We have enough barrels to produce from the current base position. We actually don’t need to explore more. Gom is great with the shell partnership stuff. Suriname might pay off. Don’t lead and lose, follow and win
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Devon was a great buy in 2020 also. We missed it!
If the company strategy grow by buying energy companies on the cheap when the price of oil is down, you could be waiting for awhile given the supply chain issues and inflation. What are you going to do in the mean time?
Any time oil prices dip many “once in a lifetime opportunities” appear. Look at market caps early 2020..
Marathon $3B for 1 B bbl.
ConocoPhillips $30B for 6B bbl.
Etc.
As the recovery continues I think investors will notice the lack of future development opportunities for Chevron.
Noble was a one in a lifetime opportunity where the CEO sold Noble at a huge discount so the CEO could personally enrich himself. There are no more Noble's to be found in the oilfield. If Chevron cannot organically growth the company through exploration, then its future is limited.
Exploration doesn't add reserves, it adds resources which may or may not ever be classified as reserves after spending a $10-15/bbl to develop them. Exploration, when we are successful, adds resource barrels at $3/bbl. The Noble deal added proven reserves at $2.5/bbl (2 billion barrels for $5 billion), although quite a few of them were later de-booked by Chevron.
Is this the layoff's site?
You guys have no understanding of the oil and gas industry. Reserves replaced ratio went out of favor years ago as it did not mean anything. If and when chevron chooses to refill the hopper it’ll just go buy a company. There is no real advantage these days to opening a basin as you don’t know what the price or demand will look like in 20 years time. You derisk that by waiting for others to do the heavy lift for you.
JJ has fought a losing battle with MW over exploration spend, not helped by terrible results. If his successor is a yes man, exploration will drop to zero. Maybe LS will get JJ job.
Not having an exploration program is a sure sign that management plans on selling out the company at some point. The question is when.
Got news for you. Investors will eventually figure out Chevron does not have an exploration program and it will eventually go into terminal decline. It will then be reflected in the stock price and Chevron will be sold off to the highest buyer.
Of what?
Our proved and developed crude is less than a three year supply.