$9.5 billion, sold to ConocoPhillips. I though MW told us that the Permian was the answer to everything - why is Shell getting out?
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Fiscal restraint in the domestic oil and gas industry? Lol, good one.
CVX has huge Permian that it has opened for decades. No need to pay $10 billion to get into the party late. Slow and steady wins the race.
Chevron would not know what to do in the Permian. The people that understood the asset and business of this play were all forced out or got disillusioned and left. We replaced them with people on bikes with training wheels and used the asset as a training ground for politicians and wannabes. Chevron is not capable of competing in this asset class anymore.
It's possible the new strategy will be stable, modest production for most majors in shale. Maintaining stable US production levels with just small amounts of production growth to support financial performance might help to keep oil prices at reasonable rates. in the past, too many companies borrowed and spent like they hit the lottery leading to a glut of US oil. Bo-m and bust cycles could be trimmed somewhat, maybe not eliminated, but evened out a little. Stop bringing on 30 rigs and blowing through cash like a drunken sailor. Steady rig counts to offset existing production decline with a few more to add a moderate amount of production growth seems like a better strategy.
This is good to see. It would have been scary to see MW try and buy more Permian assist. This shows that he now knows that it’s a Ponzi scheme and we will stop throwing the our money away on the shale plays
They are after clean energy and to abide the recent Dutch court order, they are pulling back just like BP. Only time will tell if this strategy pays off or not,most likely not in short term but possibly in mid to long term if they invest well and are lucky they will be "winning in any environment".
The Cloggie’s don’t understand Texas oil bidness!
(PS)^2 = Permian Shale Ponzi Scheme