All articles tagged with #shale oil
Shale oil executives believe that President Trump's policies are negatively impacting investment and the future of the industry, citing increased uncertainty, regulatory costs, and political hostility, which have led to industry decline and concerns about long-term sustainability.
ConocoPhillips has agreed to acquire Marathon Oil for $22.5 billion in an all-stock deal, marking the latest major consolidation in the U.S. energy sector. The acquisition, expected to close in Q4 2024, will add over 2 billion barrels of reserves to ConocoPhillips' portfolio and is anticipated to generate $500 million in cost savings within the first year. The deal follows other significant mergers in the industry and has raised some antitrust concerns, although the FTC views the impact on the global market as minimal.
ConocoPhillips has agreed to acquire Marathon Oil for $22.5 billion in an all-stock deal, marking the latest major consolidation in the U.S. energy sector. The acquisition, expected to close in Q4 2024, will add over 2 billion barrels of reserves to ConocoPhillips' portfolio and is anticipated to generate $500 million in cost savings within the first year. The deal follows other significant mergers in the industry and has raised some antitrust concerns, though the FTC views the impact on the global market as minimal.
Diamondback Energy has announced a $26 billion cash-and-stock deal to acquire Endeavor Energy Partners, solidifying its position as the third-largest oil and gas producer in the Permian Basin. The consolidation trend in the industry continues, with the combined company expected to pump 816,000 barrels of oil and gas per day. The deal is aimed at boosting ongoing production and securing future drilling inventory, with Diamondback expecting $550 million in annual synergies. The acquisition is set to close in the fourth quarter, with Diamondback stockholders owning 60.5% of the combined entity and Endeavor owning the rest.
Chevron has announced its acquisition of Hess Corp in a $53 billion all-stock deal, expanding its presence in U.S. shale and oil-rich Guyana. Analysts believe the deal will strengthen Chevron's portfolio and diversify its assets, but the timing and price may weigh on the company's shares in the near term. The merger is expected to have a significant impact on the shale oil industry, making Chevron the second-largest shale producer in the United States and potentially leading to increased M&A and industry consolidation in the North America shale sector. Some analysts express surprise at the deal, given Exxon Mobil's operation of Hess' largest asset in Guyana, and suggest that Chevron could have pursued a company with more contiguous assets.
The head of Exxon Mobil's shale oil and gas business, David Scott, was arrested on a sexual assault charge at a hotel in Texas. Scott, who oversees all of Exxon's shale oil and gas production, was involved in merger talks with Pioneer Natural Resources. Exxon stated that Scott will not continue work responsibilities as the investigation proceeds. The arrest comes as Exxon is reportedly in advanced talks to acquire Pioneer in a deal that could value the shale producer at about $60 billion. Scott faces a second-degree felony assault charge and was released on a $30,000 bond.
ExxonMobil's potential acquisition of Pioneer Natural Resources for almost $60 billion highlights the consolidation of ExxonMobil's grip on the oil market and the value of the shale oil industry. The article questions why the UK has not developed companies of similar size and success in the shale industry, attributing it to a combination of local protests, environmental objections, and government bans. The author argues that the UK missed a significant opportunity to create a thriving shale industry, which could have generated jobs, tax revenues, and energy security, while diversifying the energy mix with wind and nuclear power.
ConocoPhillips, a US oil and gas producer, reported lower-than-expected quarterly profit due to weak oil and gas prices. However, the company slightly raised its full-year output expectations, with a 6% increase in production to 1.81 million barrels of oil and gas per day. ConocoPhillips also narrowed its capital spending guidance range and noted some deflation in oilfield service costs. Despite the earnings miss, shares rose 1% in midday trading.
Exxon Mobil has held preliminary talks with Pioneer Natural Resources about a possible acquisition of the U.S. shale oil producer. Pioneer Natural Resources stock surged 7.7% on Monday during market trade. Other shale plays also advanced. The talks between the two companies have been informal, and it is still unclear if a deal will get done. Meanwhile, OPEC+ announced an unexpected crude oil production cut of about 1.15 million barrels a day starting in May, causing U.S. crude oil prices to decline more than 1% to just below $80 per barrel on Monday.