ExxonMobil’s 2Q17 Permian production
In 2Q17, ExxonMobil (XOM) reported a production of 165,000 Boepd (barrels of oil equivalent per day) in the Permian Basin and was running 16 rigs across the region. XOM’s 2Q17 Permian production was 20% higher than in the previous quarter, and it expects its total operated rigs in the Permian to reach 19 by the end of August.
In January 2017, XOM announced its decision to acquire Bass Family Companies, which held vast resources of oil in the Permian Basin, for a staggering $6.6 billion.
XOM noted that strong drilling and completions in the Midland Basin have yielded unit development costs of about $7.00 per boe. In the Delaware Basin, XOM believes that its “highly contiguous acreage position” in the Delaware Basin positions it to “exploit longer laterals and drive down unit development costs.”
XOM noted the following in its 2Q17 earnings conference: “Despite growing industry activity in the Permian, we have successfully offset inflationary pressure through increased efficiencies and high recoveries per well.”