Another Amazing Energy Story; The Chevron Story -- November 2, 2018

First, from twitter:

Now, the article linked at Platts, data points --

• attributes increased production to well design tweaks; high-density fracks -- the same stuff being used in the Bakken
• Chevron's Permian output rises to 338,000 boepd
• Chevron USGC oil export capacity will triple -- not double -- but triple in early 2019 -- in early 2019? That's like two months from now ....
• Chevron's production surged 80% yoy
• reminder: memo to Art Berman who famously said, "shale is not a revolution, it's a retirement party"-- and he's a self-described oil expert
• Chevron's play in West Texas / eastern New Mexico: the Midland (eastern) and the Delaware (western) sub-basins
• 338,000 boepd is the equivalent of adding a midsized Permian pure-play E&P company in a matter of months
• CEO: "we're operating off a new basis of design and finding that has been incredibly successful
• and just think: Colorado voters may pass Proposition 112 and drive the oil industry out of their state; 
• Chevron said a couple of years ago it would ramp up to 20 rigs in the Permian; they now have 20 rigs in the Permian, and will probably stay at that level
• and, then get this, something we've said for seven years on the blog: "I think over time, we're going to try to move what we consider to be a critical performance metric away from just rigs to something that would be a better efficiency measure." Perhaps EURs?

From the Financial Times,

Chevron’s production surged in the third quarter, rising by 9 per cent as the company ramped up output from shale oilfields in the Permian Basin of Texas and New Mexico, and at its Australian natural gas plant Wheatstone.

The company, which is the second-largest US oil group by market capitalisation, revealed the increase as it reported earnings that were above analysts’ expectations even after one-off charges totalling $930m.

Earnings per share for the third quarter were $2.11, roughly double their level of $1.03 in the equivalent period of 2017, helped by rising oil and gas prices as well as the rise in production volumes.

Oil and gas output in the US was up 22 per cent, boosted by surging shale oil production.

“This allowed us to pay the dividend, fund our capital program, strengthen the balance sheet, and repurchase $750 million of the company’s common stock,” he said.

The combination of higher prices and increased volumes drove Chevron’s US oil and gas production operations from a loss of $26m in the third quarter of 2017 to a profit of $828m for the equivalent period of 2018, even after a $550m charge for a write-off at a project in the Gulf of Mexico.

Michael Wirth, who took over as Chevron’s chief executive earlier this year, said the company’s quarterly cash flow from operations of $9.6 billion was the highest it had been in nearly five years.

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Meanwhile, in Venezuela

From ArgusMedia:

Frequent blackouts are thwarting Venezuelan state-owned PdV's plans to revive oil production that is now hurtling toward 1mn b/d by year´s end.

On paper, state-owned utility Corpoelec has 36.3GW of thermal and hydro generation capacity nationwide, but only 12.5GW was operational in the first half of October.

Almost two-thirds of Corpoelec's installed generation capacity was out of service because of damaged equipment and chronic shortages of natural gas and diesel feedstock.

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And The Road to Europe