ExxonMobil Q3 natural gas volumes decline on liquids-rich focus

01 November 2012 18:35  [Source: ICIS news]

HOUSTON (ICIS)--ExxonMobil’s third-quarter natural gas volumes declined by about 5% from the second quarter of 2012, mainly because of the shift from drilling gas plays to liquid plays, a company executive said on Thursday.

Despite some impact from weather-related activity, including Hurricane Isaac, weather was not the biggest factor in ExxonMobil’s US natural gas production decline.

In its third quarter earnings, the company said it is continuing its focus on high-potential, liquids-rich opportunities, including nearly 600,000 net acres in the Bakken shale and an agreement to acquire 649,000 net acres in the Montney and Duvernay shales in western Canada.

“[T]he impact you are seeing as we are shifting rigs from drilling primarily gas plays to drilling liquid focus plays and so the total rig count is down across the year, and the proportion that’s drilling liquids-rich plays versus gas has gone up,” a company executive said during the earnings conference call.

Overall, ExxonMobil’s third-quarter earnings fell by 7.4% year on year to $9.57bn (€7.4bn), partly because of lower production volumes and lower liquids and natural gas realisations, it said.

($1 = €0.77)

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By: Anna Matherne

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