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Chevron Announces Intent to Divest Oil and Gas Properties in New Mexico and Texas
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According to Reuters, Chevron has recently made additional assets available for acquisition in both New Mexico and Texas.
As part of its strategy to streamline operations following significant shale acquisitions, Chevron is reportedly offering multiple oil and gas properties for sale in New Mexico and Texas. Marketing documents reviewed by Reuters reveal the company's intention to divest these assets.
Despite its prominent position as the largest publicly-traded oil and gas producer and property owner with 2.2 million acres in the Permian Basin of West Texas and New Mexico, Chevron has been actively divesting properties in the region. This divestment aligns with Chevron's efforts to optimize its portfolio and focus on its core operations.
Chevron has recently initiated the auction process for two parcels of land, with details available on the EnergyNet online auction site.
- Parcel 1: Located in New Mexico, it encompasses 2,134 net acres.
- Parcel 2: Situated in both New Mexico and Texas, it covers an area of 29,901 acres.
The estimated combined value of these parcels is approximately $100 million, as per a source knowledgeable about the valuation of shale assets. Interested parties are required to submit their bids by July 27, according to the marketing brochures.
The larger parcel (Parcel 1) is anticipated to have a production output of around 770,000 barrels of oil and gas net. On the other hand, the smaller parcel (Parcel 2) is expected to yield approximately 1,818 barrels of oil and gas equivalent (boe) per day, according to the available documents.
Side deals
Chevron, the second-largest oil and gas producer in the United States, recently finalized a stock-and-debt deal worth $7.6 billion to acquire shale firm PDC Energy Inc. This acquisition comes after Chevron's notable purchase of Noble Energy in 2020, which significantly expanded the company's U.S. shale and international gas assets.
Chevron is currently engaged in discussions with Algeria, which possesses abundant shale gas reserves, regarding the acquisition of drilling rights. This potential agreement is anticipated to be concluded by the conclusion of this year. Recent reports have indicated that Chevron has initiated the procedure to divest its oil assets in the Democratic Republic of Congo. Industry experts estimate that these assets in Congo could yield up to $1.5 billion for the American oil giant.
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Civitas Makes $4.7B Entry into Permian Basin
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Civitas Resources Expands into Denver-Julesburg Basin through $4.7B Cash and Stock Deals for NGP's Tap Rock and Hibernia. Civitas Resources has recently secured two definitive agreements to expand its presence in the Permian Basin's Midland and Delaware basins. The company will achieve this expansion through the acquisition of two private exploration and production companies, namely Hibernia Energy III LLC and Tap Rock Resources LLC. The total value of the deal, paid in both cash and stock, amounts to $4.7 billion. Both Hibernia Energy III LLC and Tap Rock Resources LLC are supported by NGP Energy Capital Management LLC. These acquisitions reflect the increasing demand for oil and gas reserves in the Permian Basin, with companies specializing in the region actively seeking new opportunities. Currently, Civitas Resources' primary production operations are focused in the Denver-Julesburg Basin (D-J Basin).
Chevron to Sell Stake in Canada’s Duvernay Shale
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Chevron is selling its Canadian shale production operations as part of a wider plan to concentrate its investments on more profitable projects in the United States.
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The pipeline industry in the USA faced and still faces a range of regulatory challenges, including permitting delays, environmental requirements, and public opposition to pipeline projects. In recent years, pipeline projects like the Keystone XL and Dakota Access pipelines had legal and regulatory obstacles that delayed or canceled their construction. Keystone XL Pipeline, proposed by TransCanada in 2008, aimed to transport crude oil from Canada (around Calgary and Edmonton) to refineries on the Gulf Coast (Port Arthur). The project faced opposition from environmental groups and indigenous communities, who argued that it would contribute to climate change and pose a risk to water resources. In 2015, President Obama rejected the project, citing concerns about its environmental impact. However, in 2017, President Trump revived the project, leading to further legal challenges. In June 2021, U.S. President Joe Biden officially canceled the project on his first day in office.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/282_Blog_Renewable Natural Gas How RNG Changes the Industry.jpg)
The renewable natural gas (RNG) industry in the United States is showing promising signs of growth. As of 2019, the U.S. consumed 261 billion cubic feet (BCF) of RNG, primarily utilized by independent power producers, electric utilities, and various commercial and industrial entities. However, this figure represents only a small fraction of its potential. Research indicates that the U.S. could theoretically produce up to 2,200 BCF of RNG through anaerobic digestion alone, which would equate to about 11% of daily national natural gas consumption.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/295_Blog_Renewable Efforts Lag as Global Oil and Gas Demand Continues to Rise.jpg)
Recently, the progress toward an energy transition is hitting a snag. Sales of electric vehicles are decelerating, and the growth in wind and solar power needs to be keeping pace with expectations. To make matters more challenging, electricity prices are climbing when they were expected to fall. Amidst these setbacks, the oil and gas sectors are proving resilient. According to BP's latest energy outlook, not only are these energy mainstays here to stay, but their demand is expected to remain relatively high even after reaching a peak. Interestingly, BP forecasts that oil demand will reach its zenith next year, marking a critical moment in energy consumption trends. This isn't the first time BP has projected a peak in oil demand. Back in 2019, their review anticipated a decline in demand growth, but the prediction fell flat. Instead, oil demand surged to unprecedented levels following the end of the global pandemic lockdowns, defying previous forecasts and underscoring the enduring dominance of traditional energy sources in the global market.