Jordan Soto, executive producer, Hart Energy: Right now we're seeing some of the biggest energy deals get signed. Is this just the beginning? This is your A&D Minute powered by BOK Financial Securities.
M&A has been on fire in October, thanks to a sudden interest by the super majors and shale players. ExxonMobil bought Pioneer Natural Resources’ Permian Basin assets and analysts predicted an M&A frenzy would ensue. So far, they've been right. Just two days ago, Chevron inked a $53 billion deal for Hess assets in the Bakken and its interests offshore Guyana, which are coincidentally shared by Exxon. What does this mean for Chevron going forward and what about the rest of the E&P space?
Fernando Valle, oil and gas senior equity analyst, Bloomberg Intelligence: I think Chevron has shown that they will continue to be inquisitive. After Noble they followed that up with PDC Energy, which added to their holdings in the D-J Basin and similarly, I could see them consolidating some more of their positions, be that in the Gulf of Mexico or in the Bakken. I think for the industry as a whole, it does create a bit of a stir up because now you have two majors that will be responsible for a vast majority of the non-OPEC growth over the next 10 years. It does raise the question about the European majors and what they'll do. It seems like they're going to stay away from that, and we think that that will allow for more U.S. oil companies, not just the two majors, to gain market share over the next decade.
Recommended Reading
The Biden Effect: LNG SPAs Fall 15% in First Half 2024 After Pause
2024-07-03 - Poten & Partners data show that the total volumes associated with LNG sale and purchase agreements fell by 15% in the first half of 2024 compared to the same period in 2023 following the Biden administration’s LNG pause.
Kissler: Are We Set Up for a Summer Natural Gas Rally?
2024-07-02 - A warmer-than-normal season could jolt prices.
Glenfarne: HOAs Commit More than Half of Texas LNG Plant Capacity
2024-07-02 - Glenfarne Energy Transition said a new, nonbinding agreement has committed half of the Texas LNG Brownsville plant's 4 million tons/year capacity.
IGU: Global Liquefaction Capacity Expected to Grow by 75% by 2030
2024-07-02 - The International Gas Union (IGU) expects global liquefaction capacity to reach 700 mtpa by 2030, up 75% from 2023, driven by new FIDs and the start-up of other projects under construction.