WoodMac Bullish on Exxon Permian Growth Campaign

Wood Mackenzie has revealed that it is bullish on ExxonMobil’s Permian growth campaign.

“Exxon is clearly on target with a development approach unlike anything we’ve seen before in a shale basin,” WoodMac said in a company statement posted on its website on Monday.

“The supermajor is running an unprecedented 60 rigs in the Permian, up three-fold from just 20 rigs a year and a half ago, and it’s just getting started,” WoodMac added.

In March this year, Exxon revealed that it was going to increase its Permian output to 1 million barrels per day by 2024.  

“We’re increasingly confident about our Permian growth strategy due to our unique development plans,” Neil Chapman, ExxonMobil senior vice president, said in a company statement at the time.

“We will leverage our large, contiguous acreage position, our improved understanding of the resource and the full range of ExxonMobil’s capabilities in executing major projects,” he added.

Reacting to Exxon’s announcement back in March, WoodMac described the timing of it as “bold”.

“With infill wells underperforming and decline rates from producing wells accelerating, the timing on this announcement is bold to say the least,” WoodMac stated on March 6.

ExxonMobil, describes itself as one of the world’s largest publicly traded energy providers and chemical manufacturers. WoodMac is an energy research and consultancy company.

To contact the author, email andreas.exarheas@rigzone.com