• 4 minutes THE GREAT OIL PRICE PREDICTION CHALLENGE OF 2018
  • 9 minutes Time For Reaction: Trump Presses OPEC to Reduce Prices as Crude Trades Near $80
  • 15 minutes Nothing new in Middle East? Iran Puts On 'Show Of Strength' Military Exercise In Gulf
  • 9 hours So about that psychological oil price ceiling of $80 ... Trump's Twitter sledgehammer is right on cue, again
  • 4 hours China Tariff Threatens U.S. LNG Boom
  • 9 hours Global Hunger Continues to Grow Driven By Climate Change
  • 2 hours Toyota Agreed To Add Android Auto To Its Vehicles
  • 13 hours So oil touched $80! (WTI break $71 twice). What does the future hold?
  • 7 hours Transition Time: Volkswagen Announces "Electric for All" Campaign
  • 3 hours Big Oil Costs Can't Go Much Lower
  • 13 hours WTI now at $70+ headed for $50s
  • 3 hours Google And Facebook Lead Digital's March To Half Of The U.S. Ad Market
  • 1 day Qatar/Germany: 10 billion Euro Investment In Germany's Energy Sector
  • 1 day PetroChina Inks Its Biggest Qatar LNG Deal as U.S. Trade at Risk
  • 1 day Economic collapse? Iran's Khamenei Tells Rouhani, Ministers, To Solve Economic problems
  • 1 day Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
Alt Text

Iran Sanctions Are Damaging The Dollar

Sanctions on Iran have bee…

Alt Text

Why U.S. Electricity Sales Surged In 2018

U.S. electricity sales have had…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

Global Energy Advisory – 17th August 2018

Tanker

The Permian once again reaffirmed its status as the star shale play in the United States after
Diamondback announced it had inked a merger deal worth $9.2 billion with peer Energen. This is the second Permian deal for Diamondback within a week, after it announced the acquisition of Ajax Resources for $1.2 billion.

The Energen deal—all-stock—was prompted by an activist investor, Corvex Management, which has been vocally unhappy about the company’s weak shareholder returns. This aspect of the deal highlights an ongoing trend in the star shale play: despite its coveted status, not all Permian acreage and not all Permian players are created equal. Those with the means to produce oil more cheaply are now buying those that are finding it hard to keep up.

It looks like a good year to sell. Earlier in 2018, Concho Resources bought Permian sector player RSP Permian for $8 billion. Supermajor BP also entered the Permian this year with the $10.5-billion acquisition of BHP Billiton’s shale oil assets that include considerable Permian acreage. The fact that this was BP’s biggest deal in nearly two years highlights the still high appetite of drillers in this part of Texas.

Meanwhile, production forecasts for the Permian remain robust. A recent one from IHS Markit saw Permian crude oil output rising to 5.4 million barrels daily by 2023 from about 3.4 million bpd now. This would certainly increase the United States’ weight in global…

To read the full article

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

RegisterLogin

Trending Discussions





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