Regardless of the oil prices decreasing, Chevron, like many other oil companies operating in Texas, isn’t worried of production rates lowering.
Chevron, based in San Roman, California, issued its quarterly results last Friday, and the company’s production average was 731,000 boe/d just in North America, which represents about 30 percent of Chevron’s upstream volumes. Chevron has six different business units ranging from the deepwater of the Gulf of Mexico to Canada. Yet, many questions were asked about the company’s unconventional operations, mainly those in the Permian Basin where it has been active since 1920. In just recent years, the company has been reactivating and expanding its position in the Permian.
Jeff Shellebarger, president of Chevron’s North America exploration and production business, commented on Chevron’s production in the Permian Basin:
We are not in a drill-or-drop situation … Our low lease holding costs allow us to focus on the highest return projects in a paced manner while leveraging industry learning’s. Our efforts on lowering cost while simultaneously increasing production rates and ultimate recoveries are helping to improve overall well and program economics.
The main focuses for many onshore operators have been optimizing well placements and lateral lengths. Chevron, to decrease costs, has developed several joint development agreements in the Permian to ensure an efficient build out of takeaway capacity and infrastructure.
Shellebarger expressed the company’s expectancies for its 2014 unconventional plays production:
We are anticipating that our 2014 unconventional production will be more than 10% higher than initially forecast and our long-term unconventional production growth continues to steepen.
To read the full article about Chevron’s nonstop production in the Permian by Natural Gas Intelligence, click here.