Chevron in the Permian

This was a quote I recorded about 2 years ago today? Chevron (NYSE: CVX) said it would shut down 400,000 bpd and scrap 60 percent of its drilling rigs. In the Permian, Chevron cut rigs from 17 to 5.

Where is Chevron today…do they still have the acreage? Have they picked up drilling or production in the Permian yet? What a difference 2 years can make…like a lifetime.

They were supposed to spud the CMC Candlestick wells south of Midland on the Bradford lease. Last i heard they were expecting to start Dec 21.

Chevron is committed big time to the Permian, CEO earnings webcast last Friday Chevron said 20% of their global Capital Expenditures are in the Permian, they acquired Noble last year, have huge acreage in Culberson County I think joint with Coterra (FKA Cimarex) as operator in Culberson.

Saw this today… Chevron raised its production target for the Permian by 15% vs 2021 levels, starting expecting to produce 725,000 b/d,

Chevron is still only running 6 rigs in Permian. They have so much non-op and royalty interest that they are going to make a ton of money (at these prices) just based on other people drilling wells.

CVX a pretty patient long-term player IMO.

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Chevron has applied and drilled 6 (?) CO YETI 15-22 wells in Section 15 T25S, R32E Lea County NM. The reason I typed (?) is Im not sure if all 6 have been completed. Perhaps NMoilboy might have the answer to that. We have a very small ORRI in these wells and receive royalties on 2 CO YETI Units. So yes Chevron is drilling in the Permian Basin although I think these wells are in the Delaware Basin.

Permian = Delaware Basin + Central Basin Platform (old vertical wells mostly) + Midland Basin

All six of those CO Yeti wells have been online since March 2021. They are…umm…pretty good. If you are into your wells making > 1000 bopd for a year etc.

Thank you NMoilboy for your post. We must have three wells associated with each “Unit”. The statement we receive each month doesnt break the production down by well, just Description breakdowns by “WC” and “BS” and by products; I.E. ngls, oil, & gas.

That is probably the case, a Wolfcamp “unit” and a Bone Spring “unit”. Can fairly easily confirm by looking at the (gross) oil volumes you are getting paid on (for Feb for example) vs what the NMOCD shows for those wells and see if it roughly adds up to the total. Here was the data for the last 4 months. Freeze in Feb was no bueno for the volumes.

Good place to be.

Chevron sold off its interests in Appalachia to EQT last year due to capital allocation concerns. One of the primary reasons why they got out of Appalachia shale oil scene was so they could invest more heavily into the Permian Basin. This decision was certainly a bullish decision by management as it relates to the Permian. So yes, what a difference a couple of years can make in this business.