Will we buy them and ruin them too?
15 replies (most recent on top)
Our exploration group is a joke - it is just a billboard, an advertisement, and a bit of an option to drill in the future but MW has been clear he is riding the big assets for the next decade plus (MCBU, TCO, ABU). LS fulfills a diversity statistic at PSG 30+…….perhaps capable if LS’s team was actually full staffed, fully funded and had full executive support to grow the portfolio, but that is not the case.
Correction - Mexico is also a bust. Max and Chibu wells were high dollar, high-hope dusters. More bad news to come. We lost our technical touch when it comes to exploring some years ago, like around 2000.
Chevron is investing in exploration. See recent investment in Zap Energy. Why add reserves that will never be produced. Fusion, H2, NH3 are the future of energy. The O&G industry needs to consolidate because soon (10-15 yrs) their products will only be needed for plastics and chemicals.
@1zdk, you must be one of LS' high-pots. Chevron under LS's valiant leadership hasn't had a significant discovery anywhere on the face of the Earth since Ballymore in 2018 (and that was a prospect developed before her tenure). "...still has enough clout..." Really? We've resorted to farming in and partnering with Shell and others to try and find us some reserves. Brazil? Dud. Mexico? We haven't even drilled a well there, have we? Egypt? Poor acreage, we haven't drilled there either. Suriname? Dry holes while Exxon is booking billions of barrels. We don't even have enough budget to maintain a rational exploration program anywhere. Our only hope of securing reserves 'the old fashion way' is to re-characterize Permian development wells as exploration. In her defense, it isn't all LS' fault - MW hates exploration and anything involving risk.
Buffet owns 17% plus of OXY now and that does not include his preferred stock at 10 billion. Once he acquires 20% he can choose to take a different accounting procedure that allows him to record Oxy profits on BH balance sheet. You can probably count on that happening, and I am sure when we are talking about this much money MW and VH can be brought together by WB. The Oxy acquistion of APC is working well at these high prices. Never think these guys at the top will not do a deal, because they are all in it for the money.
Exploration. You have to be kidding. Last time I checked there were only three seismic crews working in the US. Exploration is too expensive and risky. Even if a new field was discovered, would the greenies in power allow to produce it?
If buying out another outfit is what it takes these days to replace reserves, we’re in a heap of trouble. Chevron is large enough and still has enough clout to secure its reserves the old fashioned way. It’s very simple, it’s called Exploration and Production.
We'll buy OXY for less than what I paid for Anadarko
The Unocal buyout was for $17.9bil and that was in 2005. Oxy is a bigger company than Unocal too. Check the market cap of OXY - its over $60bil.
Buffet is a huge investor in CVX & Oxy. If anyone could nudge things that way, it’s him.
Ruined. She’s already done it.
VH already doing a good job of ruining OXY
Unocal was like $10B. Oxy should be like $3.
It would take over $100bil to buy OXY. A mutual merger would never happen.
Chevron holds a grudge against VH for Anadarko. No way they're going to give her a golden parachute.