You would think higher oil prices are great for the oil industry and they are. Just look at the stock prices. The real winner, however, will be green energy. When people start paying an arm and a leg to fill up their gas tanks, they are going to wonder whether or not it is time to buy an EV. This is EXACTLY what the administration wants to further their green agenda and to blame rising inflation on. If it were not for the geo-political conflict, the price of oil would not have risen so much. If the price of oil had not risen so much, there would not be so much inflation. Whatever you do, don't look at the massive amount of money printing?
When do you suppose the oil and gas companies are going to announce they are starting up their exploration programs again? How high does the price of oil need to go? I'm not holding my breath. Reserve replacement in 2021 was anemic. I expect it will be similar again in 2022. What we take for granted as normal is unsustainable unless the oil industry starts drilling again.
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Deepwater GOM will be kind of stable production wise till 2027-28:
- Anchor first oil 2025
- whale (40%) partners
- mad dog 2
- ballymore
There are a few other tie back opportunities possible. Anchor will be the last FPU Chevron builds in GOM.
"...Reserve replacement in 2021 was anemic. I expect it will be similar again in 2022..." Definitely. Prior to the 2015 price collapse, reserve replacement was an important metric, one that Wall St. looked at to determine an oil company's health. Now you don't hear any company quoting it, instead laying a smokescreen of diversity, carbon neutral, green transition, social responsibility, etc. The industry has given up on growth and is instead trying to manage the decline.
Chevron’s diversity-run Mexico and Brazil exploration teams aren’t even drilling, let alone finding anything. We’re hoping we can farm in with Shell for some kind of discovery. How the mighty have fallen.
Chevron had a decent deepwater GOM exploration team about 15 years ago, with a string of good (still producing) discoveries. None of the oil finders were ever congratulated, so they were easily poached by other companies. Then Chevron replaced DWEP with the Covington asset disposal team. They sold the shelf, deep water (no Covington-run discoveries or high quality leases) won’t last too much longer.
Exxon has historically been a poor explorer but they really cleaned our clock in Angola, Guyana and Brazil the last 15 years or so.
OP here. Noble was the same way and had a D&I exploration VP that had a series of expensive failed projects like the Falkland's. The exploration team was told that the sand quality would be too poor to be commercial due to volcanic activity at the time of deposition and other reasons. They did the deal anyway. When DS became CEO one of the first things he did was eliminate the exploration program because he was risk averse. Instead, he overpaid for shale acquisitions because they were a resource play and low risk. Well, we all know how that turned out.
OP, take note that Exxon is announcing discovery after discovery in Guyana. Chevron? After putting the "right demographics" in charge of exploration, we haven't found a drop. VP LS does show up as a 'keynote speaker' at all the professional meetings and trade shows. I wonder what she talks about? Maybe our industry-envy diversity program?
Saturday —— Monday
Wow. You all turn it to racist very quickly. Don’t think anyone said you had to be white to find out. Saudi and Iran have proved that statement incorrect.
What have been proven is chevron laid off people who found oil in the past and replaced them with D&I people with limited to no experience. And if you are one of them who is the new chosen one look in the mirror, have you really earned it, are you really the best in the group. We all know the answer.
Anyways. So the questions to you newly appointed leaders with no experience. How are you going to bring new projects to the table with no experience.
Have fun.
Chevron exploration died when MW took over and turned exploration and drilling into his social engineering experiment. Virtually all exploration management and staff have hollow resumes.
Fossil fuels and alternative energy can and must co-exist if our economy is to remain strong. Investments in and innovation of viable alternative energies will always be a good thing, but forcing green energy on everyone and going all out to stifle oil and gas will only result in a setback for our entire country and certain crush the Democrats in the November midterms. The rats in power know they are playing their last hand at the Poker table, but too many things are plaguing them on the world stage and here at home to get their agenda of dominance and control to stick. It’s do or die for them and November is only around the corner.
Even when all the old white blowhards were still around we never had an impact discovery. Just a lot of chatter, some leasing, lots of dusters and few meager discoveries.
I think the point they were trying to make is that a lot of short-sighted personnel decisions are made because HR departments have the McDonald's mindset that everyone is replaceable and the company does not need to keep experienced technical people. You can just replace them with eager beaver youngsters who have never found a single drop of oil in their lives. If Chevron does not have any experience oil finders left, then the cost of exploration is going to be extremely expensive. If all everyone can think about is D&I, then the company is doomed.
@wqu+1fD0Zq9e So you’re saying only white males can find oil? That missionary mentality doesn’t fly anymore, brown people don’t need white saviors.
Need more release trains.
The oil industry already laid everyone off so they don't have the people to ramp things up. No one who had been laid off for the past two years will want to come back just to be laid off again in the future. They are hosed over.
When are the job offers going to be coming in?
When will chevron regret these absolutely garbage raises they just gave us?
Can’t wait for the day of reconning to come down on these decision makers.
We don’t have anyone who can find exploration wells. We laid off all the technical people as they were old white males, we replaced them with D&I candidates that have little to no knowledge in this space. As they were handed the jobs. So explain to me how you find these people who know how to explore and build these complex projects. You don’t your only hope is west Texas. This will keep gas prices high for a long time to come. The war just made it happen faster.
This is not about conspiracies, this is about understanding the trends so you can make money. At some point, not yet, you will need to take profits in Chevron and buy Tesla. That is what I will do.
So Putins war is funded by the green agenda? Ridiculous conspiracy.
Exploration died more ten years ago and no discoveries since.it is not coming back. The org is just window dressing. Management will not approve real investment in this area.
The end of oil industry stated in mid 2014. It will take 2 or 3 more decades to be in the same spot where coal/ tobacco industry is now today, until then it is gradual or accelerated decline. Just try to enjoy little bumps.