Replies to post #14021 on The Rising Influence of Rising Affluence

[mr_o]

Re: XOM Permian

Notable for myself is that XOM's purchase is quite close to DVN's permian acreage.

[DewDiligence]

XOM—$20B for Canadian oilsands may be for naught:

https://www.wsj.com/articles/energy-companies-face-crude-reality-better-to-leave-it-in-the-ground-1487327406

…Exxon Mobil Corp. has said that as many as 3.6 billion barrels of oil that it planned to produce in Canada in the next few decades is no longer profitable to extract. A disclosure is expected in the coming week.

The step stems from U.S. regulations that require companies to take oil reserves off their books if they aren’t profitable at existing prices or can no longer be included as part of five-year development plans. The company said it still expects the reserves will be developed and again be added to its totals if prices rise, costs fall or its operations improve. It has stopped short of taking a financial write-down on its Canadian assets.

The acknowledgment by Exxon, after the company spent about $20 billion to put the oil sands at the center of its growth plans, highlights how dramatically the prospects of the region have dimmed.

Several other Big Oil companies are facing the same issue.

[DewDiligence]

XOM—Doing its part to keep oil price low:

https://www.wsj.com/articles/exxon-mobil-turns-to-u-s-shale-basins-for-growth-1488384880

Exxon Mobil Corp. on Wednesday outlined an ambitious plan to turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future.

The company plans to spend about a fourth of its 2017 budget—about $5.5 billion—drilling in Texas, New Mexico and North Dakota, tapping a vast inventory of wells that can turn a profit at a price of $40 a barrel.

…Yet unlike some peers that plan to keep investment roughly flat in future years, Exxon plans to increase spending to an average of $26 billion a year from 2018 to 2020. The company plans $22 billion in investments this year.