Apache Oil Co. Drilling Near Davis Mountains
Introduction…A major oil company does big on US shale drilling. Here’s why.
Exxon goes big on U.S. shale. New ExxonMobil (NYSE: XOM) CEO Darren Woods gave his first presentation to investors this week, where he outlined a strategy to step up investment in U.S. shale.
Exxon will allocate a quarter of its 2017 budget to short-cycle shale projects. The move will help the oil major navigate an uncertain market, as cash can be returned to the company much quicker from shale drilling than it can from the major offshore projects that Exxon has long been accustomed to.
Still, Exxon will move forward aggressively on its large offshore discovery in Guyana, hoping to bring it online in the next few years.
Conclusion…It’s quicker positive cash flow that brings ExxonMobil to shale oil production. Even a company this big wants a quicker return on its capital expenditures.