US oil major ExxonMobil has become the latest organisation to announce an upgrade to its refinery capacity to handle increasing crude oil production in the Permian Basin.
According to the US Energy Information Administration (EIA), the Permian Basin of Texas and New Mexico has the highest oil production of any region in the US, with this expected to grow by a further 26,000 barrels per day (bpd) in April. It is also second only to the Appalachia region for the production of natural gas, with this also set to grow.
Both Chevron and ExxonMobil, the makers of the Texaco and Mobil lubricant ranges, have previously announced investments for increased production in the Permian Basin. This had been followed up recently by announced increases to their refining capacity. ExxonMobil has said it will invest $2 billion in boosting capacity at its Beaumont, Texas refinery by a quarter of a million bpd.
ExxonMobil Product Solutions’ president, Karen McKee, said that with Russia being largely excluded from the global market and the world’s economies picking up after the COVID-19 pandemic, the upgrade at Beaumont would help ExxonMobil to meet the increasing demand for US oil, adding:
“The new crude unit enables us to produce even more transportation fuels at a time when demand is surging. 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.”
Chevron, meanwhile, recently announced a 125,000-bpd upgrade to its refinery in Pasadena, Texas, citing increasing Permian production as the driving factor.