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
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
In global capital spending - double our earnings over a five-year period
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.
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.
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
The fundamentals of fuel prices and supply
We’re all hearing about high fuel prices, and some are calling on energy companies like ExxonMobil to increase production to help ease pain at the pump. Hear from Karen McKee, president of ExxonMobil Product Solutions, with answers to some of your frequently asked questions.
Liquefied natural gas: Providing more energy with lower emissions
Peter Clarke, senior vice president of LNG for ExxonMobil Upstream, believes that natural gas could be key to providing affordable and reliable energy while lowering carbon emissions. Read more about our plans to scale LNG production as we work toward a lower-emissions energy future.
Fueling today’s energy needs
Guyana is the location of one of the most significant oil discoveries in the past decade. Using industry-leading technology, we are working to develop, reliably produce and deliver energy resources from these discoveries to the global market.
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.