Fast And Furious -- Fifteen Minutes -- Big Story: It's Coming Down To Saudi Arabia Vs Iraq -- October 30, 2020

Who controls the Permian? Rigzone. 

There’s been an ongoing pendulum swing between majors and independents as the controlling group of the Permian basin’s destiny for many years, but who controls the region now?

Well, according to a new Wood Mackenzie (Woodmac) editorial from the company’s Americas upstream oil and gas research director Benjamin Shattuck, new deals like the Pioneer and Parsley combination are swinging the pendulum from the majors back to the independents “fast”.

“The combined Pioneer/Parsley entity holds almost a million acres in the heart of the Midland Basin,” Shattuck stated in the editorial, which was posted on Woodmac’s website on Tuesday.

“Pioneer is once again a Permian heavyweight. The combined company will produce more regionally than ConocoPhillips and Concho, more than ExxonMobil, and more than Occidental and Anadarko. Considering the massive spending pullbacks of Chevron and ExxonMobil earlier this year, Permian forecasters need to recalibrate their models back to Pioneer’s plans,” Shattuck added in the editorial.

“Even with a lower reinvestment rate than before the deal and the variable dividend not coming into play until 2022, Pioneer will still grow five percent next year,” Shattuck went on to state.

Vietnamese LNG. Will post link from yesterday -- the story continues.

ExxonMobil Hai Phong Energy Pte Ltd (EMPHE), Hai Phong People’s Committee and Japan power generation firm JERA have signed a memorandum of understanding to work together on a potential integrated LNG-to-power project, JERA reported Wednesday.

The MOU promotes preliminary market development discussions among ExxonMobil, Hai Phong city government and JERA for a gas-fired power plant and LNG import terminal in the northeastern Vietnam port city.

“Hai Phong is industrializing at a fast pace, with an annual growth rate of over 20 percent,” remarked Nguyen Van Tung, chairman of the Hai Phong People’s Committee. “Hai Phong City is pleased to collaborate with ExxonMobil and JERA to provide a clean energy resource for Vietnam in Hai Phong City.”

US durable-goods: orders rose for fifth month in September, 2020. Link here.

Orders for long-lasting factory goods increased for the fifth consecutive month in September, 2020, the latest sign manufacturing companies are rebounding from supply-chain disruptions and shutdowns related to the coronavirus pandemic. 

New orders for durable goods—products designed to last at least three years—rose 1.9% in September compared with August, the Commerce Department said Tuesday. 

A closely watched proxy for business investment—new orders for nondefense capital goods excluding aircraft—increased by 1% last month. 

The measure had recovered all of its pandemic-related losses by August, suggesting that businesses have ramped up capacity in anticipation of growing demand. 

“The economic recovery isn’t entirely dependent on consumers, with business-equipment investment recording a swift bounce back to prepandemic levels,” said Paul Ashworth, chief U.S. economist at Capital Economics.

Saudi Arabia in deep doo-doo:

• from al Khaleej Today;
• search results;

Iraq: crumbling economy becomes a threat to OPEC+ production cuts.

Iraq may be the world's third-biggest oil exporter, but its economy is cratering after the coronavirus pandemic sapped global demand for energy and caused prices to collapse. 

The state's finances are so dire it can't pay teachers and civil servants on time, threatening a repeat of the upheaval that last year brought down the government and saw hundreds of protesters killed. 

That's created a dilemma for 46-year-old Abdul Jabbar, a chemical engineer and career oil man who's now caught between the demands of an angry population and the pledges made to allies in OPEC. 

The group of oil producers is trying to bolster a fragile market by reining in supply and it needs major producers like Iraq to toe the line. For Iraq, restraining supply carries a massive economic and political cost. But breaking ranks is risky too: it could mean lower prices for everyone. 

Some Iraqis want the government to put them first by simply pumping more oil, a move that could unravel the finely calibrated output agreement; if a producer as significant as Iraq flouts the pact, there'd be little to stop smaller ones doing the same.

Exxon: to slash up to 15% of global workforce; cuts include 1,900 jobs in US. Link here.  

IHOP: closing nearly 100 "underperforming" locations amid the pandemic. Link here.

Jobless claims, from yesterday, October 29, 2020: pandemic emergency jobless claims soar to record high. Link here.