The oil price jump is driving a return to activity in the Permian
US majors target Permian cash cow
Lower 48 production in the Texas and New Mexico shale play is poised to generate a mountain of cash over the next half-decade
Oil and gas production from the Permian basin will drive a wall of free cash flow (FCF) over the next few years for the US majors and superindie ConocoPhillips, the companies are forecasting. “We can grow production from 600,000bl/d to 1mn bl/d,” says Pierre Breber, Chevron CEO. “If you think of the biggest growth that we have going forward, clearly it is in the Permian.” Chevron says the latest commodity price swing generated record quarterly FCF for the business in Q3 2021, higher than the strongest quarters in 2008 and 2011, when oil prices were well above $100/bl. The company is guiding more than $25bn in FCF over the next five years, driven by strong projected Permian performance. Che
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