• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 13 hours Oil prices going Up? NO!
  • 4 mins Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 4 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 2 days Could Venezuela become a net oil importer?
  • 4 hours The Tony Seba report
  • 3 mins Kenya Eyes 200+ Oil Wells
  • 1 day Oil prices going down
  • 2 days Oil Buyers Club
  • 1 day Could oil demand collapse rapidly? Yup, sure could.
  • 9 hours Saudi Arabia turns to solar
  • 2 days Gazprom Exports to EU Hit Record
  • 20 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 14 hours Are Electric Vehicles Really Better For The Environment?
  • 1 day Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 days Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 1 day Tesla Closing a Dozen Solar Facilities in Nine States
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