• 4 minutes Why Trump will win the wall fight
  • 7 minutes Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 9 hours Itt looks like natural gas may be at its lowest price ever.
  • 11 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 4 hours North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 11 hours America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash
  • 1 day AI Will Eliminate Call Center Jobs
  • 1 day Oil imports by countries
  • 14 hours US-backed coup in Venezuela not so smooth
  • 8 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 1 day NZ Oil, Gas Ban Could Cost $30 Bln
  • 1 day Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day Solar and Wind Will Not "Save" the Climate
  • 13 hours Some Good News on Climate Change Maybe
  • 16 hours Europe Adds Saudi Arabia to Dirty-Money Blacklist
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Follow The Big Money In The Shale Patch

Permian

This last week, we’d have to say that many of the mini-majors, as well as one mega-major, just ran out of patience with this oil market. Just as the Saudis threw in the towel on glutting a market and waiting for US independents to crack, opting for a production agreement, so did some key oil companies here in the US give up on waiting for a greater value, convinced that the oil markets are headed steadily higher from here.

And one theme recurs through it all: Permian basin shale oil.

First, Exxon-Mobil’s (XOM) major move of buying up the privately owned Bass family acreage for $6.6 billion. This will be the last deal for CEO Rex Tillerson as he moves on to Washington, and he’ll certainly hope this one creates a better legacy than his deal for XTO energy in 2010. It’s as focused as the XTO was, in the hottest US shale play of the Permian, with an estimated 60 billion barrels of oil in reserves from 275,000 acres.

Noble Energy (NBL) acquired the Permian assets from Clayton Williams (CWEI), which has been by far the hottest oil stock of the last year. After trading in single digits in the spring of 2016, CWEI has steadily risen to above $100 a share – only to add another almost 50% premium with the Noble deal.

Finally, we saw the sale of Anadarko’s (APC) Eagle Ford acreage for $2.3b to Sanchez Energy (SN). This deal is particularly interesting when we look at the additional sale of Marcellus natural gas acreage that…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News