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RedRifle
Vanderbilt Fan
Austin/NO
Member since Dec 2013
7305 posts

Big baws move to dominate Permian
LINK

quote:

The Big Oil companies Exxon Mobil and Chevron are keeping their promises to dominate the Permian Basin, rapidly ramping up production as smaller companies contend with declining drilling activity, muted oil prices and a skeptical Wall Street unwilling to finance their growth. Exxon Mobil has, by far, become the Permian’s most active driller with more than 50 rigs operating in the West Texas oil field, increasing production there by nearly 90 percent in 12 months. Chevron, along with Occidental Petroleum of Houston, is one of just two companies producing more than 420,000 barrels of oil equivalent per day from the region, the companies said Friday in their quarterly earnings reports.

quote:

Small and midsize oil firms led the so-called shale revolution, proving horizontal drilling and hydraulic fracturing techniques. Exxon and Chevron — and energy majors generally — came to shale slowly, but now they are using their deep pockets, size and diversified income to continue to invest in drilling projects in the Permian and drive growth there. To a lesser extent, the European energy majors Royal Dutch Shell and BP also are focusing on Permian growth.


Rep520
Arizona Fan
Member since Mar 2018
5863 posts
 Online 

re: Big baws move to dominate Permian
I'm disappointed this isn't about Friday Night Lights.


TH03
Iowa State Fan
Dallas
Member since Dec 2008
156339 posts

re: Big baws move to dominate Permian
Better late than never I guess.


ColoradoAg03
Texas A&M Fan
Denver, CO
Member since Oct 2012
4541 posts

re: Big baws move to dominate Permian
Concho and Pioneer falling behind.


GREENHEAD22
LSU Fan
LafayettebywayofBush
Member since Nov 2009
13215 posts

re: Big baws move to dominate Permian
It was thier gameplan all along. Let the independents do all the leg work and find the sweet spots. Run themselves broke trying to keep their stock prices up then the majors will sweep them up on the cheap.


waiting4saturday
LSU Fan
Covington, LA
Member since Sep 2005
5578 posts
 Online 

re: Big baws move to dominate Permian
Im guessing when they say XOM they really mean XTO? XTO & CVX were some of the only larger players that never left the Permian in the early 2000s, which is why they have such great acreage positions.

ETA: this is one of the reasons the GOM hasn’t come back to pre-2014 levels. More and more majors are putting capital in the Permian with the quick ROI rather than larger mega projects in the gulf. Projects in the gulf have gotten leaner and meaner to compete though.
This post was edited on 8/6 at 5:18 pm


EveryoneGetsATrophy
LSU Fan
Member since Nov 2017
921 posts

re: Big baws move to dominate Permian
ExxonMobil(XOM) not XTO.

quote:

Deep-pocketed ExxonMobil and Chevron Corp. during the second quarter taught the independents a thing or two about how to make it work in the Permian Basin no matter what the price of oil and gas is.


LINK


Nado Jenkins83
New Orleans Saints Fan
Land of the Free
Member since Nov 2012
38460 posts

re: Big baws move to dominate Permian
Big time


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The Torch
LSU Fan
DFW The Dub
Member since Aug 2014
10504 posts

re: Big baws move to dominate Permian
Wonder how this will affect small service companies.

I have a stake in a flowback equipment rental company in the area, we've been a little slow the last three to four months and I'm starting to feel it.

This post was edited on 8/6 at 6:07 pm


redstick13
Detroit Mercy Fan
Houston
Member since Feb 2007
28536 posts

re: Big baws move to dominate Permian
quote:

ExxonMobil(XOM) not XTO.



XOM owns XTO so it's not false to say XOM. There's been a shift the past 12 months in the way XTO operates in the PE as XOM becomes more involved in their operations.
This post was edited on 8/6 at 6:11 pm


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60
Gray12
LSU Fan
Great State of Texas
Member since Apr 2018
480 posts

re: Big baws move to dominate Permian
XTO is 100% owned by Exxon.

Top players now are XTO, Chevron, Occidental and EOG resources.


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70
GREENHEAD22
LSU Fan
LafayettebywayofBush
Member since Nov 2009
13215 posts

re: Big baws move to dominate Permian
It is going to sink them. The majors aren't going to have a bunch of different companies doing service work. They are going to get a couple to supply everything. Most likely the bigs and at dirt cheap rates who will wait out all the smaller ones then they will incrementally crank back up the rates.

Over the next 3-5 yrs we will see a slow death of smaller independent producers and service companies.
This post was edited on 8/6 at 6:12 pm


The Torch
LSU Fan
DFW The Dub
Member since Aug 2014
10504 posts

re: Big baws move to dominate Permian
quote:

It is going to sink them.


Not what I wanted to hear, we have a group that invested in flow back equipment a few years back. Flares, test trailers, sand traps etc etc for daily rent.

We have 75 pieces and they have slowly been pilling up in the yard.


GREENHEAD22
LSU Fan
LafayettebywayofBush
Member since Nov 2009
13215 posts

re: Big baws move to dominate Permian
Yea I would be looking to get out. I was looking at partnering up on a venture about 6 months ago but decided against it. The window for small independent guys to make money is gone imo.
This post was edited on 8/6 at 6:28 pm


EveryoneGetsATrophy
LSU Fan
Member since Nov 2017
921 posts

re: Big baws move to dominate Permian
If the company your invested in has a niche, hopefully they'll get bought before going under.


redstick13
Detroit Mercy Fan
Houston
Member since Feb 2007
28536 posts

re: Big baws move to dominate Permian
quote:

Yea I would be looking to get out. I was looking at partnering up on a venture about 6 months ago but decided against it. The window for small independent guys to make money is gone imo.



The time to get out was around 12 months ago.


Sun God
LSU Fan
Member since Jul 2009
15005 posts

re: Big baws move to dominate Permian
quote:

The time to get out was around 12 months ago



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The Torch
LSU Fan
DFW The Dub
Member since Aug 2014
10504 posts

re: Big baws move to dominate Permian
quote:

If the company your invested in has a niche


The sand trap rental business was booming since the come back after 2014 but seems to be tapering off, we couldn't build enough to meet demand but now we can't keep them out.


like these


Image: https://i.imgur.com/mOo7C6v.jpg
[/img]


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DaBike
Katy, Tx
Member since Jan 2008
4721 posts

re: Big baws move to dominate Permian
After they buy up everything they’ll sort out what they like and sell the rest to new startups.


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El Segundo Guy
Missouri Fan
90245
Member since Aug 2014
1785 posts

re: Big baws move to dominate Permian
I just need the jobs and drilling in the area t hold on for a few for months. My wife inherited a minority stake in 2 sections around the area on the outskirts of Odessa.


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