New sources needed to meet unprecedented global demand
NEW YORK—Over the next five years ExxonMobil is going to invest about US$185 billion to develop new supplies of energy, Rex W. Tillerson, the company’s chairman and CEO, announced this morning at the New York Stock Exchange.
“An unprecedented level of investment will be needed to develop new energy technologies to expand supply of traditional fuels and advance new energy sources,” he said. “We are developing a diverse portfolio of high-quality opportunities across all resource types and geographies.’
By 2040, ExxonMobil predicts global demand for energy will rise by 30 per cent compared to 2010, and natural gas will be the fastest growing energy source due to this increased demand for electricity. Over the next 30 years, the company says 60 per cent of energy needs will be met by natural gas and oil.
Between 2012 and 2014, 21 major oil and natural gas projects will begin production with nine major upstream projects starting between 2012 and 2013. These include the Kearl oil sands project in Alberta, four in West Africa and Kashagan Phase 1 in Kazakhstan. The company predicts these projects will produce over one million net oil-equivalent barrels per day by 2016.
In the downstream, the company completed a large project at its Thailand refinery in 2011, which is expected to increase the supply of lower sulphur motor fuels by more than 50 thousand barrels per day. It is also has new projects underway, including new facilities at its Singapore refinery and at a joint-venture refinery in Saudi Arabia.
Additionally, ExxonMobil has nearly finished expanding its Singapore chemicals facilities. When completed, it will provide 2.6 million tonnes per year of additional capacity. Commissioning and startup activities are expected to continue through 2012. .