How Will Exxon Mobil’s Production Progress In The Next Five Years?

+11.07%
Upside
115
Market
127
Trefis
XOM: Exxon Mobil logo
XOM
Exxon Mobil

Since mid-2014, commodity prices across the globe have been on a downhill spree, due to the mismatch between the demand and supply of commodities, particularly crude oil. Lower commodity prices have resulted in weak price realizations for oil and gas companies, forcing these companies to restrict their exploration and drilling activities. This, in turn, has caused a notable drop in their production as well as their revenues over the last two years. Below, we show how Exxon Mobil‘s upstream production has been hit by the ongoing slump.

XOM-Q&A-12-1

Based on the current market trends and our estimates, we expect the crude oil prices to average at around $50 per barrel by the end of 2016. As a result, we forecast Exxon Mobil’s production to remain weak in the second half of this year. However, we expect commodity prices to improve gradually over the next five years, resulting in a steady improvement in Exxon Mobil’s production.

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Have more questions about Exxon Mobil (NYSE:XOM)? See the links below:

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Exxon Mobil

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