Exxon's output per well falls to first from sixth in the key basin.
Shale acres doubled with the plan to increase oil output sharply, only to double in terms of amount of new units sold or dumped into the reserve.
HOUSTON, June 9 - Exxon Mobil Corp's oil wells in part of a marquee US shale field generated fewer barrels per well as it ramped up overall spending and production, according to a new report, which looks at data from 2018 - 2019.
A $6.6 billion acquisition of New Mexico acres in 2017 doubled Exxon's holdings in the Permian Basin that spans west Texas and New Mexico. The New Mexico portion of the Exxon is among the priorities for the Permian with a goal to boost shale output to 700,000 bpd by 2025.
The average liquid capacity for a well's first 12 months fell in 2018 from an average of 635 barrels per day at the Delaware basin in New Mexico, according to the IHS Markit data compiled by the Institute for Energy Economics and Financial Analysis.
It dropped to seventh on a per-well production basis among a group of larger, publicly traded producers, the data showed behind Occidental Petroleum, EOG Resources and others.
Full data for 2020 is not yet available and many wells across the basin were closed due to the pandemic, but initial findings of data that looked at the peak month of a well's production suggest that the Delaware wells of the company continue to fall behind, said Clark Williams-Derry, an IEEFA analyst.
When Julie King said Exxon spokesperson Matthew Haas continued to execute on our strategy to maximize production in the New Mexico region, which includes our Permian operations.
In a March presentation to investors, Exxon reports steady per-well returns between 2018 and 2020, citing its core New Mexico development.
The Permian holdings of the company exceeded our volume projections for six years per year or met our targets, told investors.
In 2018, Exxon was focused on the best sliced in the Delaware basin, which has a layer cake of oil producing zones and reported Raoul LeBlanc, an analysis consultant for IHS Markit - consultants. Since then it has started to produce from other layers as well.
Exxon's declining output per well came as the basin's average increased on Wednesday to about 5% according to data released on IEEFA on Wednesday. Was oil production in the Permian last decade rise sharply, but has slowed as Oil companies focus on profit over output.
Overall, the dreaded average of Delaware basin per well in 2019 rose to 478 bpd from 454bpd the year before. The IEEFA initial results for 2020 show a median of 501 bpd, the IEEFA says.
They are inviting investors to assess them on production of their wells, says Williams - Ferning, of IEEFA Investors. But their actual production is not living up to what they seem to be claiming, he said referring to the company's investor presentation.
Exxon is also active in the Midland Part of the Permian where it has ranked 12th out of the top 20 in 2019 on an output measure that normalizes for well length. The average production for the first 12 months of a well improved between 2018 and 2019 though is now expected to develop. No, you are not alone in my work. I'm new to this world. I like my former employer and I try to make it a better place.