Rumors flying around that Chevron’s North Dakota assets are seeking a suitable purchaser. Folks on the ground what’s your perspective? Possible or Impossible…love it when they say impossible
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These are the type of assets mcbu spent years getting rid of as quick as they could.
EOG is looking at Ohio/PA more.
@ec That is what I was saying with the DJ. They have plans to pick up a 3rd rig in 2026. Like it or not, it's on the schedule. When we bought PDCE, we slashed their wells per section in half (16 vs 8 now) and took the inventory that they had left from 10 years of drilling down to 5. Now that the 3rd rig is being picked up, that means the inventory is drilled up in 3 years. So, thank you for confirming exactly what I said.
There is not enough inventory to drill faster in the DJ. Upstream had planned to give RBU more capex last year to drill more of these economic wells but there’s just not enough inventory to go through. It will be base business only in 5 years.
And as for the Bakken, it’s still almost 200k barrels. Contractually tied to their midstream and difficult to get out of that like we did Noble. Opex is very high and definitely not as profitable as the DJ. Question is whether we want those 200k and keep spending money on this. It’s pretty much SJV without the California.
@b7 would you to correct the rumor?
@ah that’s a bad rumor on dj
The rumor I heard is that Chevron wants to increase S&T production significantly, which would include drilling more wells. Picking up a 3rd rig in DJ next year. Went from 10 years of drilling there down to 3 because they slashed the wells per section in half. Leaving all that production in the ground...
I'm also reluctant to believe we'll be keeping Bakken assets long-term. However, if they're as cost effective as the DJ, I think we'll keep them. I am just not involved with that side of the business to know.
@a4 spot on…it’s like we are reliving that 1996-2004 when big Oil wanted out of domestic production…
No specific insight here - but i do get the sense Chevron wants little to do with USA onshore anymore. Seems to me they’ve realized it’s largely a low margin Ponzi scheme. Also explains a lot about the new org structure.