Hi! I was fortunate to have Becky Quick ask my question this year at the BRK AGM about OXY and CVX. I was hoping to get a clearer answer than we received. I continue to be puzzled about how what WEB and CTM said about the Permian, and OXY specifically, squares with this March 8th WSJ article about the Permian. Any ideas about this?
I remember reading this back in March and I agree that it would have been nice to hear Warren and Charlie address these concerns about shale production head on.
But this article also seems to be at odds with Occidental's own Permian performance in the first quarter. I included a quote about Oxy's record-breaking production in the Delaware basin portion (specifically Wolfcamp) of the Permian in this post, but Vicki Hollub had much more to say on the recent Q1 2023 earnings call. Hollub: "Our Permian production benefited from strong new well performance and higher operability primarily in the Texas Delaware." She also added that more wells are expected to come online in Q2 than in Q1. The earnings report also indicated that Permian daily production volumes exceeded Oxy's own guidance for the first quarter.
So, while I read that WSJ article with great interest, I haven't really seen its conclusions match up with Oxy's own reports on its performance in the Permian. (I could be wrong about that, of course.)
Excellent write up!
Thanks!
Hi! I was fortunate to have Becky Quick ask my question this year at the BRK AGM about OXY and CVX. I was hoping to get a clearer answer than we received. I continue to be puzzled about how what WEB and CTM said about the Permian, and OXY specifically, squares with this March 8th WSJ article about the Permian. Any ideas about this?
https://www.wsj.com/articles/u-s-shale-boom-shows-signs-of-peaking-as-big-oil-wells-disappear-2adef03f?st=pn54l7ujw2zxusc&reflink=desktopwebshare_permalink
I remember reading this back in March and I agree that it would have been nice to hear Warren and Charlie address these concerns about shale production head on.
But this article also seems to be at odds with Occidental's own Permian performance in the first quarter. I included a quote about Oxy's record-breaking production in the Delaware basin portion (specifically Wolfcamp) of the Permian in this post, but Vicki Hollub had much more to say on the recent Q1 2023 earnings call. Hollub: "Our Permian production benefited from strong new well performance and higher operability primarily in the Texas Delaware." She also added that more wells are expected to come online in Q2 than in Q1. The earnings report also indicated that Permian daily production volumes exceeded Oxy's own guidance for the first quarter.
So, while I read that WSJ article with great interest, I haven't really seen its conclusions match up with Oxy's own reports on its performance in the Permian. (I could be wrong about that, of course.)
Thanks for this reflection. It feels worth keeping an eye on this -- both OXY specifically and reports from other producers.
Yes, I completely agree. Definitely worth keeping an eye on. Thanks for reading!!