Exxon Mobil on Tuesday said it will triple its production of oil and chemical feedstocks in one of the most productive shale basins in the United States and expand infrastructure to bring those products to market by 2025.
The announcement came one day after the world's largest publicly listed oil company said it would ratchet up its U.S. investments to $50 billion over the next five years, in part due to the benefit of recent U.S. tax cuts.
The Irving, Texas-based oil major said it plans to increase total daily production in the U.S. Southwest's Permian Basin by 600,000 barrels of oil equivalent, a measure of crude, natural gas and other product output. In 2016, Exxon's total output was 4.1 million barrels of oil equivalent per day.
Exxon expects crude oil production alone to increase five-fold in the Permian, which runs beneath western Texas and eastern New Mexico. Last year, Exxon doubled its Permian holdings through the $5.6 billion acquisition of companies owned by the Bass family.
"Our geographic and competitive advantages in the Permian position the company for strong growth and long-term value creation," Sara Ortwein, president of Exxon's shale oil and gas subsidiary XTO Energy, said in a statement. "We can deliver profitable production at a range of prices, and we have logistics and technology advantages over our competitors."