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a world without boundaries
June 1, 2007
2008/2009 Major project start — ups
The search for new sources of oil and gas is not limited by time or distance. A global resource base is critical to meeting growing global demand. That's why ExxonMobil is working to bring new projects online today that will help the world of tomorrow.
The world continues to demand more and more energy. Energy to power our homes, fuel our cars and live our lives. That means that ExxonMobil's — a company that already produces 4.2 million oil equivalent barrels a day — must constantly pursue even more.
From the start of 2007 to the end of 2009, the company expects to complete 25 major start-up projects around the world — not only increasing the company's supply of oil and gas, but also helping to meet this growing demand. And in the process, these high-value, long-term projects are delivering strong returns for the company's shareholders.
"We seek to identify and pursue all attractive exploration opportunities," explains Stuart R. McGill, senior vice president of Exxon Mobil Corporation. "As we strive to maximize the profitability of the large volumes of oil and gas that we produce, we invest in projects that deliver superior returns. Our upstream portfolio is the largest in the industry, and while we're pleased with its size, it's really the quality and diversity that make us unique among our peers."
Across the industry, pressure to bring new energy supplies to market continues to intensify. Through 2030, global demand for oil and other liquids is expected to climb 1.4 percent annually, while demand for natural gas will grow even faster — approximately 1.7 percent each year. To help keep pace, ExxonMobil constantly searches for new sources of supply.
Last year, the company commenced production at seven projects across the globe, and plans call for seven more to come onstream in 2007. Beyond that, another 50 are in various stages of planning and execution, since it often takes years of hard work to develop and produce a new discovery. And each project has its own unique characteristics.
For example, the company is currently expanding development of "tight gas" in the Piceance Basin in Rio Blanco County, Colorado. For years, ExxonMobil and others have known about the tremendous resource at Piceance, but until recently, it was neither technologically nor economically feasible to tap into its full potential, which lies at depths up to 16,000 feet below the surface.
That all changed when ExxonMobil developed its proprietary Multi-Zone Stimulation Technology (MZST), which allows operators to create fractures in reservoir rock quickly, so gas can flow more easily. Using MZST and the cutting-edge Fast Drill Process, ExxonMobil is increasing recovery and production rates at Piceance, while reducing development costs and the environmental footprint.
The company is taking a phased approach with this project, gradually increasing current field production of 55 million cubic feet of gas per day over the next few years. The company has interest in 300,000 acres in the area, and the potential exists to recover nearly 35 trillion cubic feet of gas over the life of the project.
Halfway around the world, in Qatar, ExxonMobil has joined with Qatar Petroleum and other joint-venture partners to further develop the North Field, the largest non-associated gas field in the world. Existing and planned liquefied natural gas (LNG) trains and pipeline projects are expected to develop resources exceeding 25 billion oil equivalent barrels. In 2008 and 2009, four trains are expected to start up, each with the capacity to generate 7.8 million tons of LNG per year.
In Angola, the Kizomba C project — the next phase of Block 15 development — is intended to provide access to three oil fields in challenging deepwater reservoirs. Development began in 2006 and required some of the most advanced development and production technology in the world. With its 36 wells, Kizomba C is ultimately expected to recover nearly 600 million barrels of oil.
Two floating production storage and offloading (FPSO) vessels will be used to develop Kizomba C. End to end, these massive FPSOs are about eight football fields long, and from keel to the topmost deck structures, they reach the height of a 10-story building.
When completed, Kizomba C is expected to bring the total Block 15 production to more than 700,000 barrels of oil per day (gross).
McGill says developing innovative technologies such as what is in use at Piceance, Qatar and Angola is standard procedure at ExxonMobil.
"On a global basis, we consistently apply appropriate operating practices and technologies," McGill says, "and when we don't have the technology, we have the capability to develop it. This gives us a strong advantage in the pursuit of resources around the globe."
"We work to develop and implement proprietary technologies at every stage of the asset life cycle to drive down costs and create new opportunities."
