ExxonMobil recently started producing oil from our second offshore development in Guyana, bringing the country’s capacity to more than 340,000 barrels a day, up from zero three years ago. By the end of the decade, oil production from Guyana, on the northern coast of South America, could exceed 1 million barrels a day – enough to make it one of the world’s top 20 producers.
Why is this important right now? This oil will contribute to Guyana’s economy – and to the global oil market, where supply constraints resulting from industry underinvestment during the pandemic and Russia’s invasion of Ukraine have led to price volatility. Oil still meets more than 30% of global energy demand and 90% of transportation needs, and remains virtually indispensable for powering larger vehicles like trucks, planes and ships.
Billions invested, regardless of oil prices
Discovery and development of Guyana’s resources is an important part of ExxonMobil’s commitment to responsibly meeting the world’s energy needs – a commitment that requires billions of dollars in sustained investments, regardless of short-term swings in global oil prices. It also reflects our support for Guyana’s economic development, job creation and sustainability objectives.
We stayed focused on disciplined investing during the economic downturn from the pandemic and we retain that focus today. We expect to invest between $21 billion and $24 billion this year, and between $20 and $25 billion annually through 2027 to deliver the products and energy resources the world needs and also to advance lower-emission solutions.
Growing energy supply while reducing emissions
In fact, our plans include spending more than $15 billion through 2027 to reduce greenhouse gas emissions from company operations, and for investments in lower-emission business opportunities to help others reduce their emissions.
Some of that money will be spent in Guyana, where by 2027 our operations are expected to have about 30% lower greenhouse gas intensity than the average of our upstream portfolio. We’re looking at even more ways to reduce emissions in Guyana and in other operations around the world.
For example, in the Permian Basin in Texas and New Mexico, we expect to produce 25% more oil and natural gas this year versus last and at the same time are aiming to reach net-zero greenhouse gas emissions from our unconventional operations there by 2030. This is a key part of ExxonMobil’s company-wide ambition to achieve net-zero emissions (Scope 1 and 2) from all operated assets by 2050.
Flexible skills for a range of energy solutions
We’re excited about the growth and opportunity we see ahead for Guyana. With the most recent discoveries announced last week, we’ve discovered the equivalent of nearly 11 billion barrels of recoverable oil on behalf of the people of Guyana and our co-venturers in the Stabroek Block1. That’s more than 10% of all the new conventional resources discovered anywhere in the world between 2015 and the end of last year.
The strengths that have enabled our success in Guyana – our scale, advanced technologies, integration, operations excellence and highly skilled people – also position us to lead in the energy transition.
For nearly 140 years, ExxonMobil has supplied products that help people live healthy, prosperous lives and thrive in an ever-changing world. We’re committed to continuing to create sustainable solutions that improve quality of life and meet society’s evolving needs.
