ExxonMobil releases 2023 capex of $24 billion, up 9%; keeps production flat

ExxonMobil released a broad outline of its 2023 corporate plan Dec. 8, as well as goals for the next five years, saying it plans $23 billion to $25 billion of capital spending next year, up 9% on the year, and plans to keep production steady at 3.7 million b/d of oil equivalent, assuming Brent oil prices are at least $60/b.

The company's 2023 production target was in line with its output from the first three quarters of this year, and also with its 2021 average. That will offset the impact of strategic portfolio divestments and its exit earlier this year from the Sakhalin-1 project in Russia, ExxonMobil said.

The company's upstream earnings potential should double by 2027 compared to 2019 owing to high-return, low-cost-of-supply project investments, it said, adding that more than 70% of the company's capital investments would be funneled toward key developments in the Permian Basin in West Texas and New Mexico, Guyana, Brazil and global LNG projects.

By 2027, upstream production is expected to grow 500,000 boe/d to 4.2 million boe/d, with more than 50% of the total to come from those key growth areas.

Slashes GHG emissions

Roughly 90% of the company's upstream investments that result in new oil and gas production should have returns greater than 10% at oil prices of at least $35/b, while also slashing upstream-operated greenhouse gas emissions intensity by 40%-50% through 2030 compared to 2016 levels.

The corporate plan through 2027 maintains annual capital expenditures at $20 billion-$25 billion, up from about $22 billion in 2022, while increasing lower-emissions investments to around $17 billion, up $2 billion, or nearly 15% from the company's earlier commitment.

"Our five-year plan ... is a continuation of the path that has delivered industry-leading results in 2022," CEO Darren Woods said. "We view our success as [being able to] produce the energy and products society needs, and be a leader in reducing greenhouse gas emissions from our own operations and also those from other companies."

ExxonMobil has announced more than a dozen carbon capture and storage projects in the US and around the world.

In addition, the company said it is on track to reduce its structural costs by around $9 billion through year-end 2023 compared to 2019.