Exxon Aims for $15-a-Barrel Costs in Giant Permian Operation
- Scale is key to 1 million-barrel-a-day target, Gjervik says
- Oil major sees overall Permian production doubling by 2025
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Exxon Mobil Corp. plans to reduce the cost of pumping oil in the Permian to about $15 a barrel, a level only seen in the giant oil fields of the Middle East.
The scale of Exxon’s drilling means that it can spread its costs over such a big operation that the basin will become competitive with almost anywhere in the world, Staale Gjervik, president of XTO Energy, the supermajor’s shale division, said in an interview.