The roots of the hydraulic fracturing revolution in the U.S. bring names like EOG Resources Inc (NYSE: EOG), Pioneer Natural Resources (NYSE: PXD), Apache Corporation (NYSE: APA) and Devon Energy Corp (NYSE: DVN) on the oil side, and Range Resources Corp. (NYSE: RRC), Chesapeake Energy Corporation (NYSE: CHK) and Mitchell on the gas side. texas frac boom
Exxon Mobil said Tuesday that as soon as 2024 it expects to produce the equivalent of more than 1 million barrels of oil per day in the basin, up from a forecast of 600,000 barrels by 2025.
Exxon, the largest operator in the Permian, has 48 drilling rigs there and plans to raise that to 55 by year-end. The Irving, Texas-based company estimates that it is sitting on about 10 billion barrels of oil in the basin. Exxon looking at 1 million barrels of oil per day in the basin by 2024
New Mexico to get $64 Billion, thanks to crude oil benefits
ExxonMobil today said a new study estimates the company’s development of Permian Basin resources in New Mexico will generate approximately $64 billion in net economic benefits for the state and local communities over the next 40 years, creating thousands of new jobs and providing increased funding for education, health and human services and infrastructure improvements.
Study evaluates planned development activities over the next 40 years
Research shows New Mexico to receive an estimated $62 billion in net fiscal benefits
Local communities to gain an estimated $1.8 billion in economic growth
“The Permian Basin is the engine of America’s energy renaissance and New Mexico residents will see direct economic benefits and opportunities from our planned investments,” said Darren W. Woods, chairman and chief executive officer of Exxon Mobil Corporation. “We will be a significant, long-term economic contributor to the state of New Mexico and will work hard to be a trusted member of the community.”
The state government will receive an estimated $62 billion in net fiscal benefits, $44 billion of which will come from new leases and royalties, according to the research. About $8.5 billion will come from state oil-and-gas severance taxes, said the study which was conducted for ExxonMobil by Impact Data Source. The research findings assume an oil price of $40 per barrel.
From an employment perspective, ExxonMobil’s activities will generate an average of 4,100 direct job opportunities for New Mexicans per year for the next 40 years, the study estimates. Over the next 40 years, the company’s operations are expected to generate a total of approximately $29 billion in new wages, salaries and benefits.
New Mexico Governor Michelle Lujan Grisham said the industry is crucial for residents and expressed optimism about the projections.
“The benefit to this state’s bottom line, as represented by investments from companies like ExxonMobil, has been enormous,” Gov. Lujan Grisham said. “My administration has been and will continue to be responsive to changes in the energy sector and the need for meaningful regulation and diversification as a means of ensuring a sustainable future – for our children, their education, the infrastructure that will support our collective future and more.”
Exxon Aims for $15-a-Barrel Costs in Giant Permian Operation
Exxon plans to deploy 55 rigs in the Permian this year, by far the most of any driller, as it aims to increase output in the region roughly five-fold to about 1 million barrels a day by 2024.
With $15 Barrel oil cost OPEC will have a hard time dictating it’s oil price and it will jo longer be able to threaten the USA economy with it’s warnings of crahing the fracking industry.
Big oil expansion in Texas will not come without a cost. Mostly from small players that started the great frack revolution , if prices drop like they do” , small players will be forced to sale-out to the big boys in town.
Exxon’s Permian expansion pits it against U.S. rival Chevron, which is also aiming for strong growth there. The San Ramon, California-based company announced plans last week for 900,000 bpd by 2023.