Exxon to commence massive oil & gas drilling program in the next three years

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Image credit: flickr user: Mike Mozart

Exxon Mobil Corp, the world’s largest oil and gas company, is planning to kick-start 16 oil and gas drilling projects in the next three years, according to the Dallas Business Journal.

Image credit: flickr user: Mike Mozart
Image credit: flickr user: Mike Mozart

The company said it will move forward with its plan to achieve production of 4,3 million oil equivalent barrels by 2017, regardless of future fluctuations in the price of oil.

“Our long-term capital allocation approach has not changed,” said Exxon’s CEO and Chairman, Mr Rex Tillerson.

He said Exxon’s overall capital expenditures will decline by 12% to $34 billion for 2015, adding that the average expenditure for the following two years will drop even further.

The company’s production for 2015 is expected to increase by 2% on the back of the recently completed projects in the Gulf of Mexico, Canada, Indonesia, Nigeria and Angola.

Its output will further increase in 2016 and 2017, when upcoming projects, including the Gorgan Jansz in Australia, the Hebron in Eastern Canada and expansion of the Upper Zakum in United Arab Emirate and Odoptu in Far East Russia, deliver first production.

Mr Tillerson said Exxon’s anticipated losses in the upstream drilling operations will be offset by its refinery capabilities.

He said that even with current crude oil prices, refineries can turn a profit by taking advantage of the spread between domestic and international oil, which currently stands at $10 per barrel.