Here Come the Big Daddies – Part II
When you’re among the largest oil companies in the world but late to the Permian Party, how do you score a sweet dance card? Reese Energy Consulting today revisits our “Here Come the Big Daddies” post a month ago when Exxon, BP and Chevron announced their Permian plans to go big or go home. And they’re not riding into the sunset any time soon. While independents are conservatively focused on increasing production from existing assets, the Big Daddies are doubling down with a massive amount of green to grow their Permian presence. Between the billion-dollar acquisitions of independents like Anadarko Petroleum by Chevron, and large independents making sizeable purchases of their own, the Wild, Wild West is in a full, sweaty gallop. Not quite a year ago, BP paid $10.5 billion for most of BHP Billiton’s U.S. onshore assets, which included a huge swath of Permian acreage and infrastructure marking BP’s foray into Permian Candyland. Last week, BP announced it would boost its 2019 capital expenditures to include the Permian from $1 billion last year to as much as $2.5 billion. Oh, Daddy…