(Source: Exxon Mobil Corp.)
Exxon Mobil Corp. has started up operations on a new light crude distillation unit at the company’s Beaumont refining complex as it begins to process increasing production from its Permian Basin leasehold, the company said March 16.
The company expects Permian net production to reach more than 600,000 boe/d this year, Exxon Chairman and CEO Darren Woods said during the company’s fourth-quarter earnings report in January. The new unit is able to process the Permian’s light crude. The company aims to scale production in the basin by up to 1 million boe/d by 2027.
The oil and gas supermajor Beaumont expansion boosts the company’s refining capacity by more than 65%, or 250,000 bbl/d.
The $2 billion expansion project, initiated in 2019, raises Beaumont’s total processing capacity to more than 630,000 bbl/d, the company said. That positions Exxon’s Beaumont refinery as the second largest in the U.S., ranking only behind the 636,500-bbl/d Port Arthur refinery owned by Motiva Enterprises, a wholly owned affiliate of Saudi Aramco.
“The new crude unit enables us to produce even more transportation fuels at a time when demand is surging,” said Karen McKee, president of Exxon’s Product Solutions segment, in a news release. “This expansion is the equivalent of a medium-sized refinery and is a key part of our plans to provide society with reliable, affordable energy products.”
Exxon’s crude from the Permian is refined at the Beaumont complex and manufactured into products including diesel, gasoline, jet fuel and other intermediate products and feedstocks.
Exxon’s total refining throughput was 4 million bbl/d in 2022, the company’s highest levels globally since 2012 and Exxon’s best-ever refining throughput in North America.
Exxon reached a final investment decision on the expansion project in 2019, and 1,700 contractors were involved in the development process. The company hired over 50 full-time employees to operate the expanded refining complex, bringing Exxon’s total employees in the Beaumont area up to approximately 2,100.
Recommended Reading
On The Market This Week (Jan. 20, 2025)
2025-01-24 - Here is a roundup of marketed oil and gas interests in the Delaware Basin, Midcontinent and Bakken from select sellers.
Diamondback Acquires Permian’s Double Eagle IV for $4.1B
2025-02-18 - Diamondback Energy has agreed to acquire EnCap Investments-backed Double Eagle IV for approximately 6.9 million shares of Diamondback and $3 billion in cash.
Elk Range Acquires Permian, Eagle Ford Minerals and Royalties
2025-01-29 - Elk Range Royalties is purchasing the mineral and royalty interests of Newton Financial Corp., Concord Oil Co. and Mission Oil Co.
LS Power Completes Acquisition of Algonquin Power’s Renewables Unit
2025-01-09 - With the transaction’s closure on Jan. 8, LS Power formed Clearlight Energy to manage the acquired renewable energy assets.
Consultancy Xodus Buys Daymark Energy Advisors
2025-03-04 - Xodus’ acquisition of Daymark Energy Advisors will strengthen the company’s expertise in the energy transition and the power and transmission of electricity.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.