Exxon Mobil Corp. and Chevron Corp. on Oct. 29 disclosed plans to expand drilling in the top U.S. shale basin after posting their biggest quarterly profits in years.
Latecomers to the West Texas shale fields, both last year slashed shale production and cut drilling as oil demand tanked. They could soon add two rigs each and rev up output, executives said on earnings calls.
Exxon Mobil last quarter produced about 500,000 bbl/d of oil and gas from the Permian Basin using nine drilling rigs.
“We may see a couple more rigs come on here,” said CEO Darren Woods, based on its latest well results. The company’s third-quarter Permian output rose about 30% above the prior period, he said.
Chevron plans to add two drilling rigs and two crews to complete new wells in the Permian this quarter, CFO Pierre Breber told analysts.
Its Permian production could rise to 1 million bbl/d from 600,000 bbl/d, Chevron said, on a day it reported $6.11 billion in net income, its best quarter since 2013.
RELATED:
Exxon Mobil Pledges to Revive $1.2 Billion Share Buyback Program
Chevron Posts Highest Quarterly Profit in Eight Years
Exxon Mobil paid $30 billion for U.S. shale producer XTO Energy in 2010 in an ill-timed bet on natural gas prices and later spent up to $6.6 billion to add to its West Texas shale assets.
In 2017, it took a $2 billion charge against its natural gas reserves from the XTO buyout, and last year wrote down the value of natural gas properties by about $20 billion, most associated with XTO, as demand for fuels tanked during the pandemic.
Recommended Reading
TGS, SLB to Conduct Engagement Phase 5 in GoM
2024-02-05 - TGS and SLB’s seventh program within the joint venture involves the acquisition of 157 Outer Continental Shelf blocks.
StimStixx, Hunting Titan Partner on Well Perforation, Acidizing
2024-02-07 - The strategic partnership between StimStixx Technologies and Hunting Titan will increase well treatments and reduce costs, the companies said.
Forum Energy Signs MOU to Develop Electric ROV Thrusters
2024-03-13 - The electric thrusters for ROV systems will undergo extensive tests by Forum Energy Technologies and SAFEEN Survey & Subsea Services.
Axis Energy Deploys Fully Electric Well Service Rig
2024-03-13 - Axis Energy Services’ EPIC RIG has the ability to run on grid power for reduced emissions and increased fuel flexibility.
TotalEnergies Rolling Out Copilot for Microsoft 365
2024-02-27 - TotalEnergies’ rollout is part of the company’s digital transformation and is intended to help employees solve problems more efficiently.