Friday 21st October 2016                 Change text size:

ExxonMobil unveils 10 new oil and gas projects – as MPs warn of ‘carbon bubble’ risks

Minale Tattersfield via Flickr

Oil giant ExxonMobil has unveiled plans for 10 major new oil and gas projects in Russia, Canada, the Gulf of Mexico and Papua New Guinea, which will increase its capacity by around 300,000 net oil equivalent barrels per day in 2014.

The announcement comes as a report by MPs on the UK’s environmental audit committee warned about the overvaluation of ‘unburnable’ existing fossil fuels reserves that need to be left in the ground to comply with climate change goals.

Some of the planned Exxon projects include a liquefied natural gas project in Papua New Guinea, an offshore oil and gas platform in Russia, a deepwater project in the Gulf of Mexico and the expansion of existing platforms in Canada.

Rex W Tillerson, CEO of the oil giant, said in New York, “These projects exemplify our focus on maintaining a diversified portfolio and highlight our ability to grow profitable volumes. 

“We are adding new volumes that improve our profitability mix with higher liquids and liquids linked natural gas volumes. We’re also driving increased unit profitability through better fiscal terms and reducing low-margin barrel production.”

Other start-up projects are planned in Australia, Indonesia, Canada, Nigeria and the US as well. Together, these will result in around 1 million net oil equivalent barrels per day by 2017, according to the firm.

Tillerson added, “We have financial flexibility to pursue potential strategic opportunities and maintain a disciplined and selective approach to capital that ensures any new investment will contribute to robust cash flow growth.

ExxonMobil also announced a capital spending decline in 2014 to $39.8 billion from $42.5 billion in 2013. The company was among those energy firms reporting falling profits in November.

Further reading:

Oil giants Shell, Total and Exxon report falling profits in Q3

Investors worth $3tn put pressure on fossil fuels industry to rethink future

MPs issue stark ‘carbon bubble’ warning to investors and finance world

Shell investors urged to take action on ‘high-risk’ Arctic drilling

Warren Buffett buys $3.7bn Exxon Mobil stake

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