The company plans to invest approximately USD 185bn over the next five years, equivalent to USD 37bn a year, in energy production to meet expected growth in demand, said Exxon Chairman and CEO Rex W. Tillerson. Money will be spent on energy technologies as well as expanding traditional fuels and advance new energy sources.
Even with significant efficiency gains, ExxonMobil expects global energy demand to increase 30 per cent by 2040, compared to 2010 levels. Demand for electricity will make natural gas the fastest growing major energy source and oil and natural gas are expected to meet 60 per cent of energy needs over the next three decades, said the company.
An investment profile of approximately USD 37bn per year will be sufficient to meet this demand through 2016, said Exxon in a statement.
A total of 21 major oil and gas projects will begin production between 2012 and 2014. In 2012 and 2013, the company expects to start up nine major projects and anticipates adding over 1m net oil-equivalent barrels per day by 2016.
In 2011 ExxonMobil replaced 107 per cent of its 2011 production, increasing proved reserves to 24.9bn oil equivalent barrels. Nine major upstream projects are expected to start-up in the next two years including four in West Africa, Kashagan Phase 1 in Kazakhstan and the Kearl Oil Sands project in Canada.
In the downstream, the company completed a large project at the Thailand refinery, which is expected to increase the supply of lower sulphur motor fuels by more than 50 thousand barrels per day. Additional projects are under way, including new facilities at ExxonMobil’s Singapore refinery and at a joint-venture refinery in Saudi Arabia.
A major expansion at the Singapore chemicals facilities is also nearing completion. Commissioning and start-up activities are expected to continue through 2012 and will provide a world-scale integrated platform with unparalleled feedstock flexibility. The expansion will add 2.6 m tonnes per year of additional capacity and will help meet demand growth in Asia Pacific, said Exxon.