Bruno Linder’s Post

🇺🇸 Permian gas output has been in the spotlight this year as gas prices slid lower. Gas producers will often rein in drilling when prices collapse, but drilling decisions in the Permian, the second-largest gas field in the US, are based on oil prices rather than gas. A recent acquisition by ExxonMobil of Permian-focused oil producer Pioneer Resources, Inc. for $59.5bn will likely bolster drilling by allowing the combined company to increase scale and cut costs in the Permian, boosting profitability even at lower oil prices. Improved well-level productivity and higher crude prices in 2024 likely will spur more drilling, leading to an increase in associated gas production. Read the full story by David Haydon at Argus Media: https://okt.to/gKAFYu Stay current with Argus Newsletters: https://okt.to/qEwArP #wti #oilgas #oilandgas #markets #trade

🇺🇸 Permian gas output has been in the spotlight this year as gas prices slid lower. Gas producers will often rein in drilling when prices collapse, but drilling decisions in the Permian, the second-largest gas field in the US, are based on oil prices rather than gas. A recent acquisition by ExxonMobil of Permian-focused oil producer Pioneer Resources, Inc. for $59.5bn will likely bolster drilling by allowing the combined company to increase scale and cut costs in the Permian, boosting profitability even at lower oil prices. Improved well-level productivity and higher crude prices in 2024 likely will spur more drilling, leading to an increase in associated gas production. Read the full story by David Haydon at Argus Media: https://okt.to/0N7Xci Stay current with Argus Newsletters: https://okt.to/qRne7E #wti #oilgas #oilandgas #markets #trade

🇺🇸 Permian gas output has been in the spotlight this year as gas prices slid lower. Gas producers will often rein in drilling when prices collapse, but drilling decisions in the Permian, the second-largest gas field in the US, are based on oil prices rather than gas. A recent acquisition by ExxonMobil of Permian-focused oil producer Pioneer Resources, Inc. for $59.5bn will likely bolster drilling by allowing the combined company to increase scale and cut costs in the Permian, boosting profitability even at lower oil prices. Improved well-level productivity and higher crude prices in 2024 likely will spur more drilling, leading to an increase in associated gas production. Read the full story by David Haydon at Argus Media: https://okt.to/NkC2nc Stay current with Argus Newsletters: https://okt.to/Qvb1cA #wti #oilgas #oilandgas #markets #trade

Oil and gas upstream M&A deal value hits highest Q1 levels since 2017   An ongoing consolidation in the U.S. shale industry has driven up global M&A deal value in the oil and gas exploration sector to its highest first-quarter level in seven years, industry experts said. Deals worth more than $55 billion have been announced in the first two months of 2024, according to analytics firm Enverus, as publicly traded companies take advantage of their high share price to gobble up smaller firms.   https://lnkd.in/eMAac7vV   #TrioPetroleum #CaliforniaEnergy #SouthSalinasProject #InvestInCalifornia Trio Petroleum Corp (NYSE: TPET)

Oil and gas upstream M&A deal value hits highest Q1 levels since 2017   An ongoing consolidation in the U.S. shale industry has driven up global M&A deal value in the oil and gas exploration sector to its highest first-quarter level in seven years, industry experts said. Deals worth more than $55 billion have been announced in the first two months of 2024, according to analytics firm Enverus, as publicly traded companies take advantage of their high share price to gobble up smaller firms.   https://lnkd.in/drk_Gd_G   #TrioPetroleum #CaliforniaEnergy #SouthSalinasProject #InvestInCalifornia Trio Petroleum Corp (NYSE: TPET)

Why Permian oil and gas production growth has been on hiatus lately. Permian Gas Processing Plans Hint at Impending Rebound in Production Among other things, we cited capital discipline by E&Ps, acreage consolidation and optimization, and gas takeaway constraints, the last of which producers have been dealing with (in part) by reducing their drilling activity and shifting to areas with lower gas-to-oil ratios (GORs). In that same blog, however, we noted that despite the current plateauing of Permian production, midstreamers continue to design and build new gas processing capacity, virtually all of it backed by producer commitments. That suggests that E&Ps and integrated production/refining giants like ExxonMobil and Chevron expect to ramp up their production of Permian crude oil and associated gas over the next year or two. https://lnkd.in/gV9_UQQE

Public company proved oil and natural gas reserves were mostly unchanged in 2023. Global proved crude oil and natural gas reserves held by 175 publicly traded global exploration and production (E&P) companies increased by 2.0 billion barrels of oil equivalent (BOE) in 2023, or about 1%, according to data from the companies’ annual financial reports. http://ow.ly/AubT105F8F0

ConocoPhillips has observed high single to low double-digit deflation in key spend categories such as pumping services, proppant, and OCTG (Oil Country Tubular Goods). Market deflation in the oil and gas services sector refers to a period during which prices for services provided to oil and gas companies (such as drilling, hydraulic fracturing, well completion, and equipment rentals) decrease.  https://lnkd.in/gikbiEJa

Public company proved oil and natural gas reserves were mostly unchanged in 2023. Global proved crude oil and natural gas reserves held by 175 publicly traded global exploration and production (E&P) companies increased by 2.0 billion barrels of oil equivalent (BOE) in 2023, or about 1%, according to data from the companies’ annual financial reports. http://ow.ly/AubT105F8F0

The consolidation of U.S. shale continues, with Diamondback Energy set to buy Endeavor Energy Resources, LP. The deal would create the third largest oil and gas producer in the Permian Basin, following ExxonMobil's deal to purchase Pioneer Natural Resources Company and Chevron's agreement to acquire Hess Corporation. #shale #usoil #oilandgas #energy