Higher oil prices can change the picture for a number of oil companies, offering options they don't have with lower price, as it does with Chevron (NYSE:CVX), which is again investing heavily in the Permian Basin in Texas.
In 2011, Chevron, plans to increase investment to $600 million in the Permian Basin, up 32 percent over last year. They also have a goal of drilling over twice the number of wells they did in 2010.
New technology is a secondary, but important factor in the decision, as the company will be able to extract more oil from aging wells than it could have in the past.
Chevron Vice Chairman George Kirkland recently said to employees, "we listened to veterans here who reminded us that the best place to find oil is where it has already been found."
Exxon Mobil (NYSE:XOM) and ConocoPhillips (NYSE:COP) are also showing renewed interest in the region.
Chevron closed Thursday at $108.94, gaining $0.28, or 0.26 percent.
Friday, April 8, 2011
Chevron (CVX) Targeting Permian Basin Again on High Oil Prices
Labels:
Chevron,
Conocophillips,
ExxonMobil
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment