Feb 27, 2019

ExxonMobil makes a huge add to its oil reserves

Photo: Kena Betancur/VIEWpress/Corbis via Getty Images

ExxonMobil said it added 4.5 billion barrels of oil equivalent to its proven reserves last year, which is over three times what the multinational giant produced in 2017.

Why it matters: The strong performance represents a major bounce back from some high-profile struggles, notably in 2016 when Exxon was forced to cut reserves by over 3 billion barrels.

  • It also beats their result from the prior year, when the company added enough to replace 183% of annual production.
  • Proven reserves are essentially a metric of what a company can take from the ground under current economic conditions and methods.

The intrigue: The breakdown of the increase also tells a story of Exxon's positioning as it seeks to drive up production sharply over the next half-decade.

  • "Exxon has been struggling to arrest production declines over the past two years after a series of strategic mistakes over the past decade," Bloomberg notes.
  • The company added volumes in the Permian basin, a sign of its growing footprint in shale.

What to watch: Another 1.3 billion primarily came from big offshore fields in Brazil and Guyana. Exxon made huge finds in Guyana and hopes to be producing 750,000 barrels per day there by 2025.

Go deeper: Exxon mulling investing in electric-vehicle charging

Go deeper

Situational awareness

Photo: Scott Olson/Getty Images

Catch up on today's biggest news:

  1. Warren supporters form super PAC
  2. We may be on "the brink" of coronavirus pandemic
  3. Pentagon policy chief resigns
  4. National polls show Bernie in control ahead of Nevada
  5. How a Chinese think tank rates all 50 U.S. governors
  6. Sanders and Bloomberg battle over heart health

Trump has declared war on sanctuary cities

Illustration: Sarah Grillo/Axios

Armed with subpoenas, lawsuits and immigration SWAT teams, the Trump administration has declared war on sanctuary cities.

The big picture: President Trump and his administration have used every available tool to try to crack down on local governments that refuse to hold immigrants in criminal custody, block immigration agents from working in county jails or deny federal authorities access to immigrants' records.

Peter Thiel's Founders Fund isn't really Peter Thiel's Founders Fund

Illustration: Photo Illustration: Eniola Odetunde/Axios. Photos: Charles Eshelman, Steve Jennings, and Chip Somodevilla/Getty Images

Founders Fund has raised $3 billion for a pair of new funds, so expect a slew of headlines about how "Peter Thiel's venture capital firm" is now flush with cash.

Behind the scenes: Thiel is essential to Founders Fund, but he's not autocratic. Instead, Axios has learned that he's one of three people with veto power over most FF investments, and is unable to do a deal without approval of the other two.