Patricia Yarrington, the CFO at Chevron had a great quote during the last Chevron earnings call:
“But the value of the Permian and its tremendous economic capabilities and its capital efficiencies provide great flexibility because of its short-cycle, high-return attributes. Yes, other parts of the portfolio have to compete for capital against that. So I think it raises the bar on where that incremental dollar is going to go. Permian will get the first call but we will manage it as a portfolio, and over time you should still expect us to have some significant other projects but we can pace those projects quite nicely I think and match against the opportunities the Permian provides for us.”
The Permian Basin is one of the bright spots in Chevron’s asset base. The total development cost per barrel is only around $18, making this one of the all-weather spots where Chevron operates … Read the rest of this article!