Exxon 2014 Annual Report Download - page 20

Driven by a strong acreage position and operational expertise in unconventional plays, ExxonMobil has emerged
as the leading oil and gas producer in the United States. With support from our world-class research organization and
Downstream businesses, our XTO organization is significantly growing production volume from liquids-rich plays in
the Permian, Bakken, and Ardmore/Marietta.
Permian: Expanding Horizontal Upside
ExxonMobil is embarking on another phase of liquids
growth from one of our oldest producing regions, the
Permian Basin of West Texas and New Mexico, where
we are a leading leaseholder and operator. Leveraging
a vast land position exceeding 1.5 million net acres, and
deploying substantial waterflood, CO2, and unconventional
operations, net production surpassed 100 thousand
oil-equivalent barrels per day at year-end 2014, up
15 percent from the prior year. Eighteen operated rigs
were drilling liquids-rich wells at the end of the year.
The bulk of the 2014 gains occurred on our legacy
properties, mainly as a result of increased infill
drilling, waterflood optimization, workover activities,
infrastructure additions, and water-handling
improvements. For example, gross operated oil production in our Fullerton and Robertson fields has more than doubled
over the past three years to more than 10 thousand barrels per day, as a result of an aggressive workover and infill drilling
program in the main Clearfork reservoir.
We continue to expand production capacity by progressing water and gas-handling improvement initiatives. Through
third-party agreements, we recently completed gas gathering and plant projects in the Goldsmith and Parks Pegasus areas,
allowing for more efficient processing of associated gas, improved uptime, reduced flaring, and higher yield.
We also expanded our acreage position during 2014 through three transactions that roughly doubled our leasehold acreage
to
130,000 acres in the core of the Wolfcamp play in the Midland Basin. The transactions highlight our disciplined investment
approach and unique ability to execute deals with attractive valuations in a competitive industry environment.
In 2014, 16 horizontal Wolfcamp wells were brought online with encouraging initial production as we continue to optimize
drilling and completions, and further delineate acreage.
The application of horizontal drilling, combined with hydraulic
fracturing, is enabling commercial production from a larger area that
was previously marginal or uneconomic because of poor rock properties.
Part of this optimization also involves the application of data analytics
expertise to identify attractive acreage and inform completion design.
Our proprietary analytical methods provide us with a cost-effective way
to mine vast amounts of data to identify key performance-enhancing
controls. This allows ExxonMobil to rapidly improve performance
without investing substantial capital to learn “conventionally” through
successive designs.
Our presence throughout the Permian Basin value chain, from
upstream production through Gulf Coast refining, offers multiple
opportunities to maximize overall profitability and highlights the
strength of our integrated model.
Going forward, Permian liquids volumes are expected to grow, driven
by unconventional activities in the Wolfcamp, Spraberry, Bone Springs,
Wolfberry, and Wichita Albany reservoirs. Horizontal drilling in the
Wolfcamp play provides the largest component of growth.
(thousands of barrels per day)
Net Liquids Production
from Major U.S. Onshore Plays
Permian, Bakken, Ardmore/Marietta
Eric Whetstone • Whetstone Design
EDITOR
Nick Berthiaux • Investor Relations
Exxon Mobil Corporation, Irving, TX
Carol Zuber-Mallison • ZM Graphics, Inc.
studio/cell: 214-906-4162 • fax: [phone]
ATTENTION: OWNER VERSION
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CREATING VALUE THROUGH THE CYCLE
Upstream: Unlocking Resource Value
Eric Whetstone • Whetstone Design
EDITOR
Nick Berthiaux • Investor Relations
Exxon Mobil Corporation, Irving, TX
Carol Zuber-Mallison • ZM Graphics, Inc.
studio/cell: 214-906-4162 • fax: [phone]
ATTENTION: OWNER VERSION
APPROVED BY
Jan. 23, 2015
FILE INFO
LAST FILE CHANGE MADE BY
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Permian.ai
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2014 Transactions
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EXXONMOBIL 2014 SUMMARY ANNUAL REPORT
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