ExxonMobil plans to triple production in U.S. Permian Basin

HOUSTON, Jan. 30 (Xinhua) -- ExxonMobil announced Tuesday it plans to triple total daily production to more than 600,000 oil-equivalent barrels by 2025 from its operations in the Permian Basin in West Texas and New Mexico, the United States.

It said in a news release that recent changes in the U.S. corporate tax rate create an environment for increased future capital investments, including ExxonMobil's plan to spend more than two billion U.S. dollars on transportation infrastructure to support its Permian operations.

ExxonMobil is one of the most active operators in the Permian Basin. To help achieve this growth, the horizontal rig count in the Permian is expected to increase a further 65 percent over next several years. ExxonMobil has doubled its footage drilled per day on horizontal wells in the Permian since early 2014 and reduced per-foot drilling costs by about 70 percent.

Sara Ortwein, president of ExxonMobil's XTO Energy subsidiary, said they could deliver profitable production at a range of prices, "and we have logistics and technology advantages over our competitors."

ExxonMobil, the largest publicly traded international oil and gas company with its headquarters in Texas, is one of the largest refiners and marketers of petroleum products and its chemical company is also one of the largest in the world.

The Permian Basin, which is famous for its resources of shale oil and gas, is a sedimentary basin largely contained in the western part of the U.S. state of Texas and the southeastern part of state of New Mexico. Enditem