02/06 Closing Prices / revised 02/07/2025 07:23 GMT |02/06 OPEC Basket  $76.145 –$0.72 cents | 02/06 Mexico Basket (MME)  $66.76 –$0.48 cents | 12/31 Venezuela Basket (Merey)  $61.13   +$1.55 cents  02/06 NYMEX Light Sweet Crude  $ 70.61   -$0.42 cents | 02/06 ICE Brent $74.29 -$0.32 cents  02/06 Gasoline RBOB NYC Harbor  $2.0747 +0.0240 cents 02/06 Heating oil NY Harbor  $2.3980 +0.0138 cents | 02/06 NYMEX Natural Gas  $3.408 +0.048 cents | 01/31 Baker Hughes Rig Count (Oil & Gas)  582 +6 | 02/07 USD/MXN Mexican Peso  $20.4539 (data live) | 02/07 EUR/USD Dollar  $1.0378 (data live) | 02/07 US/Bs. (Bolivar)  $60.14170000 (data BCV) | Source: WTRG/MSN/Bloomberg/MarketWatch/Reuters

Exxon Move on Pioneer Signals Big Oil’s Tightening Grip on Shale – Bloomberg

  • Deal would mark Exxon’s biggest transaction in two decades
  • Merger would create Permian’s biggest driller and fracker
Exxon Said to Be Near Deal for Pioneer

David Wethe, Kevin Crowley and Mitchell Ferman, Bloomberg News

HOUSTON
EnergiesdNet.com 10 06 2023

Exxon Mobil Corp.’s planned takeover of one of the vanguards of the shale revolution signals Big Oil’s tightening grip on the sector that vaulted the US to the top of global oil producers. 

Exxon is in talks to acquire Pioneer Natural Resources Co. in a deal that would mark the biggest expansion yet among oil supermajors to solidify their hold on the Permian Basin, the western hemisphere’s most-prolific oil field. For Pioneer’s peers, the move threatens to trigger an imminent bidding war as other international giants scramble to remain competitive. 

Exxon and fellow supermajors such as BP Plc and Chevron Corp. have been playing catch up since so-called independent companies like Pioneer and Continental Resources first cracked the code on shale more than a decade ago. Exxon’s pursuit of Pioneer, however, suggests the heyday of the independents is over.

“You’re seeing this go more and more to the big players,” Leo Mariani, an analyst at Roth MKM, said Friday in a phone interview. “The majors are signaling they want to consolidate more of the US.”

An Exxon-Pioneer tie-up would create the largest driller in the vast Permian region of West Texas and New Mexico, with 37 rigs actively searching for crude. That would be far in excess of the closest competitor, Occidental Petroleum Corp., with 22 rigs, according to data firm Enverus. 

The combination also would forge the biggest employer of the specialized teams of technicians, laborers and other workers that perform the delicate, exacting task of fracking wells, according to Lium LLC.

In the early days of breakthroughs in shale technology, the supermajors shunned the sector because of skepticism over whether the wells could produce enough crude over a long enough period of time to yield significant profits. Shale’s fast pace of development also represented a sea change away from Big Oil’s bailiwick of mega projects that took billions of dollars and as much as a decade of planning and construction to come to fruition.  
Attitudes began to soften at the start of the last decade when Exxon and Chevron began dipping into the natural gas side of shale exploration, followed a few years later by ventures into oil-heavy fields such as the Permian. 

Still, major companies right now only control about 15% of the Permian region’s overall production, which means there is ample room for more consolidation.

Pioneer represents a rich target for Exxon because of its huge portfolio of yet-to-be-drilled prospects, much of which is adjacent to or very near the suitor’s current operations, Arun Jayaram, an analyst at JPMorgan Chase & Co., wrote in a note to investors on Friday. 

bloomberg.com 10 06 2023

Share this news

Leave a Comment


 EnergiesNet.com

About Us

 

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas,
Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com


CopyRight©1999-2024, Petroleumworld.com
, EnergiesNet.com™  /
Elio Ohep – All rights reserved
 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the materia

 

Energy - Environment

No posts found!

Point of View

EIA Total Energy Review
This Week in Petroleum