In a presentation to analysts at the New York Stock Exchange today, Exxon Mobil Corp. (NYSE: XOM) Rex Tillerson said that the company would see a production decline of -3% in 2012, compared with 2011. The decline comes from the company’s conventional base production and is partially offset by unconventional production increases.
Exxon grew production by 1% in 2011, to 4.5 million barrels of oil equivalent/day (MBOE). The production forecast is based on an average price for Brent crude of $111/barrel in 2012.
The company also said that it would spend about $185 billion in capital expenditures over the next five years, or about $37 billion/year. The spending is intended to bring another 1 MBOE into productionb by 2016.
Liquids production is expected to rise by 2%-3% by 2016, while natural gas production is forecast to rise 0.5%-1% in the same period. No surprise there as the price of liquids far outstrips the price of natural gas.
Exxon’s share price has fallen about -1% today, to $84.98 in a 52-week range of $67.03-$88.13.
A copy of Exxon’s presentation is available here.
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