• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 15 minutes WTI @ 67.50, charts show $62.50 next
  • 2 hours Starvation, horror in Venezuela
  • 33 mins Mike Shellman's musings on "Cartoon of the Week"
  • 2 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 17 hours Tesla Faces 3 Lawsuits Over “Funding Secured” Tweet
  • 4 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 12 mins Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day The EU Loses The Principles On Which It Was Built
  • 21 hours Why hydrogen economics does not work
  • 10 hours Saudi Fund Wants to Take Tesla Private?
  • 13 hours California Solar Mandate Based on False Facts
  • 1 hour WTI @ 69.33 headed for $70s - $80s end of August
  • 1 day WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 13 hours Oil prices---Tug of War: Sanctions vs. Trade War
The Productivity Problem In The Permian

The Productivity Problem In The Permian

The pipeline capacity crisis in…

LNG: China’s Biggest Weapon In The Trade War

LNG: China’s Biggest Weapon In The Trade War

The trade war between the…

Shell And Blackstone To Bid On BHP Billiton’s Shale Assets

Shale

Royal Dutch Shell and Blackstone Group will come together to bid on assets being offloaded by BHP Billiton, according to a new report by Reuters. The $10 billion bid would cover a portion of BHP’s U.S. shale operations.

BHP, Shell, and Blackstone denied comment on the story.

Private equity firms have begun investing in shale assets as the industry downturn reduces oil majors’ investment budgets. Devon Energy sold $553 million in shale gas assets in Texas to an unnamed equity firm this week.

Shell and Anadarko Petroleum already own lands that sit next to the BHP lands slated for sale. If Shell makes the purchase, it would create a larger contiguous area for the company’s shale drilling.

BHP plans to swap its onshore assets with offshore ones in order to exit U.S. shale plays, Steve Pastor, the firm’s president of petroleum operations, said this week.

Shell began drilling in the Permian in 2012, just a couple years before the market crash that continues to keep crude barrel prices low. In order to bring cash flow to positive levels in 2019, the Anglo-Dutch company plans to increase drilling in the Permian, where production is relatively cheap and profitable in bearish markets. Per barrel costs can be as low as $15 in the Texas formation.

BHP is reversing big changes in its Australia profile, however. The company and its U.S. partner, ExxonMobil, decided to abandon the 20-month-long sales process of their joint ageing oil assets offshore Australia and will keep ownership and operation of the fields and associated infrastructure, the companies said last month, in what analysts see as a result of the higher oil prices compared to when the sales process was launched in mid-2016.

“After consideration of a range of options, we have currently decided to retain ownership and operation of these assets,” Exxon’s Australian unit, Esso Australia, said.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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