Chevron Celebrates Big Victory in Fight With Exxon
Exxon, which operates and owns 45% of Guyana's offshore Stabroek Block, claimed it had a right of first refusal over the disposition of Hess's 30% stake. Acquiring Hess and its interest in Guyana significantly increases the quality of Chevron's oil assets beyond the Permian Basin of Texas and New Mexico, narrowing the gap with Exxon. 'This creates a premier international and oil and gas company,' declared Chevron Chief Executive Officer Mike Wirth. Meanwhile, some hedge funds are really cashing in on the deal.
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Yahoo
an hour ago
- Yahoo
Methane Emissions Intensity of Permian Basin Declined by More than Half in Two Years, New S&P Global Commodity Insights Analysis Finds
New analysis provides the most accurate public, basin-wide estimate of methane emissions for the Permian HOUSTON, July 24, 2025 /PRNewswire/ -- The methane intensity of oil and gas production in the Permian Basin—an area responsible for half of U.S. oil production and one fifth of natural gas—declined by more than 50% during the 2022-2024 period as improved operations, better equipment and the utilization of AI and other advanced technologies led to reductions across all observable plume rates (large and small), according to a new analysis by S&P Global Commodity Insights. The latest data for the year 2024 show the methane emissions intensity of upstream oil and gas operations in the region to be 0.44% per barrel of oil equivalent—a 29% reduction from the previous year. Absolute annual 2024 methane emissions decreased by 21.3 billion cubic feet (bcf), a 22% decline from the previous year. Given that methane is a potent greenhouse gas, the reduction was equivalent to 11.1 million tons of carbon dioxide emissions avoided (100-year equivalency factor of 28*). Since the end of 2022, absolute emissions have declined by 55.2 bcf, equivalent to 28.8 MMT of carbon dioxide emissions avoided. To put the numbers into perspective, the 28.8 MMt CO2e reduction in absolute methane emissions over a two-year period was: Roughly equivalent to emissions from the nation of Lithuania 15% greater than the emissions avoided by all electric vehicles sold in the United States and the European Union 50% greater than the total emissions reductions in the UK power sector Equal to 2.2 billion trash bags recycled instead of landfilled Greater than the greenhouse gas emissions from cooling and heating all the homes in California The findings of the latest analysis for Permian upstream methane, produced in partnership with leading methane management firm Insight M, are based on high frequency observation data that include more than 500 high-resolution aerial surveys covering 90% of the basin's production to provide the most accurate, basin-wide estimate of methane emissions. "Access to reliable methane data is crucial to provide critical context to benchmark and allow companies to differentiate themselves and truly compete on carbon," said Kevin Birn, Head of the Center for Emissions Excellence, S&P Global Commodity Insights. "Whereas data quality still varies globally, improvements in access to reliable observation data in places like the Permian are leading the way and allow us to more credibly measure the impact of emissions mitigation efforts." The overflight data to which S&P Global Commodity Insights has access showed reductions across all observable plume rates, from large (1000+kg per hour) to small (10kg per hour) emissions. The continued emissions reductions occurred despite the relatively low commercial value of gas in the region, where the annual average price for those selling gas on the spot market was just $0.02 in 2024 due to oversupply and a lack of takeaway capacity. Consequently, the lost economic value (i.e. had the gas been captured and sold) from fugitive emissions equated to just 0.002% of total 2024 hydrocarbon revenues, the analysis reveals. The analysis attributes the continued breadth and depth of the emissions decline to ongoing improvements in equipment as well as increasing deployment of new technologies—from AI-driven analysis of operational data to on-the-ground sensors, aircraft overflights and satellites—that make it possible to detect leaks with greater speed and accuracy. "Methane emissions management is being increasingly normalized as part of field operations. It's becoming a standard and accepted part of the field staff's responsibilities," said Raoul LeBlanc, Vice President, Global Upstream, S&P Global Commodity Insights. "At the same time, oilfield service manufacturers are now producing equipment that includes emissions reduction as an important feature, and operators are increasingly utilizing AI and machine learning to not only 'find and fix' but 'predict and prevent' emissions." About the analysis Produced by S&P Global Commodity Insights Center for Emissions Excellence in partnership with Insight M, the Permian upstream methane analysis combines near-total coverage of the basin and high frequency observations to provide the most accurate public, basin-wide estimate of fugitive methane leaks and venting released to date. Frequency: The 2024 observed data is derived from roughly 529 survey flights which took place on 175 separate days spread over the course of the year. Coverage: 81.8% of the 161,000 active Permian wells, (78.5% of conventional wells and 88.6% of unconventional wells) Assets supplying 90.0% of the 3.9 billion boe produced in 2024. Resolution: Overflights offer a level of resolution that is up to 5 times greater than that of satellites, providing reliable attribution not only by facility, but in most cases to specific assets or pieces of equipment. Threshold: Measurements taken detect emissions as low as the range of 50-10 kg/hr depending on the specific overflight. These observed volumes account for more than 68% of total methane released to the atmosphere from upstream oil and gas operations. The volumes from all sources below this threshold were estimated using the Rutherford model developed by Stanford University and included in the totals used in the analysis. More information