ExxonMobil is planning to tripe its crude oil production capacity in the Permian Basin by 2025 and expand its transportation infrastructure.
The firm intends to reach daily production capacity to more than 600,000 oil-equivalent barrels from its operations in the Permian Basin in West Texas and New Mexico, by 2025.
ExxonMobil said that its tight oil production from the Delaware and Midland basins will be increased five-fold by that year.
In order to boost its Permian operations, the oil firm plans to invest more than $2bn on Wink terminal and add key infrastructure upgrades.
The expansion of crude storage terminal is expected to help the firm to effectively handle Permian crude oil and condensate supply to Gulf Coast refineries and marine export terminals.
ExxonMobil XTO Energy subsidiary president Sara Ortwein: “Our geographic and competitive advantages in the Permian position the company for strong growth and long-term value creation.
“We can deliver profitable production at a range of prices, and we have logistics and technology advantages over our competitors.”
The company said that the increased volumes will be driven by reduced drilling costs, technology improvements and expanded acreage.
Ortwein added: “With this production growth, we are well positioned to maximize value as increased supply moves from the Permian to our Gulf Coast refineries and chemical facilities where higher-demand, higher-value products will be manufactured.”
As part of the new expansion effort, ExxonMobil plans to increase the horizontal rig count in the Permian to a further 65% over the next several years.
The firm said that the expanded production capacity will provide low-cost supply and feedstocks to its downstream and chemical operations in Baytown, Beaumont and Mt. Belvieu, Texas, and Baton Rouge, Louisiana, US.
As a result, the firm will have the capacity to meet growing demand for high-performance plastics and advanced synthetic lubricant base stock products.
In a blog post, ExxonMobil chairman and CEO Darren Woods said that the company will invest $50bn over the next five years to expand its business in the US.
Woods said: "The recent changes to the U.S. corporate tax rate coupled with smarter regulation create an environment for future capital investments and will further enhance ExxonMobil’s competitiveness around the world."