We have expertise in developing tight gas, shale gas and unconventional oil resources.
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. ExxonMobil Unconventional manages 11 million acres with a total resource base of about 33 billion oil equivalent barrels.
We produced an average of 272,000 oil-equivalent barrels per day from our unconventional operations in the Permian Basin in 2019, an almost 80-percent year-on-year production increase. This growth came from more than 175 new wells across the Midland Basin and more than 125 new wells in the Delaware Basin, where we continue to reduce drilling and completion costs. Our inventory of more than 8,000 well locations and an estimated net recoverable resource of 10 billion oil-equivalent barrels across 1.8 million net acres, position us to significantly increase production levels in the years ahead.
Deploying leading-edge technology
The unconventional business is an ideal place to deploy ExxonMobil’s proven technological capabilities to accelerate learning and inform development plans. Using in-house geomechanical laboratory capabilities and downhole technologies, such as fiber optic systems, we can gather massive amounts of data to better define fracture geometry and well spacing. Combining this information with proprietary reservoir-simulation technology enables us to improve depletion planning and maximize recovery rates across stacked producing horizons.
Applying an innovative development approach at scale
Cube development allows us to drill multiple horizontal wells in stacked intervals from a single surface location. By applying this unique approach across our acreage, we can safely and efficiently bring online large sections of producing acreage in a shorter period of time, which maximizes recovery, reduces costs, and minimizes the environmental footprint of our operations. Most importantly, this development approach maximizes recovery by minimizing or removing potential parent-child production impacts that are caused by pressure depletion. In addition, we realize greater capital efficiencies from drilling and completion operations and surface-treating facilities, enabled by large tracts of contiguous acreage and development at scale. This approach enables a development plan and return profile that is resilient across a wide range of prices and market scenarios.
Investing in integration
We have invested in infrastructure from New Mexico to the U.S. Gulf Coast to provide logistics flexibility and maximize the integrated value of our growing Permian production. We have advanced construction of gathering and processing facilities, including the Cowboy central delivery point in the Delaware Basin. Integration, including transportation and downstream investments, enables us to maximize our value chain contributions from resource development through to fuels, lubes, and chemicals production.