Rising Costs and Falling Capital Productivity Have Fundamentally Changed Return Profile

We produced 39 barrels of oil equivalent (boe) per $1,000 USD of capital employed in 2001, 20 boe by 2009, and a mere 8 boe by 2020. This ~80% decline in capital productivity (a metric that is not impacted by prices) over two decades along with highly aggressive spending have led to poor returns

ExxonMobil - Upstream Production (BOE) per thousand dollar of Upstream Capital Employed
2001 - 38.8
2005 - 27.9
2009 - 19.6
2013 - 10.0
2016 - 8.7
2020 - 7.9

Source: ExxonMobil 10-Ks. Upstream Productivity Calculated by Dividing Annual Oil Equivalent Production by Average Upstream Capital Employed
ReEnergize ExxonMobil Slide Deck page 39

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Will we borrow more money for dividends this year?
Is that what you are saying?

I'd say the majority of our Capital is over 50 years old and already written off.
Whatever steam and mud we inject for product, in whatever business line, is more publicity at this point. Nothing shiny.
Commodity company.
Pork bellies.
Leaves of grass.

The barrels of oil equivalent per $1000 USD CAPEX plot does not depend on the price of crude. What the graph shows is that we are spending 4x more CAPEX $$ in 2020 for the same amount of oil produced in 2001.

The large $$$ upstream projects that get funded don't produce instantaneously... Also did you group together all the other business lines? lol

Thread regarding ExxonMobil Corp. layoffs

Rising Costs and Falling Capital Productivity Have Fundamentally Changed Return Profile

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