Tag Archive for: oilindustry

The US oil industry is now in a post-boom era, focusing on smart growth aligned with demand rather than rapid expansion.

Last year, U.S. oil industry or crude oil production broke another record. This in itself is not exactly news. The shale oil industry has been breaking records for breakfast for years. But that was before the pandemic.

After the pandemic, many pronounced the shale boom dead. Of course, those same people found out in 2023 that this wasn’t strictly true. Despite a continued focus on capital discipline and the flurry of cash they returned to shareholders, U.S. drillers managed to boost their overall output to over 13.2 million barrels daily in September. And they did it with fewer rigs, at that. And with zero—if not negative—support from the federal government.

“Smart money knows to never bet against this industry,” Tim Stewart, President of the US Oil & Gas Association, recently told David Blackmon, energy industry vet and Forbes author. “We are going to be around a lot longer than any politician. Why is that? Because we produce wealth while they produce nothing.”

Indeed, if 2023 proved anything that many may have suspected, it was that an industry does not need a friendly government to flourish—at least when it comes to the oil industry, that is. Alternative energy industries, on the other hand, do need government support to survive.

 

Click here to read the full article
Source: Oil Price

If you have any questions or thoughts about the topic, feel free to contact us here or leave a comment below.

Occidental Petroleum will buy Permian oil and gas producer CrownRock for cash and stock in a deal valued at around $12B, including debt.

Permian Oil and Gas Producer CrownRock

Occidental Petroleum will buy Permian oil and gas producer CrownRock. For cash and stock in a deal valued at around $12 billion, including debt, Oxy said on Monday. Announcing the latest large acquisition in the U.S. oil industry.

Reports of a potential Occidental- CrownRock transaction will appear at the end of last month. When the Wall Street Journal announce that a deal would be estimate at more than $10 billion including debt.

Occidental confirmed those reports today with the news that it has entered into a purchase agreement to buy CrownRock, whose over 94,000 net acres of premium stacked pay assets and supporting infrastructure “are well positioned alongside Occidental’s legacy Midland Basin business.”

170,000 Barrels of Oil Equivalent Per Day

The acquisition will boost Occidental’s premier Permian portfolio. With the addition of around 170,000 barrels of oil equivalent per day (boed) of high-margin. Lower-decline unconventional production in 2024, as well as approximately 1,700 undeveloped locations.

It’s also look forward to deliver increased free cash flow on a diluted share basis, including $1 billion in the first year based on $70 per barrel WTI price.

The transaction is looking forward to close in the first quarter of 2024, subject to customary closing conditions and the receipt of regulatory approvals.

Click here to read the full article
Source: Oil Price

If you have any questions or thoughts about the topic, feel free to contact us here or leave a comment below.

 

OPEC+ still has a positive outlook for growth in oil demand, despite the headwinds faced by the global economy, as it prepares for its next ministerial meeting.

Oil Demand Growth

OPEC+ still has a positive outlook for oil demand growth, despite the headwinds faced by the global economy, as it prepares for its next ministerial meeting.

“The economy, despite the challenges, is still doing quite well,” OPEC Secretary-General Haitham Al-Ghais said at the Argus European Crude Conference in London on Tuesday. “We are positive on demand, we’re still quite robust on demand.”

oil-demand-growth-opec-december-7-2018-reuters

Has Expressed Uncertainty

The top official at the Organization of Petroleum Exporting Countries (OPEC) has expressed uncertainty regarding the outcome of the group’s upcoming ministerial meeting, scheduled to take place in the final weekend of November. In a press statement, the official emphasized that it would be premature to make any definitive predictions or preempt the decisions that will be made during the meeting. This uncertainty regarding the outcome of the ministerial meeting reflects the complex and ever-evolving dynamics of the global oil market and the diverse interests of OPEC member countries.

Highlights the Organization’s Commitment

The statement made by the top OPEC official highlights the organization’s commitment to a consultative and consensus-driven decision-making process. OPEC, comprised of 13 member countries, plays a crucial role in shaping global oil prices and supply levels. The ministerial meetings serve as a platform for member countries to discuss and negotiate production quotas and strategies to stabilize the oil market. As such, these meetings often involve extensive deliberations and negotiations to reach a consensus that accommodates the interests of all member nations. Therefore, the official’s cautious approach in refraining from preempting the meeting’s outcome underscores the complexity and importance of the discussions that will take place amongst OPEC members.

Click here to read the full article
Source: Bloomberg

If you have any questions or thoughts about the topic, feel free to contact us here or leave a comment below.