Exxon Mobil Corporation : ExxonMobil Plans Five-Year Investment of $185 Billion to Develop New Energy Supplies
03/08/2012| 09:05am US/Eastern
Mobil Corporation (NYSE:XOM) plans to invest approximately $185
billion over the next five years to develop new supplies of energy to
meet expected growth in demand, Chairman and CEO Rex W. Tillerson said
today in a presentation at the New York Stock Exchange.
"During challenging times for the global economy, ExxonMobil continues
to invest to deliver the energy needed to underpin economic recovery and
growth," Tillerson said in a presentation to investment analysts.
Tillerson said that even with significant efficiency gains, ExxonMobil
expects global energy demand to increase by 30 percent by 2040, compared
to 2010 levels. Demand for electricity will make natural gas the fastest
growing major energy source and oil and natural gas are expected to meet
60 percent of energy needs over the next three decades.
To help meet that demand, ExxonMobil is anticipating an investment
profile of approximately $37 billion per year through the year 2016.
"An unprecedented level of investment will be needed to develop new
energy technologies to expand supply of traditional fuels and advance
new energy sources," said Tillerson. "We are developing a diverse
portfolio of high-quality opportunities across all resource types and
A total of 21 major oil and gas projects will begin production between
2012 and 2014. In 2012 and 2013, the company expects to start up nine
major projects and anticipates adding over 1 million net oil-equivalent
barrels per day by 2016.
At the meeting the company outlined its major achievements in 2011 and
plans for the future. Highlights include:
ExxonMobil replaced 107 percent of its 2011 production (116 percent
excluding asset sales), increasing proved reserves to 24.9 billion oil
equivalent barrels. It was the 18th consecutive year the company
replaced more than 100 percent of its production, with proved reserve
additions of 1.8 billion oil-equivalent barrels.
Nine major upstream projects are expected to start-up in the next two
years including four in West Africa, Kashagan Phase 1 in Kazakhstan
and the Kearl Oil Sands project in Canada.
In the downstream, the company completed a large project at the
Thailand refinery, which is expected to increase the supply of lower
sulfur motor fuels by more than 50 thousand barrels per day.
Additional projects are under way, including new facilities at
ExxonMobil's Singapore refinery and at a joint-venture refinery in
A major expansion at the Singapore chemicals facilities is nearing
completion. Commissioning and startup activities are expected to
continue through 2012 and will provide a world-scale integrated
platform with unparalleled feedstock flexibility. The expansion will
add 2.6 million tonnes per year of additional capacity and will help
meet demand growth in Asia Pacific.
This is the 10th year that ExxonMobil has made an annual presentation to
analysts at the New York Stock Exchange.
CAUTIONARY STATEMENT: Projections, expectations, business plans, and
other statements of future events or conditions in this release are
forward-looking statements. Actual future results, including demand
growth and mix; capital expenditures; resource recoveries; production
rates and growth; and project plans, schedules, and outcomes could
differ materially due to changes in market conditions affecting the oil
and gas industry, including long-term oil and gas price levels; the
occurrence and duration of economic recessions; future technological
developments; political or regulatory developments; reservoir
performance; timely completion of development projects; the outcome of
commercial negotiations; unexpected technical or operating events; and
other factors discussed in Item 1A of ExxonMobil's most recent Form 10-K
and posted in the Investors section of our website. (www.exxonmobil.com)
Proved reserves in this release, for 2009 and later years, are based on
current SEC definitions, but for prior years the referenced proved
reserve volumes are determined on bases that differ from SEC definitions
in effect at the time. Specifically, for years prior to 2009 included in
our statement of 18 straight years of at least 100 percent replacement,
reserves are determined using the price and cost assumptions we use in
managing the business, not the historic prices used in SEC definitions.
Reserves determined on ExxonMobil's pricing basis also include oil sands
and equity company reserves for all periods. Prior to 2009, these
volumes were excluded from SEC reserves.
"Resources" and "resource base" include quantities of discovered oil and
gas that are not yet classified as proved reserves, but that are
expected ultimately to be recovered in the future. The term "resource
base" is not intended to correspond to SEC definitions such as
"probable" or "possible" reserves.
See the "Frequently Used Terms" posted in the Investors section of our
website for more information on proved reserves and resources.
the largest publicly traded international oil and gas company, uses
technology and innovation to help meet the world's growing energy needs.
ExxonMobil holds an industry-leading inventory of resources, is the
largest refiner and marketer of petroleum products, and its chemical
company is one of the largest in the world. For more information, visit www.exxonmobil.com.
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© Business Wire 2012