• 6 minutes Can the World Survive without Saudi Oil?
  • 10 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 2 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 5 hours Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 2 hours WTI @ $75.75, headed for $64 - 67
  • 12 hours Judge Approves SEC Settlement With Tesla, Musk
  • 7 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 7 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 10 hours EU to Splash Billions on Battery Factories
  • 7 hours China Thirsty for Canadian Crude
  • 9 hours Iranian Sanctions - What Are The Facts?
  • 12 hours Gold price on a rise...
  • 12 hours Porsche Says That it ‘Enters the Electric Era With The New Taycan’
  • 9 hours Two Koreas: U.N. Command Wrap Up First Talks On Disarming Border
  • 8 hours Shell, partners approve huge $31 billion LNG Canada project. How long till Canadian Federal government Environmentalates it into the ground?
Editorial Dept

Editorial Dept

More Info

Trending Discussions

Global Energy Advisory April 6th, 2018

Permian

ConocoPhillips said this week that it has sold non-core assets worth $250 million in the Lower 48 and bought more acreage in Canada for $120 million in a classic sell high-buy low move aimed at ensuring its low-cost production from a slimmer but more focused portfolio. Conoco boasts an average sustained cost per barrel of just $40.

The company will retain most of its acreage in the Permian, it said, also acquiring some land in the Austin Chalk formation in Louisiana. This formation has not attracted a lot of attention until recently but it is now seeing interest from local drillers. It is too early to say whether it would attract the amount of attention the Permian has enjoyed, but given Conoco’s focus on low-cost production, the Austin Chalk might be a place to watch.

Meanwhile, investors are rewarding Conoco for its strategy of returning more cash to shareholders rather than focusing exclusively on boosting production. Its stock has become the best performer in the U.S. oil industry in the past 12 months, while those among its peers who have come out with upbeat higher capex plans, such as Exxon, have seen their stock decline in the period.

Conoco’s recent moves—and not jut the recent ones, either—suggest the company has learned the 2014 lesson very well and it plans to insulate itself from future price shocks with the prioritization of low-cost production even if it remains unchanged on previous years, which the company now expects.

Deals,…

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