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Page added on March 9, 2012
ExxonMobil admits 2012 output will fall
In an annual presentation to analysts at the New York Stock Exchange, the company said its production of liquids would grow by 2% to 3% on average through 2016, while its gas output would rise by 0.5% to 1%.
The world’s largest non-government controlled producer, ExxonMobil saw its production rise last year by 1% to 4.5 million barrels of oil equivalent per day.
Over 2011, ExxonMobil replaced 107% of its annual production, increasing proved reserves by 1.8 billion barrels of oil equivalent to 24.9 billion barrels.
The US giant spent a total of $36.8 billion in 2011, slightly less than the $37 billion per year it expects to spend annually for the next five years.
That spending will go toward nine major project start-ups this year and in 2013, the company said, which will help it bring on new production of more than 1 million barrels of oil equivalent per day over five years.
The start-ups include four projects in West Africa, Kashagan Phase 1 in Kazakhstan and the Kearl oil sands project in Canada.
“The industry is in a period of high capital investment,” chief executive Rex Tillerson told the meeting, Reuters reported.
Tillerson said that even with significant efficiency gains, ExxonMobil expects global energy demand to increase by 30% between 2010 and 2040.
Demand for electricity will make natural gas the fastest growing major energy source, he predicted, estimating oil and natural gas would meet 60% of energy needs over the next three decades.
“An unprecedented level of investment will be needed to develop new energy technologies to expand supply of traditional fuels and advance new energy sources,” Tillerson said, vowing ExxonMobil would create a diverse portfolio of high-quality projects to meet higher demand.
5 Comments on "ExxonMobil admits 2012 output will fall"
BillT on Sat, 10th Mar 2012 1:12 am
“The industry is in a period of high capital investment,”
Come on suckers, get out your Charmin dollars…we need your money to be profitable because our oil supply is shrinking! LOL “…it expects its output to drop 3% this year,…” Of course, but it is nice to see a major oil company admit that the oil supply is shrinking. No amount of dollars can change that. And, no, they will NOT meet demand, evidence of which will be visible on every price sign at every gas station in the world. $6 gas for Labor Day?
peakoilishere on Sat, 10th Mar 2012 5:48 am
They’ve had passed years with shrinking production in the past only time will tell if its a trend so we will see.
dsula on Sat, 10th Mar 2012 1:09 pm
Growth in production to 2016, 107% of production replaced. How come? Doesn’t exxon understand you can’t do that after peak? You have to decline.
SilentRunning on Sat, 10th Mar 2012 2:49 pm
But wait – I thought the huge, vast and enormous US Oil/gas production was already coming online and boosting our production? How is it even possible that Exxon/Mobile’s output could drop?? I don’t get it. What about all that oil now coming from North Dakota? What about the oil sands? All that new supplies from fracking that is gushing out of the ground?
To admit that oil production is falling this year would be to admit that Peak Oil is real. But, all the media handout sheets have been telling us that Peak Oil is a myth, and that technology and innovation will produce More Oil Forever.
Therefore, this report of less oil this year MUST be wrong.
Phewww!
Kenz300 on Sun, 11th Mar 2012 1:05 am
Deep water is one of the few places left to drill. Can it be done safely? If the BP disaster in the Gulf is any indication it can not be done safely. The oil companies have a pretty poor safety record.