In New Mexico’s Chihuahuan Desert, Exxon Mobil Corp is building a massive shale oil project that its executives boast will allow it to ride out the industry’s notorious boom-and-bust cycles.
Source: www.reuters.com
As independent oil producers scale back investments in the Permian basin amid investor pressure to control spending and boost returns, oil majors are moving aggressively to dominate the basin. Phase one of drilling at the Permian was dominated by nimble independent producers who pioneered shale drilling technology. However, over the past two years, the majors have included Exxon, Chevron, Royal Dutch Shell and BP Plc who have spent an estimated $10 billion buying acreage in the top U.S. shale field. These majors currently have 75 drilling rigs here this month, up from 31 in 2017. Investments made by majors continue to grow following the recent announcement by Exxon Mobil to build a massive shale oil project spreads over 1.6 million acres in the Permian. Together, Exxon, Chevron, Shell and BP now hold about 4.5 million acres in the basin. Exxon and Chevron are poised to become the biggest producers in the basin, surpassing independent producers such as Pioneer Natural Resources.
