• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 3 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 10 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 13 hours Wonders of Shale- Gas,bringing investments and jobs to the US
  • 2 mins CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 1 hour Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 9 hours California's Oil Industry Collapses Despite Shale Boom
  • 7 hours North Dakota oil output totals 1.39 million b/d in March, up 4% on month: state
  • 2 hours Global Warming Making The Rich Richer
  • 5 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 13 hours Knock-Knock: Aircraft Carrier Seen As Barometer Of Tensions With Iran
  • 13 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 12 hours IMO2020 To scrub or not to scrub
  • 10 hours Iceland Reducing Gas Stations By Half By 2025
  • 5 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China

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…




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