Higher-than-expected production in Guyana adds to Exxon’s record profits
More barrels of oil were produced in the prolific Stabroek Block offshore Guyana last year and this, in part, contributed to United States (US) oil giant ExxonMobil’s record profits for 2022.
On Tuesday, ExxonMobil announced that it earned US$55.7 billion in 2022. This is a massive increase of US$32.7 billion from the US$23 million earned for 2021.
The company reported that factors impacting this substantial increase include increased production, the recovered demand for oil and gas, tight supply of those resources, structural cost savings and growth of assets.
Importantly, it was noted that production in Guyana and Permian Basin increased year-over-year by over 30 per cent.
“…oil-equivalent production grew by about 170,000 barrels per day from continued investment in advantaged growth projects in the Permian and Guyana.
“Production in the Permian grew about 90,000 oil-equivalent barrels per day and Guyana production grew about 70,000 oil-equivalent barrels per day with Liza Phase 2 starting up ahead of schedule and both Liza Phase 1 and 2 producing above the investment basis,” a release from ExxonMobil noted.
Divestments and the Sakhalin-1 expropriation, however, unfavourably impacted earnings.
“While our results clearly benefited from a favourable market, the counter-cyclical investments we made before and during the pandemic provided the energy and products people needed as economies began recovering and supplies became tight.
“Our plan for 2023 calls for further progress on our strategic objectives, which include leading the industry in safety, operating, and financial performance.
“We will continue to invest in our advantaged projects to deliver profitable growth, help meet society’s growing needs, and reduce emissions in our operations, while providing innovative solutions that help others reduce theirs,” ExxonMobil’s Chairman and Chief Executive Officer Darren Woods was quoted as saying.
While ExxonMobil recorded these massive profits, the US White House has expressed its outrage given the high cost of oil prices consumers paid at the pumps.
“The latest earnings reports make clear that oil companies have everything they need, including record profits and thousands of unused but approved permits, to increase production, but they’re instead choosing to plow those profits into padding the pockets of executives and shareholders while House Republicans manufacture excuse after excuse to shield them from any accountability,” the White House said in a statement.
Reuters reported that US President Joe Biden has blasted oil companies and refiners for much of the last year for enjoying surging profits as gasoline prices soared.
In June, Biden wrote to executives of major oil refiners and complained they had cut back on production to pad profits, according to a copy of a letter seen by Reuters.