Searching for smart, safe news you can TRUST?

Support safe, smart, REAL journalism. Sign up for our Axios AM & PM newsletters and get smarter, faster.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Searching for smart, safe news you can TRUST?

Support safe, smart, REAL journalism. Sign up for our Axios AM & PM newsletters and get smarter, faster.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Eric Piermont/AFP/Getty Images

ExxonMobil's mammoth discovery off Guyana's coast has grown even bigger — the deepwater Stabroek block is now estimated to contain 4 billion barrels of recoverable oil, the company announced Monday.

Why it matters: The new estimate (its prior estimate was 3.2 billion barrels) is a bright spot for Exxon, and a key part of Exxon's long-term recovery strategy. The last several years have been an atypically difficult stretch for the company, including a stock price plunge earlier this year with only partial recovery, and it has struggled to grow production even as crude prices have come back.

Context: In recent years, ExxonMobil has been dinged by some bad bets and low prices that undercut its large Canadian oil sands holdings, and has seen projects in Russia — long-planned as a key source of future supply — frozen by sanctions.

The intrigue: The expanded estimate comes amid a broader plan by Exxon to spend aggressively in coming years on finding and developing new oil-and-gas supplies from multiple regions, including U.S. shale.

  • Exxon is planning substantial investments in new supplies as part of a plan rolled out in March to double its earnings to $31 billion annually by 2025.

The details: Exxon said yesterday that it hopes to be producing — along with partners Hess and China's CNOOC — up to 750,000 bpd in Guyana by 2025.

  • That's two years sooner than previously announced to reach that level, and Exxon said it could grow even more.
  • "There is potential for additional production from significant undrilled targets and plans for rapid exploration and appraisal drilling," Exxon said Monday.
  • The company plans to start producing 120,000 barrels per day in early 2020.

What they're saying: Ruaraidh Montgomery, an analyst with the consultancy Wood Mackenzie, tells Axios that the higher resource estimate was expected but welcome news for Exxon, and he expects more resource additions. This will mean investors will be looking for a delivery on these promises, he added.

"The accelerated production outlook is the more interesting part of the announcement as it’s quite aggressive. Of course [Exxon] has has a good project execution track record, but the target is ambitious," he said.

The big picture: More broadly, oil experts say that amid all the focus on U.S. shale production in Texas and elsewhere, development of big fields in frontier areas will be needed to ensure sufficient global supplies during the next decade and beyond. And Exxon's Guyana finds are some of the world's largest in recent years.

What's next: Company officials could provide more details about the plan when Exxon announces its Q2 results and holds a call with analysts on Friday.

Go deeper: Over the weekend, the New York Times ran a deep dive on the project and what it means for Guyana, the South American country that's poised to become the world's newest petro-state.

Go deeper

Michigan board certifies Biden's win

Poll workers count absentee ballots in Detroit, Michigan on Nov. 4. Photo: Salwan Georges/The Washington Post via Getty Images

The Michigan Board of State Canvassers certified the state's election results on Monday, making President-elect Joe Biden's win there official and granting him the state's 16 electoral votes.

Why it matters: Republican Party leaders had unsuccessfully appealed to delay the official certification, amid the Trump campaign's failed legal challenges in key swing states.

Biden to nominate Janet Yellen as Treasury secretary

Photo: Photo by Alex Wong/Getty Images

President-elect Joe Biden is preparing to nominate former Fed Chair Janet Yellen as his Treasury Secretary, four people familiar with the matter tell Axios.

Why it matters: Yellen, 74, will bring instant economic celebrity to Biden’s team and, if confirmed, she will not only be the first female Treasury Secretary but also the first person to have held all three economic power positions in the federal government: the chair of Council of Economic Advisers, the chair of Federal Reserve and the Treasury Secretary.

3 hours ago - Podcasts

Bob Nelsen on AstraZeneca and his plan to revolutionize biotech

AstraZeneca and the University of Oxford on Monday reported promising efficacy data for their COVID-19 vaccine, which has less stringent storage requirements than the Pfizer and Moderna vaccines and may be distributed earlier in developing countries.

Axios Re:Cap digs into the state of vaccine and therapeutics manufacturing with Bob Nelsen, a successful biotech investor who on Monday launched Resilience, a giant new pharma production platform that he believes will prepare America for its next major health challenges.