Thursday, April 6, 2017

The Market And Energy Page, T+75 -- April 6, 2017

Yahoo!Finance banner: 7-Eleven buys Sunoco stores; Costco sales jump. 

WTI: solidly above $51, again.

Staggering: I've always liked this graph; I've seen it before but have never posted it. Via twitter:


Chevron pivots to Permian. Mega-project era fades -- Reuters. Data points:
  • Chevron is "hitting the accelerator on developing the company's vast Permian Basin holdings
  • plans to make the Permian one of Chevron's biggest ventures
  • some of the best things in Chevron's portfolio: shale -- the CEO
  • their Permian has been owned a long time; free of royalties to landowners
  • owning this land outright gives Chevron a cost advantage over rival Permian producers
  • within the next decade, plans to grow the Permian eightfold to more than 700,000 bopd
  • by the end of 2018, will add 9 more rigs to the already 11 rigs it has in the Permian 
  • total recoverable reserves: more than 9 billion bbls; almost all of it owned outright by the company
  • market value estimated to be $43 billion (CEO's estimate): makes it more valuable than other Texas producers
  • Chevron does not hedge oil production
  • will boost spending in the Permian by 67% to $2.5 billion
  • no concern about peak oil demand for at least the next 20 years -- CEO

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