on the methodology employed by Insight M can be found here. Global Warming Potential Factor: S&P Global Commodity Insights conversion of methane to CO2 equivalency are based on a Global Warming Potential (GWP) factor for 100 years of 28 tons of CO2 per ton of methane. Using the 20-year factor of 86 would thus increase both the emissions reduction and the continuing emissions to 3.07 times the figures cited in this report. * Compared with a ton of CO2, a ton of methane (CH4) absorbs more energy and thus has a greater impact on earth's warming. However, methane stays in the atmosphere for only about a decade, whereas CO2 persists for hundreds of years. When looked at on a 100-year basis, methane thus has a Global Warming Potential of 27-30 times that of the same mass of CO2. Media Contacts: Jeff Marn +1-202-463-8213, Americas: Kathleen Tanzy + 1 917-331-4607, Melissa Tan + 65-6597-6241, About S&P Global Commodity InsightsAt S&P Global Commodity Insights, our complete view of global energy and commodity markets enables our customers to make decisions with conviction and create long-term, sustainable value. We're a trusted connector that brings together thought leaders, market participants, governments, and regulators and we create solutions that lead to progress. Vital to navigating commodity markets, our coverage includes oil and gas, power, chemicals, metals, agriculture, shipping and energy transition. Platts® products and services, including leading benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights. S&P Global Commodity Insights maintains clear structural and operational separation between its price assessment activities and the other activities carried out by S&P Global Commodity Insights and the other business divisions of S&P Global. S&P Global Commodity Insights is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information visit View original content to download multimedia: SOURCE S&P Global Commodity Insights Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Chevron vs. Shell in Gulf of America: Who's Got the Edge?
Chevron Corporation CVX and Shell plc SHEL are two of the world's biggest energy companies, and both have been drilling for oil and gas in the deep waters of the Gulf of America (GoA) — what we used to call the Gulf of Mexico — for decades. This region is super important because it provides about 14% of all the crude oil produced in the United States, and is known for producing oil that's very profitable and has a lower carbon footprint. For both Chevron and Shell, their operations in the GoA are a vital part of their long-term plans, helping them use their money efficiently and meet their sustainability oil and gas in deep water is entering a new era, with companies using advanced technology and focusing more on reducing emissions. Because these projects cost a lot of money and U.S. energy independence is increasingly important globally, investors are paying closer attention to Chevron and Shell's GoA activities than ever before. Let's take a closer look at both companies to see which might be a better investment right now. The Case for Chevron Stock Chevron is really stepping up its game in the Gulf of America. The company recently started pumping oil from two huge new projects: Ballymore in April 2025, and Whale just a few months before that. Once it's fully running, Ballymore is expected to produce 75,000 barrels of oil per day, while Whale is designed for 100,000 barrels of oil equivalent per day. These two massive projects are key to Chevron's plan to boost its GoA production to 300,000 net barrels of oil equivalent per day by 2026, which is a whopping 50% increase from the 2020 levels!Chevron is combining its many years of offshore experience with new, energy-efficient designs. The company's Anchor platform, which started operating in August 2024, is built to tap into high-pressure oil reserves. Even older facilities, like Tahiti, which has been producing since 2009, are still thriving thanks to updated models and smarter cost management. All these upgrades mean that Chevron's oil from the Gulf is among the most profitable and environmentally friendly in its entire portfolio. Chevron isn't just focused on producing more oil; they are also investing smartly. The integrated major is using simpler designs and building things in pre-made sections to cut down on development time and costs. For example, the Whale facility uses energy-efficient systems to minimize its pollution. This strategy helps Chevron produce highly profitable oil with less carbon, showing they're being financially smart and environmentally responsible. The Case for Shell Stock Shell is a true pioneer in deepwater drilling and remains the biggest producer in the Gulf of America. They were the first company to successfully extract oil from water depths beyond 1,000 feet, way back in 1978. Shell's current list of assets includes major projects like Perdido, Stones, Vito, and Whale, all of which highlight Shell's unmatched ability to operate in extremely deep waters. Sparta, another new project set to begin producing in 2028, will be the next standardized facility in its deepwater portfolio. These projects really show off Shell's engineering skill and its ability to control costs even in one of the toughest drilling environments in the strategic advantage comes from its focus on replicating designs and using robotics. The Vito and Whale projects, for instance, used almost identical designs, which meant engineering work was 50% faster and manufacturing errors were reduced by 75%. Also, in 2024, the Stones project led the industry by using robotic systems to inspect offshore tanks, cutting costs and making operations safer. When it comes to emissions, Shell has already reduced methane output in the GoA by 40% since 2016 and even beat its 2023 emissions target by 5%, further strengthening its reputation for environmental GoA portfolio is anchored by advanced deepwater hubs like Perdido and Stones, among the world's deepest and most complex offshore facilities. These assets support a hub-and-spoke model, enabling efficient tiebacks and extended field life. Upcoming