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Permian Basin

All articles tagged with #permian basin

Texas clears 400-plus miles of 765-kV lines to power Permian Basin amid landowner backlash
energy1 month ago

Texas clears 400-plus miles of 765-kV lines to power Permian Basin amid landowner backlash

Texas regulators unanimously approved amendments to two CCNs to allow Oncor to build more than 400 miles of 765-kilovolt transmission lines spanning at least 30 counties to alleviate a long-running West Texas energy bottleneck and support oil, gas and industrial manufacturing, as part of the Permian Basin Reliability Plan. The decision, which could pave the way for construction pending possible legal challenges, came despite heavy landowner opposition and calls from some lawmakers to pause and reform the process; a separate Howard Solstice line decision was tabled. Proponents say the lines will improve reliability and interconnection to the ERCOT grid, while critics warn of environmental and property impacts and potential cost increases for consumers.

Big Oil defies White House drilling push as prices surge
business5 months ago

Big Oil defies White House drilling push as prices surge

ExxonMobil and Chevron refused to shift their prewar production plans despite White House calls to boost drilling amid a global energy crunch from Middle East tensions; they say their strategy remains focused on growing free cash flow rather than production. In Q1, profits fell due to hedge losses, though refinery runs stay high and production gains from Hess integration and Permian output are being pursued within their long-term plans.

US Drilling Activity Tapers as Oil Prices Rally, Rig Count Falls to 550
energy7 months ago

US Drilling Activity Tapers as Oil Prices Rally, Rig Count Falls to 550

U.S. active drilling rigs fell to 550 this week (down 43 YoY), with oil rigs at 407 and gas rigs at 134. Weekly crude production slipped 33,000 bpd to 13.702 million bpd. In the Permian, rigs rose by 1 to 240 while Eagle Ford kept at 40. Oil prices advanced ahead of the data, with Brent around $72.49/b and WTI near $66.61, helping explain the pause in drilling.

Devon and Coterra Merge to Create a Dominant U.S. Shale Player in $58 Billion Deal
business8 months ago

Devon and Coterra Merge to Create a Dominant U.S. Shale Player in $58 Billion Deal

Devon Energy and Coterra Energy announced an all-stock $58 billion merger to form a larger Permian-focused shale producer, with Devon owning about 54% of the combined company. The deal values equity at roughly $21.4 billion and would yield pro forma 2025 production above 1.6 million boe/d, centered in the Delaware Basin. The merged entity will be based in Houston, with Devon CEO Clay Gaspar leading and Coterra CEO Tom Jorden as non-executive chairman; closing is expected in Q2 2026.

Trump’s cheap-oil pledge could tighten Texas’s oil-town budgets
business8 months ago

Trump’s cheap-oil pledge could tighten Texas’s oil-town budgets

Trump’s pledge to push oil prices to $50 a barrel could dent Texas oil production and shrink tax revenue, threatening jobs and local budgets in oil-heavy regions like the Permian Basin. Analysts say there would be winners and losers: producers may cut output and capital spending to survive, even as cheaper gas hits consumers in the short term; long‑term regional economies could face volatility. Texas needs about $62 per barrel to cover drilling costs, so a drop to $50 would squeeze profits and could trigger layoffs and lower local government revenue.

U.S. Shale Oil Boom Shifts from Money Treadmill to Cash Cow, Says Chevron President
business1 year ago

U.S. Shale Oil Boom Shifts from Money Treadmill to Cash Cow, Says Chevron President

Chevron has shifted from aggressive growth in U.S. shale to focusing on profitability and efficiency, leveraging scale and technology to turn shale into a cash-generating asset, while expanding internationally through acquisitions like Hess and offshore projects in Guyana, aiming to stabilize U.S. production and prioritize shareholder returns.

New Era Helium's AI Data Center Plans Boost Stock and Texas Infrastructure
business1 year ago

New Era Helium's AI Data Center Plans Boost Stock and Texas Infrastructure

New Era Helium is advancing its AI infrastructure plans in the Permian Basin through its joint venture Texas Critical Data Centers, which is in active discussions with large enterprise customers and seeking land for expansion. The company is also adding new board members with expertise in energy, infrastructure, and digital innovation to support its growth strategy, aiming to leverage local energy resources to meet rising AI computing demands.

Chevron Shifts Focus from Expansion to Financial Prudence
business1 year ago

Chevron Shifts Focus from Expansion to Financial Prudence

Chevron plans to slow its production growth in the Permian Basin, the largest US oil field, signaling a challenge to President-elect Donald Trump's goal of increasing American energy output. The company will reduce capital expenditures in the region by up to 10% in 2025, focusing on free cash flow over production growth. This move is expected to benefit OPEC as it struggles with a global oil glut. Despite the slowdown, Chevron aims to continue increasing production, albeit at a reduced rate, as it approaches its target of one million barrels a day.

Chevron Tightens Belt with Budget Cuts and Job Reductions
business1 year ago

Chevron Tightens Belt with Budget Cuts and Job Reductions

Chevron announced it will reduce its capital spending for 2025 to $14.5bn-$15.5bn, marking the first cut since the pandemic-induced oil crash. This decision comes amid concerns of global oil oversupply and contrasts with President Trump's push for increased US energy production. Chevron plans to focus on high-return, lower-carbon projects and will continue to invest in the Permian Basin, albeit with reduced production growth. The company also plans significant cost-cutting measures, including a restructuring charge and asset impairments.