Big Oil is starting to see its billions worth of investments in the Permian Basin pay off as production soared and the fourth quarter of 2018 brought higher-than-expected profits.
Chevron Corp., one of the biggest producers in the region, as well as Exxon Mobil and Royal Dutch Shell, all reported higher profits thanks to the increased flow of oil out of West Texas.
These oil majors were mocked for nearly missing the shale revolution when they lost out to faster-moving independents a few years ago, but in the years since, they’ve purchased hundreds of thousands of acres in West Texas, investing billions in land, rigs and drilling programs.
Chevron pumped 2.93 million barrels per day in 2018, the highest ever annual production in the company’s history, and Exxon’s production crested 4 million barrels a day for the first time in almost two years. [read more]