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Post by bjspokanimal on Apr 1, 2024 21:19:29 GMT -5
Surprising they could close the deal before learning the fate of Stabroek arbitration since Stabroek is the reason for Chevron's interest in Hess.
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Post by Blitz on Apr 26, 2024 7:19:27 GMT -5
Today on CNBC, Exxon's CEO said the lawsuit is over the 'added value' they created that they should be compensated for. Since XOM wrote the governing documents, the CEO thinks they'll be compensated. So, much like a divorce when there's business growth involved, you get to keep what was yours before the marriage, but the added value gets divided. Sounds easy peasy and straightforward, right...
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Post by kingrig on Apr 26, 2024 7:46:40 GMT -5
Today on CNBC, Exxon's CEO said the lawsuit is over the 'added value' they created that they should be compensated for. Since XOM wrote the governing documents, the CEO thinks they'll be compensated. So, much like a divorce when there's business growth involved, you get to keep what was yours before the marriage, but the added value gets divided. Sounds easy peasy and straightforward, right... it’s always about money
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Post by pyromancer157 on Apr 28, 2024 22:27:44 GMT -5
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Post by bjspokanimal on Apr 28, 2024 23:57:27 GMT -5
The jury is out in terms of the best Deepwater development in history. Venus and Mopane are very compelling giant discoveries.
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Post by Blitz on Apr 29, 2024 10:15:43 GMT -5
Guyana will be one of the most successful deepwater developments in history – Exxon CEO OilNOW - April 27, 2024 oilnow.gy/featured/guyana-will-be-one-of-the-most-successful-deepwater-developments-in-history-exxon-ceo/ExxonMobil’s Chief Executive Officer (CEO) and Chairman of the Board, Darren Woods, hailed Guyana’s oil story as one that will be well remembered in the history of the oil and gas sector. “I believe Guyana will go down as one of the most successful deepwater developments in the history of the industry,” Woods told investors during the company’s 2024 first-quarter earnings call. Woods said Exxon has created tremendous value in Guyana as operator of the Stabroek Block, “the world’s most premier deepwater development” He outlined that production started in 2019, ramping up to more than 600,000 barrels per day (b/d) in the first quarter. This was owed to the start-up of the Prosperity floating production, storage and offloading (FPSO) vessel, which Wood said was done ahead of schedule and below cost. The Payara project reached its target production of 220,000 barrels per day (b/d) in January. Woods said this was two months after start-up and well ahead of the industry average of 15-months. He noted that the company continuously looks for debottlenecking opportunities to increase production. “All three FPSOs are now producing above their funding basis, helping to drive record gross production in the first quarter, all with an emissions intensity amongst the lowest in our Upstream portfolio,” Wood stated. ExxonMobil has three more development projects, slated to begin production in 2025, 2026, and 2027. Each project will add production of 250,000 b/d, taking total oil production offshore Guyana to more than 1.3 million b/d. Woods said that Exxon’s work in Guyana delivers tangible benefits for the Guyanese people, including driving the highest growth in real gross domestic product (GDP) in the world. He also expressed that the oil and gas industry directly supports thousands of local suppliers and Guyanese workers. ExxonMobil is also supporting a Gas-to-Energy project, which Woods said has the potential to significantly increase reliability and reduce both the cost of electricity and its greenhouse gas emissions. The Exxon CEO also defended Exxon’s recent action to file arbitration proceedings at the International Chamber of Commerce in London, in relation to Chevron’s plan to acquire Hess Corporation. “We believe the proposed Chevron/Hess transaction, in ignoring pre-emption rights triggered by a change in control, diminishes an element of value due ExxonMobil. We believe it is critical to defend these rights and fully preserve the value we‘ve created,” Wood stated. Arbitration, Woods added, will allow Exxon to fully evaluate options to maximize the value to the company and its shareholders. Exxon and CNOOC have merged their claims at the London Chamber. The case could delay Chevron’s acquisition of Hess to 2025.
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Post by Blitz on May 13, 2024 7:23:44 GMT -5
I think this M&A would help keep overproduction in check. Overproduction leads to an oversupplied market space. That leads to lower prices. That helps consumers. So, Schumer has a point. On the other hand, I think curbing overproduction helps RIG & Big Oil because it stabilizes oil prices. And now this... Senate Majority Leader Calls on FTC to Stop Chevron-Hess Merger By Irina Slav - May 13, 2024, 3:30 AM CDT oilprice.com/Latest-Energy-News/World-News/Senate-Majority-Leader-Calls-on-FTC-to-Stop-Chevron-Hess-Merger.htmlSenate Majority Leader Chuck Schumer called on the Federal Trade Commission to stop the merger between Chevron and Hess Corp., claiming it would be detrimental to consumers. “I’m sounding the alarm against yet another proposed Big Oil merger—a $53B deal between Chevron and Hess,” Schumer wrote on X on Sunday. “It would give Big Oil more fuel to raise gas prices. Trump might be hosting dinners for Big Oil execs, but the FTC should side with consumers and pump the breaks on this deal,” the Senate Majority Leader wrote. It has been a long-running claim of Democrat lawmakers that consolidation in the energy space would lead to higher retail prices for fuels. On these grounds, Democrats in Congress have attacked all major deals from the past couple of years as consolidation gained momentum. Earlier this year, Schumer led a group of 22 senators to call on the Federal Trade Commission to look into the tie-up between Exxon and Pioneer Natural Resources, and the Chevron-Hess deal. “Exxon’s and Chevron’s operations downstream would enable them to redirect Pioneer’s and Hess’s crude supply to themselves, away from (and possibly to the detriment of) their midstream competitors,” the group wrote in a letter to the FTC. “These new market dynamics could result in price hikes for midstream customers, and such added costs are often passed downstream to retail customers, including drivers at gas stations.” Despite the legislators’ push, the FTC greenlit the merger between Exxon and Pioneer on the condition that former Pioneer CEO Scott Sheffield would not join the board of the combined company following allegations of collusion with OPEC to control oil production to keep prices higher. The Chevron tie-up with Hess already faces a challenge in the face of Hess’ partner in Guyana, Exxon, which claims it has right of first refusal to Hess’ stake in their joint project there. By Irina Slav for Oilprice.com
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Post by bjspokanimal on May 13, 2024 11:59:34 GMT -5
No mention of economies of scale from the merger, or Chevron's deeper pockets that would direct more cap-ex to Stabroek, develop production faster, increase global supply, and drive prices lower, when Stabroek is viewed in isolation.
Of course, nothing is in isolation. This merger is miniscule when viewed in the context of global oil supply and demand. Midstream players bid for supply from all sides, including the Saudis.
In the global view of things, a stronger Chevron and Exxon (2 of many U.S. oil companies like conoco, oxy, etc) positions U.S. IOCs better opposite major NOCs like Petrobras (half govt. owned), Aramco, Pemex, etc.
Think of it like Schumer, Warren, Sanders and other congressional socialists breaking up Boeing, one party to a duopoly with Airbus. Breaking up Boeing would hand world dominance to Airbus overnight. Sure, in a captive geography, anti-trust makes sense, but these are global industries with U.S. IOCs effectively competing with government controlled and subsidized giants. New York, Vermont and MA elect idiots to the Senate, so we get idiot stuff like this.
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