Increase Upstream earnings by…

  1. Increasing Permian tight-oil production fivefold to nearly 600 Koebd net by 2025
  2. Rapidly progressing three near-term developments in Guyana to deliver ~450 Koebd production by 2025
  3. Starting up new LNG projects in Mozambique and PNG, with potential to add more than 20 Mta of capacity by 2025

Business overview

Our Upstream business is a global leader in:

  • Exploration
  • Development
  • Production
  • Natural gas marketing
  • Energy research

We maintain a large, diverse portfolio of opportunities to provide profitable long-term value growth. Between a highly successful exploration program and recent strategic acquisitions, we added 9.8 billion oil-equivalent barrels to our resource base in 2017. Our future plans include:

  • Growing our tight-oil production in the U.S. Permian Basin fivefold
  • Growing business in Brazil, with exploration and development activities planned to start in 2018
  • Developing LNG projects in Mozambique and Papua New Guinea

Our capital discipline and proven project management systems – incorporating best practices from across our global operations – enable us to create and drive value. From the initial discovery phase through production start-up, we benefit from our extensive multidisciplinary teamwork, industry-leading technology, rigorous management practices, and proven operational expertise.

Global Upstream portfolio

Upstream opportunity captures

$13.4 billion

in earnings
Major project start-ups added

> 200,000

barrels per day of production capacity

2.8 Boeb

proved reserve additions

† Proved reserves exclude asset sales.

Strategies

  • Enhance industry-leading portfolio
  • Deliver lowest-cost-of-supply projects
  • Grow tight-liquids production to more than 800 Koebd net by 2025

9.8 billion oil-equivalent barrels of resource base additions

53 million new exploration acres captured

>20% annual growth in net tight-oil production since 2010

Business environment

Meeting the world’s growing demand for energy presents a tremendous challenge that requires a long-term view, significant investment, and continued innovation.

  • Global demand for oil is expected to rise by about 20 percent from 2016 to 2040.
  • Oil will continue to be the primary source of energy for transportation and as a feedstock for chemicals.
  • Demand for natural gas is expected to grow nearly 40 percent from 2016 to 2040, led by increasing use to help meet rising electricity demand with lower-emission fuels.

To meet this demand, increased supplies of both oil and natural gas will be needed, much of which will come from unconventional reservoirs. We expect global LNG volumes to more than double by 2040, mainly to supply the Asian and European markets. Our focus is on improving our long-term profitability by investing in low-cost-of-supply, higher-margin barrels, maximizing the value of our current capacity, and reducing costs through productivity and efficiency gains.

We’re excited about the potential of the liquids-rich Permian. It’s a low-cost resource, and we’ve built an outstanding position in the basin. Thanks to our strategically located midstream assets and the proximity of our refineries along the U.S. Gulf Coast, we’re poised for growth and set up to maximize our return on investment for years to come.
Sara Ortwein President, XTO Energy Inc.

Increase Upstream earnings by…

  1. Increasing Permian tight-oil production fivefold to nearly 600 Koebd net by 2025
  2. Rapidly progressing three near-term developments in Guyana to deliver ~450 Koebd production by 2025
  3. Starting up new LNG projects in Mozambique and PNG, with potential to add more than 20 Mta of capacity by 2025

9.8 billion oil-equivalent barrels of resource base additions

53 million new exploration acres captured

>20% annual growth in net tight-oil production since 2010

Upstream statistical recap

2017 2016 2015 2014 2013
Earnings (millions of dollars) 13,355 196 7,101 27,548 26,841
Liquids production (net, thousands of barrels per day) 2,283 2,365 2,345 2,111 2,202
Natural gas production available for sale (net, millions of cubic feet per day) 10,211 10,127 10,515 11,145 11,836
Oil-equivalent production † (net, thousands of barrels per day) 3,985 4,053 4,097 3,969 4,175
Proved reserves replacement ratio § ‡ (percent) 189 69 111 106
Resource additions ‡ (millions of oil-equivalent barrels) 9,763 2,453 1,378 3,206 6,595
Average capital employed ‡ (millions of dollars) 174,674 170,055 169,954 164,965 152,969
Return on average capital employed ‡ (percent) 7.6 0.1 4.2 16.7 17.5
Capital and exploration expenditures ‡ (millions of dollars) 16,695 14,542 25,407 32,727 38,231

Natural gas converted to oil-equivalent at 6 million cubic feet per 1,000 barrels.

§ Proved reserves exclude asset sales.

See Frequently used terms.

Note: Unless otherwise stated, production rates, project capacities, and acreage values are gross.