It’s true, the Permian is—and likely will remain—the center of attention for the US oil and gas industry, not only because of its massive and still growing production volumes, but also because of the ongoing consolidation among producers in western Texas and southeastern New Mexico in Mexico. But while the Permian has dominated production and M&A activity over the past two years, Chevron’s recently announced $7.6 billion acquisition of Denver-Julesburg (DJ)-focused PDC Energy highlights the potential of producers to generate significant production and profits from other important regions of the US. , including the Rocky Mountains. In today’s RBN blog, we look at Chevron’s latest mega-deal and its impacts on the buyer, the seller, and the oil and gas industry at large.
In an iconic 1976 New Yorker magazine cover (see photo below), artist Saul Steinberg illustrated how New Yorkers see the rest of the world, filling two-thirds of the page with a block-by-block view of West 9th Manhattan .th Avenue to the Hudson River, then fades into a narrow strip of land representing New Jersey through Los Angeles before merging with the Pacific Ocean. Small hills on the far horizon show China, Japan and Russia. His point: To a New Yorker, nothing west of the Hudson really matters. A complementary 2023 representation of the Permian-focused coverage of the US oil and gas industry would show west Texas and southeastern New Mexico at the forefront, dominant and in detail, with other unconventional plays only minor and unimportant points in the distance.
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