projects like Sparta follow Shell's phased, capital-efficient approach. With high uptime, strong recovery rates, and low emissions, Shell's GoA operations offer reliable cash flow while aligning with its broader strategy of disciplined growth and decarbonization. Price Performance Over the last year, Shell's stock has remained relatively stable, dropping just 0.1%, while Chevron's stock has dipped 3.3%. Chevron's recent underperformance might mean its stock is undervalued, especially if its ambitious Gulf production goals are met on time. Image Source: Zacks Investment Research Valuation Comparison When we look at how much investors are willing to pay for future earnings, Chevron trades at 18.26 times its forward earnings, while Shell trades at 11.29 times. Chevron's higher value likely reflects expectations of better profit margins from its growing GoA projects and the positive impact of recently acquired high-value assets from Hess. Image Source: Zacks Investment Research Earnings Outlook The Zacks Consensus Estimate sees Chevron's EPS to drop by 27% in 2025, but then bounce back strongly with a 23% increase in 2026. Image Source: Zacks Investment Research Shell's EPS is projected to fall by 20% in 2025, with a slower recovery of 10% in 2026. Image Source: Zacks Investment Research Conclusion Chevron and Shell are both powerful players in the Gulf of America, bringing decades of experience together with modern efficiencies and a good environmental track record. Shell stands out for its sheer size, innovative spirit, and ability to replicate successful projects. Chevron, on the other hand, offers a more focused strategy in the Gulf, with a clearer outlook for higher profit margins and stronger production both companies currently carrying a Zacks Rank #3 (Hold), investors might find it tough to pick a clear winner. However, Chevron seems to be in a slightly better position right now. This is due to its very clear production targets, smart spending, and a projected stronger rebound in earnings. That said, both stocks remain compelling options for investors looking for high-quality exposure to one of the world's most resilient and environmentally conscious offshore oil basins. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
USA Today
4 hours ago
- USA Today
In-N-Out owner places order to go − out of California
California's progressive policies have pushed out major employers like Tesla, Chevron and Hewlett Packard. Now, the owner of In-N-Out says she and her family are leaving her home state. One of the simple joys my kids and I experienced when we moved to Texas was finally living near an In-N-Out. We've savored the classic California brand's West Coast vibe, Double-Doubles and Animal Style Fries. Plus, I can feed the five of us for less than $50. Not a bad deal, in this economy. I'm not the only one thinking about the economics of In-N-Out. The burger chain's owner, Lynsi Snyder, has announced she is evacuating from deep blue California for the friendlier environs of red state Tennessee, where the company her grandparents founded in 1948 is building a second corporate headquarters. Snyder said she's leaving the West Coast for the Mid-South for the sake of her family and her business. 'There's a lot of great things about California, but raising a family is not easy here," Snyder told podcaster Allie Beth Stuckey on July 18. "Doing business is not easy here." Opinion: What if I told you conservative women, not liberals, embrace true feminism? I can't blame Snyder for giving up on California. She'll join business leaders like Elon Musk, companies like Chevron and Tesla, and hundreds of thousands of regular people who've fled California for better lives and better business opportunities in other states. California is a bastion of liberalism that's pushed tax rates and the cost of living to ridiculous extremes even as residents' quality of life has declined. In-N-Out owner checks out of her home state The fact Snyder is leaving the state where her family made its fortune nearly 80 years ago is yet another indicator of California's decline. Snyder said state policies, including draconian restrictions during the COVID-19 pandemic, have made it difficult for businesses to operate. People and companies are not just fleeing California − in many cases, they are relocating to red states with a drastically different approach to politics and policy. My home state of Texas in recent years has become the new home of choice of many former California enterprises such as Hewlett Packard, McAfee, Charles Schwab and Ordinary Californians are leaving en masse too. From July 1, 2023, to July 1, 2024, California lost a net of about 240,000 residents to other states, many to Texas. The state's overall population rose in 2024, after several years of decline, because of immigration from other countries. California, of course, still has extraordinary natural resources, including hundreds of miles of beautiful coastline, majestic mountains, redwood forests, and world-class farmland and vineyards. What it doesn't have are political leaders with economic sense − or common sense. According to Chief Executive magazine's rankings for the best and worst states for business, California landed in last place. A 2021 Cato Institute study of the best and worst states for entrepreneurs found California placed 48th. Gavin Newsom is no moderate. California's progressive failures are on him. | Opinion But California lawmakers still don't understand the assignment. On Jan. 1, the state's minimum wage increased to a whopping $16.50 an hour for all businesses, and fast-food workers are now paid a minimum of $20 an hour. That means business owners either take a pay cut, charge their customers more or eliminate jobs. Or they relocate out of state. The owner of California's iconic burger chain will soon trade the Golden State's beaches for Tennessee's foothills. And if she ever wants to sample the world's best barbecue, she's welcome here in Texas. Nicole Russell is an opinion columnist with USA TODAY. She lives in Texas with her four kids. Sign up for her newsletter, The Right Track, and get it delivered to your inbox.
