Locator: 51579VENEZUELA.
Apparently the US got the oil for $3.22 / bbl.
CNN's analysis: link here. Thinking outside the box.
The Wall Street Journal analysis, two articles: link here. This link with Chevron in the headline.
Apparently the number is 65 billion bbls of reserves will be controlled (owned?) by the US. Some say this is trivial in big scheme of things, but this is what is important -- the US got it, not China. Under past administrations, China was ready to pounce.
Put in perspective: the Permian has 100 billion bbls in reserves. The Bakken? 4.3 billion bbls.
Chevron has certainly had a run of good luck the past few years. It appears to continue. Of course the devil is in the details.
The story starts to emerge:
Backstory:
Query:
Which American integrated / major E&P oil company is likely to benefit most from this acquisition if it turns out to be accurate?
Reply:
How are U.S. Gulf Coast refineries are structurally optimized to process this specific type of heavy Venezuelan crude?
Reply:
Query:
How might this impact U.S. gasoline prices at the pump?
Reply:
So many story lines:
- heavy oil, Keystone XL, Canada;
- Mideast, irrelevancy of the strait;
- history of Ecuador and OPEC; what this means to OPEC;
- Iran and its OPEC neighbors; and, oh by the way,
- the size of Venezuela oil reserves; this is not trivial.
- the irrelevancy of the Strait of Hormuz.
- the irrelevancy of Iran. Iran needs headlines.
If this story is accurate:
- we need to see the details; and,
- we will hear any number of stories on Monday.
What might help validate the amount of this deal?
CVX, ticker:
XOM, ticker:
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Disclaimer
Briefly:
I am inappropriately exuberant about the Bakken and I am often well out front of my headlights. I am often appropriately accused of hyperbole when it comes to the Bakken. I am inappropriately exuberant about the US economy and the US market. I am also inappropriately exuberant about all things Apple. See disclaimer. This is not an investment site. Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. All my posts are done quickly: there will be content and typographical errors. If something appears wrong, it probably is. Feel free to fact check everything. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. Reminder: I am inappropriately exuberant about the Bakken, US economy, and the US market. I am also inappropriately exuberant about all things Apple. And now, Nvidia, also. I am also inappropriately exuberant about all things Nvidia. Nvidia is a metonym for AI and/or the sixth industrial revolution. I've now added Broadcom to the disclaimer. I am also inappropriately exuberant about all things Broadcom. Now, I've added Amazon. And QCOM. Longer version here.
