After announcing record profits for 2022Q2, oil majors Exxon Mobil and Chevron said they will remain disciplined about production in Permian Basin this year with moderated growth. Houston-based Exxon Mobil reported $17.9 billion in profits for 2022Q2, and San Ramon-based Chevron reported $11.6 billion. Factors aiding the companies include increased demand for oil after the global pandemic and oil prices climbing above $100 a barrel after Russia’s invasion of Ukraine.
Exxon Mobil said it plans to increase production in Permian by 25 percent over last year, and Chevron said 2022 output has increased 15 percent since last year.
Exxon Mobil CEO Darren Woods said, “The plan that we laid out some time ago, and we’re currently executing, hasn’t changed. We had a very slight ramp up as we head through the year, but nothing’s significantly different than what we’ve been doing. The plans that we have in place should deliver.”
Chevron vice president Jay Johnson said, “Our approach to the Permian … for many years has been to be very disciplined, very focused on generating the returns and the efficiency that allow us to be profitable regardless of the prices. So we’re not responding to short term price.”