• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 24 mins World’s Biggest Battery In California Overheats, Shuts Down
  • 2 hours Evergrande is going Belly Up.
  • 12 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 21 hours U.S. Presidential Elections Status - Electoral Votes
  • 15 hours Poland Expands LNG Powered Trucking and Fueling Stations
  • 2 days And now, hybrid electric locomotives...
  • 22 hours Ozone layer destruction driving global warming
  • 1 day The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 2 days The Painful Death of Coal
  • 20 hours The coming Cyber Attack
  • 21 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 24 hours 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers

Chevron Planning $1B Permian Asset Sale

Chevron is reportedly planning to sell oil assets in the Permian that could fetch up to $1 billion, according to unnamed sources cited by Reuters.

According to Reuters, the supermajor has confirmed plans for sale involving conventional oil fields but did not specify the value of a possible deal or deals.

Chevron has hired an investment bank to find buyers for assets worth $879 million. It has also earmarked another $200 million worth of Permian fields for sale, sources told the media outlet.

A pickup in asset sales was expected as oil prices rebound, reaching the highest in more than two years. Companies, even as large as Chevron, could do with the additional cash while offloading non-core assets.

"The big picture is that Chevron has one of the largest and most advantaged positions in the Permian and is able to test the capital discipline of the industry with what it would consider marginal assets that are a much smaller package than the Shell potential offering," Reuters quoted analyst Paul Sankey as saying.

Chevron’s low-cost Permian assets are its primary growth driver, Zacks analysts said earlier this week in an industry outlook.

In addition to its strict capital discipline and conservative spending plans, these assets should help it weather the effects of the latest crisis and continue growing.

Besides being more conservative with its spending plans than most peers, Chevron is also bucking a trend in business diversification that has had European supermajors scrambling to boost their exposure to wind and solar energy while reducing their oil and gas output.

Recently, the company said it had no plans to reduce its oil and gas production and start investing in wind and solar energy. That’s despite a majority of shareholders voting at the company’s latest AGM to have it reduce its Scope 3 emissions—the ones generated by the use of its products.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News