US-based oil majors Chevron and ExxonMobil are set to refocus their efforts closer to home as they concentrate on their operations in the Permian Basin and other oil and gas projects in North and South America.
The past year has seen both companies withdraw from non-American assets. In Thailand and Indonesia, Chevron’s concession agreements expired, while ExxonMobil exited its Russian Sakhalin-1 oil project in response to Russia’s invasion of Ukraine. ExxonMobil is also looking to divest some of its African assets, while Chevron has already sold some assets in places like Denmark, the UK and Brazil.
Instead, ExxonMobil will direct 70% of its capital expenditure to projects in the Permian Basin, Brazil and Guyana, as well as some LNG projects further afield. ExxonMobil believes it can generate at least 10% returns on most of these new projects at oil prices as low as $35 per barrel. The Permian Basin will also continue to be a priority growth area for Chevron, with more than $4 billion being earmarked for developing projects there alone. A further $2 billion has been allocated for other shale and tight projects, as well as a sizeable sum for offshore projects in the Gulf of Mexico.
While ExxonMobil and Chevron may be shifting more production to the Americas, both companies remain leading global suppliers of lubricant products. At TrAchem, we’re pleased to offer products like the Mobil DTE hydraulic oils and Texaco Meropa gear lubricants, so contact our expert team to learn more.