Tight Oil / Shale -- Drive Majors' Output To New Highs -- Rigzone -- October 16, 2018

This is really quite amazing.

From 2000 (Montana) to 2007 (North Dakota) and then through 2012 (height of the boom) it was all about small private companies and small to medium-size publicly-traded companies.

The poster child for the Bakken: Harold Hamm.

Now, eighteen years into the US shale revolution, Rigzone is reporting that the majors are now reporting new production records -- due to tight oil / shale oil. Amazing, when you think about it.

Memo to self: note to Jane Nielson.

From the linked article:

U.S. unconventionals will be crucial for oil majors in the near future – and the majors are taking note.

In a new report released by Wood Mackenzie, the potential of unconventionals in the Lower 48 is examined by looking at five U.S. majors (BP plc, Chevron Corp., Equinor ASA, Exxon Mobil Corp. and Royal Dutch Shell plc).

“Following BP’s $10.5 billion deal with BHP, all of the supermajors have a footprint in the Permian Basin, and are poised to deliver an unprecedented phase of production growth that will see output reach new highs over the next decade,” Roy Martin, research analyst in WoodMac’s corporate upstream team.

How important is shale to the majors?

Without their volumes, collective production from the majors would enter long-term decline from 2020.  

The majors:

The big player here seems to be ExxonMobil, who has the most acreage, biggest resource and highest peak production.Martin said no other major has comparable diversity across the Permian, Bakken, Eagle Ford, Haynesville and Marcellus plays.

In the Bakken, XOM has XTO. From my perspective: blind luck, but I could be wrong. I often am. 

BP’s deal with BHP “transformational” and makes it possible for BP to overtake Exxon to become the leading shale gas producer.

Chevron’s dominance in the Permian (with 2.2 million net acres) has made its portfolio the most valuable.  

For the record, my favorite major (not to be confused with "my favorite Martian") is Chevron.

“Underpinned by its low-royalty Permian position, Chevron possesses the most attractive Internal Rate of Returns (IRR) on new U.S. conventional projects among the majors,” Martin said. “Its future investment in the resource theme of $54 billion is second only to ExxonMobil.”

Again, the emphasis is on the Permian. That's fine. North Dakota mineral owners are quietly going to the bank every month.

Meanwhile, over at oilprice.com: