On Thursday, Exxon Mobil (XOM.N) CEO Darren Woods said new technologies would double oil production from the company’s U.S. shale properties in five years.
In December, the biggest U.S. oil producer delayed a goal of pumping 1 million barrels per day in the Permian Basin, the top shale field, until 2027 due to COVID-19 epidemic delays. Exxon said it also launched the five-year technology development initiative.
At Bernstein Strategic Decisions, Woods said, “We are beginning to see the signs of some very promising new technologies” that will “significantly improve recovery” volumes.
He said Exxon recovered 10% of shale resources.
He suggested fracturing longer lateral well segments and better maintaining fracks to increase resource flow as a first step in new shale technologies.
“My challenge to the organization was to double recoveries and find technologies that could unlock that,” Woods said. “Much oil remains on the ground.”
In December, Exxon announced a new goal of 900,000 to 1 million barrels per day in the Permian by 2027, with 9% to 11% production growth this year.
Woods said creating technology in-house will help Exxon find purchase opportunities.
“It is not a consolidated field yet,” Woods said, adding that the tactic produces “a bigger and bigger deal space.”
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