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.
Having read that, now look at COP.
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Superwoman Making Banana Bread
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