Sign in to follow this  
Followers 0
BL

Bloomberg: Trump's Big Oil Deal depends on Weakest Shale Players Going Bust

Recommended Posts

(edited)

 

https://finance.yahoo.com/news/trump-big-oil-deal-won-025642130.html

Trump never said that .  The author is deducting this reading into Trump's strategy of taking a market approach to reducing U.S. production.

My theory all along.  Personally I think the consolidation is long overdue.  Shale will come out of this stronger , with fewer players and fair pricing for producers and land owners.  Could take a year or more to play out. 

 

Hypothetical : Say Chevron is producing 500k bbls in the Permian.  Chevron then buys a bankrupt shale firm that was producing 100k bbls.  

Does Chevron post acquisition produce 600k ((500k + 100k) or something less.  In other words will the consolidation bring overall U.S. shale production to a lower rate when the same amount of reserves are in fewer hands. 

 

Edited by BLA

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  
Followers 0