SEATTLE (Oil Monster): ExxonMobil and Chevron announced plans to significantly boost production activities in the Basin.
The move by ExxonMobil comes ahead of the announced acquisition of Pioneer Natural Resources, which is set to redefine the energy landscape in the Basin. The merger will further enhance its presence and production capacity in the region. The company aims to capitalize on the emerging opportunities in the Basin so as to boost its production by approximately 1.3 million barrels per day.
Chevron has set ambitious production targets in response to evolving market dynamics. The plans to boost production in the region are in line with the forward-looking approach by key industry players to adjust themselves with changing market conditions.
According to the latest data released by the Railroad Commission of Texas, a total of 799 new drilling permits were issued in the month of January 2024, comprising of 748 permits for oil and gas wells. The majority of these permits were towards drilling activities. Out of this, 381 permits were allocated to the Midland district. The data suggests ongoing momentum in drilling activities and boosted exploration and development efforts across the region.
Both Chevron and ExxonMobil recorded second-biggest annual profits in a decade, mainly driven by the U.S. oil boom.
