US forecasts natural gas output to fall before rising in 2025 due to LNG demand though not return to 2023 record
US Natural gas production is forecast to decline during the coming year and will only increase in 2025, driven by expected higher associated gas output in the Permian Basin of West Texas due to growth in LNG export demand.
American investor Warren Buffett raises stake in US major and LNG operator Chevron to be worth nearly $20Bln
Chevron Corp., the US major oil and gas company with LNG operations in Australia and Africa, has received a vote of confidence from US investor Warren Buffett whose Berkshire Hathaway has taken its stake to almost 7 percent.
Buffett’s Berkshire Hathaway has increased its stake in San Ramon, California-based Chevron by over 15.84 million shares.
This transaction has brought Berkshire Hathaway's total share count in Chevron to 126.09M shares, representing about 5.96 percent of Buffett’s investment portfolio and 6.81 percent of Chevron's outstanding shares.
Lower price
According to Berkshire Hathaway data, the Chevron shares were acquired at an average price of $149.16 each and were valued at $18.80 billion.
Buffett is a celebrity figure among America’s small retail investors and is known to his fans as “The Oracle of Omaha”.
Buffett’s other main energy investment is in Houston, Texas-based Occidental Petroleum which forms 4.19 percent of the Berkshire Hathaway portfolio. The Buffett firm also has a huge 50 percent represented by shares in Apple Inc.
Chevron’s shares have recently risen to $154.63 per share, backed by positive earnings and the company’s acquisition agreement signed in October 2023 with US oil and gas company Hess Corp.
The value of the Buffett stake has already risen and at current prices on February 19, 2024, is now worth just short of $20Bln at $19.49Bln.
Chevron recently reported annual net profits of $21.41Bln, down from $35.60Bln in the previous year, though apart from 2022 the Chevron performance was the strongest since 2013.
LNG projects advance
Chevron listed among its highlights as achieving first natural gas production from the Gorgon Stage 2 development in Western Australia where its operates both the Gorgon LNG and Wheatstone LNG export plants.
Chevron also reached a final investment decision with partners to construct a third gathering pipeline that is expected to increase natural gas production capacity at the Leviathan gas field and a future LNG hub in the East Mediterranean offshore Israel.
The company additionally expanded the Bayou Bend carbon-capture and sequestration project on the US Gulf Coast through an acquisition of nearly 100,000 acres.
However, Chevron assets in the Permian Basin in Texas and New Mexico also helped to underpin the earnings.
Chevron posted an increase in its Permian production by 10 percent in 2023 with US quarterly output coming to 1.16 million barrels per day compared with 895,000 barrels per day, helped by the 2023 acquisition of US independent oil and gas company PDC Energy.
Chevron is also paying $53Bln for New York-based Hess, giving it access to major oil discoveries in the South American nation of Guyana as well as more US shale assets in the Bakken Shale Basin of North Dakota.
US Potential Gas Committee shows world’s No. 1 LNG exporter has record resources in the prime basins
The US Potential Gas Committee (PGC) has released its long-awaited report showing that the world’s No. 1 liquefied natural gas exporting nation has record natural gas resources in the prime basins in terms of recoverable gas and reserves.
Chevron expects even better 2022 led by Permian Basin and Australian LNG after stellar earnings performance
Chevron Corp. expects 2022 it be better than last year with improving Permian Basin activities and steady flows of cargoes from the US major’s two operated liquefied natural gas plants in Western Australia as the company also addressed LNG futures trading and other issues.
US expects natural gas consumption to fall in power sector while data shows steady rise in LNG exports
The US expects that the consumption of domestic natural gas will average 82.9 billion cubic feet per day in 2021, lower than in the previous year as prices rise, while US monthly LNG exports are reaching levels to be just short of shipment totals from the largest global suppliers Australia and Qatar.
US exports six LNG cargoes for second week while rising pipeline exports to Mexico displace shipments
The US exported six liquefied natural gas cargoes for a second straight week as the Gulf Coast recovered from the recent hurricane, while pipeline natural gas exports to Mexico are forecast to rise and to continue displacing LNG shipments.
Shares in US Tellurian LNG firm jump 56 percent to signal deal with Petronet of India may be back on track
Tellurian Inc. appears to be set to renew its preliminary liquefied natural gas supply and equity investment deal with Indian importer Petronet LNG as the US firm’s shares jumped by more than 56 percent on the Nasdaq global exchange after leaks by executives.
Chevron agrees to acquire Noble Energy with Permian Basin assets and East Med gas in $5Bln deal
Chevron Corp., the US major and operator of two world-class LNG export plants in Western Australia, has agreed to acquire Houston-based Noble Energy and its assets in US shale basins and the East Mediterranean, including the Leviathan and Tamar gas fields offshore Israel.
Slowdown in LNG shipments from Gulf Coast will be offset by rise in pipeline gas exports to Mexico
The cancellation of LNG cargoes from Gulf Coast export plants amid over-supply and a price collapse is set to be offset by an increase in pipeline exports to Mexico, the largest component of US natural gas trade and a key take-away portion of still high production levels.
