ExxonMobil sees oil, gas liquids leading output growth in coming years
By JOE CARROLL
Bloomberg
ExxonMobil is sticking to production targets established when oil traded for more than $100/bbl, signaling confidence that demand for crude-based fuels will continue to expand.
Exxon’s oil and natural gas output will grow by 2% this year and 3% annually in 2016 and 2017, the world’s largest energy producer by market value, said in a presentation to investors and analysts today.
The outlook assumes an average crude price of $55/bbl.
The forecast is little changed from Exxon’s outlook a year ago. At the time, Brent crude, the benchmark for international oil sales, traded for about $108/bbl.
The price has since fallen about 44% as global supplies grew faster than consumption.
Even in the current price environment, Exxon said it can continue to earn “attractive returns” with its onshore US production.
Production growth will be driven by oil and so-called gas liquids such as propane, which will increase by 7% this year and 4% annually in 2016 and 2017, according to the presentation.
Natural gas output will drop 2% annually this year and next before rising 4% in 2017, the Irving, Texas-based company said.
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