(Reuters) – Chevron Corp on Friday said it will buy Anadarko Petroleum Corp for $33 billion in cash and stock as the company doubles down on its bet on U.S. shale oil and gas production, where the surge in output has made the United States the world’s largest energy producer. With oil prices surging this year, Chevron and larger rival Exxon Mobil Corp have been increasing investment in the Permian basin in West Texas, the most prolific shale oil field in the country. Their efforts coincide with a pullback by the smaller companies that revolutionized the industry through shale drilling, who have had to curtail spending due to investor dissatisfaction with weak returns. The deal is the oil industry’s largest since Royal Dutch Shell bought BG Group in 2016, and it sparked speculation that other shale producers are in play. Shares of Apache Corp, which also has extensive acreage in the Permian Basin, jumped 7 percent in premarket trading, while Pioneer Natural Resources Co rose 6 percent. U.S. crude oil production now surpasses 12 million barrels a day (bpd), and the nation is the third-largest producer of liquefied natural gas (LNG), the super-cooled fuel that is seeing record demand as… continue reading
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Source: CTRM Center