ExxonMobil Tips the Scales at 4.1mn boe/d but Cuts Capex by 25%
The world’s biggest private producer ExxonMobil raised oil and gas output by 3.2% in 2015 to 4.1mn barrels of oil equivalent/d but it is cutting capital expenditure by a quarter this year.
With low oil prices, the US major still saw its profits halve from $32.5bn in 2014 to $16.15bn. Overall its gas output was down by 5.7% to 10.515bn ft³/d, falling everywhere except Asia and Australia/Oceania; and liquids rose by 11%.
Capital and exploration expenditures were $31.1 billion, down 19% from 2014. The company anticipates further reductions in 2016, with capital and exploration expenditures of $23.2bn.
“While our financial results reflect the challenging environment, we remain focused on the business fundamentals, including project execution and effective cost management,” said CEO Rex Tillerson February 2. “The scale and diversity of our cash flows, along with our financial strength, provide us with the confidence to invest through the cycle to create long-term shareholder value.”
Upstream earnings were $7.1bn, down $20.4bn from 2014. Lower realisations decreased earnings by $18.8bn. Natural gas production of 10.5bn ft³/d was down by 630mn ft³/d from 2014 as regulatory restrictions in the Netherlands – the Dutch government has limited gas production at the Groningen field – and field declines were partly offset by project ramp-up, work programs and entitlement effects. European output was down 530mn ft³/d.