Working to meet energy supply and demand

ExxonMobil is committed to meeting society’s needs for products essential to modern life, providing reliable energy and investing in a lower-emission energy system for tomorrow

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SUPPLY AND PRODUCTION

Producing more oil and gas than any other U.S. energy company

Energy solutions are required to meet basic human needs and drive economic progress.

The current supply and demand imbalance in global oil and natural gas markets is having a very real impact on families around the world. Today, demand is outpacing available supplies, which is increasing prices for oil and refined products like gasoline and diesel fuel.

The imbalance is largely a result of the dramatic decline of global demand during the pandemic, which led to less industry investment and refinery closures. Supply was further impacted by the Ukraine invasion as global sanctions resulted in the removal of Russian oil supplies from the market.

Rebalancing supply and demand will take time. And, investments in oil and natural gas production are large and take years to implement.

ExxonMobil is investing more money to grow oil and gas production than any other U.S. company. In fact, we invested twice as much to develop global energy resources than we earned ($118 billion invested vs. $55 billion earned) between 2017 and 2021.

Investing to grow energy supply

$118 B

In global capital spending - double our earnings over a five-year period

>560 K

Record Permian Basin net production oil-equivalent barrels per day in 4Q

>360 K

Year-end gross production barrel per day in Guyana

>30 %

Increase in year-over-year Guyana and Permian production
CONTINUED INVESTMENTS

Investing more to increase supply and enable a lower-emissions future

Achieving long-term energy security requires balanced, diversified and sustained investment in both traditional energy sources and lower-emission solutions throughout the energy transition. We have invested for decades to develop new energy resources to help meet society’s growing needs. Even during the global pandemic, when ExxonMobil lost $22 billion, we continued to invest in the development of new energy resources with an expectation that the economy and global demand would eventually rebound.

In our view, increasing supplies of reliable energy and decreasing greenhouse gas emissions is not an “either/or” proposition. We are investing to achieve both — to strengthen energy security and help advance the energy transition.

This includes investments in the U.S. of more than $50 billion over the past five years, resulting in an almost 50% increase in our U.S. production of oil during this period. Plus, we have plans to invest approximately $17 billion globally on lower-emission initiatives through 2027.

Access to reliable and affordable energy is essential to our daily lives and underpins economic and social progress around the world. ExxonMobil is proud to contribute to this progress by reliably supplying the energy the world needs, strengthening global energy security, and playing a leading role in the energy transition.
Darren W. Woods

Chairman and CEO of ExxonMobil

INCREASED PRODUCTION

The Permian Basin

Between 2019 and 2022, we more than doubled our oil and gas production in the Permian Basin of West Texas and Southeast New Mexico. We’re currently producing more than 560,000 barrels per day from those operations, and we expect to increase production by another 25% this year compared to 2021. We are also increasing our refining capacity to process U.S. crude by about 250,000 barrels per day – which is the largest refinery addition in the U.S. in a decade.

At the same time, we also plan to reach net-zero emissions (Scope 1 and 2) for our Permian Basin unconventional operations by 2030 and eliminated all routine flaring in the area at the end of 2022.

INCREASED PRODUCTION

Guyana

We currently have four projects in offshore Guyana and have made five new discoveries in 2022 alone – helping supply affordable energy and meet increasing demand around the world.

Liza Phase 1 is producing approximately 130,000 barrels of oil equivalent per day. Liza Phase 2, which started production in February 2022, is steadily ramping up to its capacity of 220,000 barrels per day. Payara is expected to start-up before year-end 2023 and produce 220,000 barrels per day. Yellowtail is expected to produce 250,000 barrels per day in 2025.

A deeper dive

  • Liquified Natural Gas

    ExxonMobil has been a leader in the natural gas sector for over 40 years, and we’re committed to deepening our investment in this vital energy resource to help safeguard the environment for future generations.

  • Unconventional

    We operate in all of the major U.S. unconventional producing regions and Western Canada and provide support and technical services to the corporation’s operations in Argentina.

  • An XTO well site near Forth Worth

    Natural gas

    Oil and natural gas technologies, such as horizontal drilling and hydraulic fracturing, have unlocked vast unconventional resources. These supplies have dramatically altered the energy landscape over the past decade, particularly in North America.

    Read more
    Office buildings sitting at the edge of a lake with blue skies in the background.
    PROMOTING INVESTMENT

    Policy and energy security

    Policies that reflect the importance of energy, create certainty and improve predictability, encourage industry investment, and ensure affordable and reliable supplies of energy.

    To stabilize prices over the long term, policymakers can promote new investment through clear and consistent policy that supports resource development and necessary infrastructure such as pipelines. 

    In the short term, the U.S. government could enact measures often used in emergencies following hurricanes or other supply disruptions – such as waivers of Jones Act provisions and some fuel specifications to increase supplies.

    Longer term, government leaders can promote investment through clear and consistent policy that supports U.S. resource development, such as regular and predictable lease sales, as well as streamlined regulatory approval and support for infrastructure such as pipelines.

    What we do