Friday, March 9, 2012
US supermajor ExxonMobil Corp. plans to sink a significant amount of cash over the next five years on developing new energy supplies. In a presentation at the NYSE the company’s chairman and CEO Rex Tillerson said ExxonMobil will spend approximately $185 billion to meet expected growth in demand.
“During challenging times for the global economy, ExxonMobil continues to invest to deliver the energy needed to underpin economic recovery and growth,” Tillerson said.
Even with significant efficiency gains Tillerson said that ExxonMobil expects global energy demand to increase by over 30% by 2040, compared to 2010 levels. He also said that an increase in demand for electricity will make natural gas the fastest growing major energy source.
Oil and gas are expected to meet an estimated 60% of energy needs over the next 30 years. To help meet that demand, ExxonMobil is anticipating an investment profile of approximately $37 billion per year through the year 2016.
“An unprecedented level of investment will be needed to develop new energy technologies to expand supply of traditional fuels and advance new energy sources,” said Tillerson. “We are developing a diverse portfolio of high-quality opportunities across all resource types and geographies.”
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 1 million net boepd by 2016.
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.