In a move set to redefine the energy landscape, ExxonMobil and Pioneer have finalised their merger, forming a powerhouse poised to dominate the Permian Basin.
This merger creates an entity with the largest, high-return development potential in one of the world’s most prolific oil regions.
The combined company boasts an impressive 1.4 million net acres in the Delaware and Midland basins, estimated to hold a staggering 16 billion barrels of oil equivalent resource.
The merger will significantly boost ExxonMobil’s Permian production, more than doubling it to 1.3 million barrels of oil equivalent per day (MOEBD) based on 2023 volumes.
Projections indicate this figure could soar to approximately 2 MOEBD by 2027.
Chairman and CEO of ExxonMobil, Darren Woods, emphasised the natural synergy between the two companies, stating: “This premier, tier-one asset is a natural fit for our Permian portfolio and gives us a greater opportunity to deploy our technology and deliver operating and capital efficiency for long-term shareholder value.”
One of the key drivers behind the merger is the combination of Pioneer’s expertise in the Permian Basin with ExxonMobil’s proprietary technologies and financial resources.
This synergy is expected to generate double-digit returns by recovering more resources efficiently and with a significantly lower environmental impact.
Speaking of environmental impact, ExxonMobil has committed to industry-leading plans to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions from its Permian unconventional operations by 2030.
With the merger now finalised, ExxonMobil plans to accelerate Pioneer’s Scope 1 and 2 net-zero emissions goal by an impressive 15 years.
Furthermore, the company aims to reduce methane emissions by applying its industry-leading technologies for monitoring, measuring, and addressing fugitive methane.
By leveraging combined operating capabilities and infrastructure, ExxonMobil aims to increase the amount of recycled water used in its Permian fracturing operations to over 90 per cent by 2030.
“This combination benefits not only our country’s energy security and economy but also furthers society’s environmental ambitions,” noted Darren Woods, highlighting the alignment of this merger with Pioneer’s accelerated net-zero goal, now set for 2035.
As the energy sector undergoes rapid transformation, the ExxonMobil and Pioneer merger stands out as a bold step towards a more sustainable and efficient energy future, setting a new standard for the industry.
