Monday, February 19, 2018

Chevron Atlas Energy

November 12, 2010 by  
Filed under Featured, WORD OIL

Chevron sees Atlas output surge

Oil and Gas Magazines – Chevron expects Atlas Energy, which it has agreed to buy for $3.2 billion, to ramp up output to 100,000 barrels of oil equivalent per day, or more than seven times current production.

Company boss John Watson, who did not give a timeline for the increased production from Chevron properties in western Pennsylvania, said today that his company passed up on several shale investment opportunities over the past few years because they did not make sense financially.

“We’ve waited to get the kind of terms that would give us the control that we wanted in the business,” Watson told the Bank of America Merrill Lynch Global Energy Conference, two days after Chevron announced the Atlas deal, Reuters reported.

Chevron will make more acquisitions in the years ahead, but he added: “We’re not in a position where we have to do a particular acquisition.”

The California-based company expects its own production to increase 3% this year, to 2.78 million barrels of oil equivalent per day, with annual growth of 1% projected through 2014, and rises of 4% to 5% in the three years after that.

Affirming Chevron’s commitment to the deepwater Chevron, Watson also told the conference in Miami that it has equity interests of 50% or more in the top 45 prospects in the Lower Tertiary trend in the Gulf.

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