MOSCOW (MRC) -- ExxonMobil pumped 400,000 b/d of oil equivalent from the Permian Basin in Q2 021, which it aims to increase by 40,000 boe/d in Q3 through continued operating efficiencies, reported S&P Global with reference to the company's statement July 30.
Jack Williams, senior vice president, said the company's current eight rigs are drilling the same lateral length that it took 25 rigs two years ago.
"Completions are improving, too," Williams said during a Q2 earnings call. "Our frac rates are around 50% faster. This has resulted in a reduction in drilling and completion costs of more than 40%."
Williams said the producer remains focused on capital efficiency, delivering free cash flow "across a broad range of price scenarios" and making double-digits returns when oil prices are below USD35/b.
ExxonMobil's Q2 refining throughput increased 3% from the previous quarter, when winter storms in Texas disrupted operations. Fuel margins also increased but remain low because of an ongoing market oversupply.
It was ExxonMobil's first earnings call since climate-focused investors secured three seats on the company's board of directors, delivering their strongest pushback yet that the oil driller must start facing the future by shifting to lower-carbon technologies and preparing for sharply lower fossil fuel demand.
Woods said executives have had productive meetings with the new board about developing a new strategy for the energy transition. He detailed plans for carbon-capture projects, low-emission fuels and methane detection technologies, but he took a cautious tone about the timelines.
Woods said ExxonMobil expects to make final investment decisions next year for an expansion of its LaBarge CCS facility in Wyoming and a new carbon-capture technology pilot associated with the Porthos project at the port of Rotterdam.
The company signed a memorandum of understanding this month to explore infrastructure to help decarbonize the industrial basin in France's Normandy region and an MOU to participate in the Acorn CCS project in Scotland.
Woods said a USD100 billion proposal to capture and store CO2 emissions from heavy industries around the Houston Ship Channel was "gaining industry and third-party support," without giving more details.
The company aims to increase production for low-emission fuels by 40,000 b/d by 2025 through several projects to repurpose existing refinery units and through co-processing biofeeds and purchase agreements, Woods said.
As MRC informed previously, ExxonMobil and SABIC have announced that their joint venture, Gulf Coast Growth Ventures located near Corpus Christi, Texas, has reached mechanical completion of a monoethylene glycol (MEG) unit and two polyethylene (PE) units. Project startup is expected to begin ahead of schedule, likely in the fourth quarter of 2021.
MEG is commonly used in the manufacturing of polyesters and automotive coolants, and as a building block to create various forms of high-performance plastics. PE is commonly used in protective film, packaging and bottles and containers that prolong the shelf-life of food and medicines, as well as in various automotive parts that improve fuel efficiency and performance, and in medical applications.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased.
ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.