Home / Business and Economy / Exxon's Output Faces War Woes
Exxon's Output Faces War Woes
1 May
Summary
- Exxon may revise full-year output guidance due to war impact.
- Guyana and Permian Basin production offset Middle East losses.
- Qatari LNG facilities sustained severe damage from missile strikes.
Exxon Mobil Corp. may adjust its full-year production guidance, which had projected 4.9 million barrels daily, due to escalating Middle East conflict disrupting energy markets. This situation prevents the sale of crude and liquefied natural gas from the affected region.
Despite these challenges, Exxon reported a stronger-than-expected first quarter, with output from Guyana and the Permian Basin compensating for supply losses. Higher energy prices contributed significantly to earnings, outweighing war-related production disruptions. Approximately 15% of Exxon's worldwide output remains offline.
The conflict also poses long-term problems. Exxon holds stakes in Qatari liquefied natural gas operations that suffered severe damage in March, with repairs potentially taking up to five years and costing billions. This has resulted in about 800,000 barrels of daily output being offline.
Exxon continues to mitigate losses through production ramp-ups in Guyana, the Permian Basin, and the US Gulf Coast, and by benefiting from higher prices for non-Middle East production. The company also repurchased $4.9 billion of shares during the quarter and affirmed its intention to repurchase $20 billion this year.
