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Consolidation Is Key

Consolidation Is Key

RP Weekly Recap | October 19 – 23

Summary

This week, two major U.S. shale acquisitions were officially announced when ConocoPhillips announced their acquisition of Concho Resources and Pioneer Natural Resources announced their agreement to acquire Parsley Energy. The Pioneer all-stock transaction valued at $4.5 Billion (inclusive of Parsley’s debt increases the value to $7.6 Billion) is significantly less than the all-stock transaction of the ConocoPhillips deal valued at $9.7 Billion (inclusive of Concho’s debt increases the value to $13.3 Billion) but is significant nonetheless. Major moves in the U.S. oil and gas sector indicate that consolidation is the future.


COVID-19 Updates

COVID-19 Statistics

  • Number of Cases (Worldwide): 41,923,630 (up from 39,068,667 last week)
  • Number of Cases (USA): 8,428,640 (up from 7,997,969 last week)
  • Statistics courtesy of Johns Hopkins

Financial & Economic Updates

US Oil Market News

  • ConocoPhillips to Acquire Concho Resources in All-Stock Transaction (Link
  • Pioneer Natural Resources Announces Agreement to Acquire Parsley Energy (Link
  • Railroad Commission Eyes Changes To Flaring Rules (Link)
  • Tribes Make New Move To Shut Down Dakota Access Pipeline (Link)
  • Boulder Attempting To Create Its Own City-Owned Electric Utility By Buying The Existing Xcel System (Link)
  • New Jersey Calls For 100% Electric Vehicles By 2035, a First For The East Coast (Link)
  • Trump Blasts Biden’s Fracking Plans At Rally (Link
  • Biden’s Green Energy Plan Seeks To End Natural Gas Use Within 15 Years (Link)
  • Biden Says Renewables Need to Replace Oil Industry (Link
  • Belching Cows And Endless Feedlots: Fixing Cattle’s Climate Issues (Link) **INTERESTING READ**   

Global Market News

  • Canada Will Ban Single-Use Plastic Items By The End Of Next Year (Link)
  • With Covid-19 Under Control, China’s Economy Surges Ahead (Link)
  • China’s Crude Imports Become Backbone Of Oil Price Recovery, But How Long Will China Continue To Prop Up The Oil Market? (Link, Link)
  • OPEC Meeting Ends Without Firm Decision On Output Cuts But Russia Believes A Rollover Is Possible (Link, Link
  • Saudi Arabia Is Suffering The Consequences Of Its Failed Oil Price War (Link
  • ISIS Calls For Attacks On Saudi Oil Industry (Link
  • Equinor Awards Wood $75-Million Contract To Support UK Mariner Field Development  (Link)  
  • Why Natural Gas Is The Most Important Fuel Of the Next Decade (Link) **INTERESTING READ**
  • An Idle Venezuelan Tanker With Millions of Gallons of Oil is Creating Panic in Trinidad (Link) **NOT THE FIRST TIME WE HAVE REPORTED ON THIS** 

Employment Updates

  • ExxonMobil CEO Warns of Job Cuts Coming For Employees In U.S. And Canada (Link, Link, Link)  
  • Unemployment Claims Fell to 787,000 Last Week – a dip in jobless claims and the number of people continually receiving unemployment benefits are positive signs for the struggling labor market, though claims remain historically high (Link

US Rig Count

  • UP 5 from last week for a total of 287
  • Down 65% from one year ago
  • Statistics courtesy of Baker Hughes

RARE PETRO Updates

Content UpdatesNews PulsePodcast

  • A NEW Basin Breakdown for the Month of September is available now! Be sure to check out the articles HERE and the podcast HERE!  
  • Our sixth installment of The Industry Leader Spotlight Podcast is available now! Be sure to check out our interview with multi-disciplinary industry leader, executive, and world traveler; Neel Duncan! (Link
  • Episode 2 (Enterprise Resource Planning) from our newest segment, the Modern Mobile Oilfield is available now! This series is a collaborative effort between world renowned author Geoffrey Cann and RP host Tavis Killian that will expand on topics covered in the book “Bits, Bytes, and Barrels”. This new segment is aimed at energy professionals at any level who are looking to better understand the future of a digital oilfield, and potentially implement these technologies into their company’s workflow. Be sure to watch or listen on all available platforms HERE
  • A new episode of the Periodical Podcast is available now! Be sure to check out our discussion on the possibility of nationalizing the United States oil and gas industry and why that may or may not be such a good idea. (Link
  • This week’s Periodical reveals falling oil prices and a surge in green energy policies have breathed new life into an old idea: to nationalize the fossil fuel industry. The problem is, nationalizing oil and gas would be a radical step, and alone it would not be enough to deliver a comprehensive energy transition that can meet climate goals as well as the social objectives of the Green New Deal. While calls have been made to nationalize oil and gas development in the U.S., the inefficiency of government oversight cannot do a better job than private enterprise at developing and managing these natural resources. Be sure to check out: Nationalizing the United States Oil Industry HERE!  
  • As Always, A New Monday Madness Podcast! (Link)  
  • We are reaching deep into the content vault to bring out some interviews that occurred a couple of years ago. Welcome to the Industry Leader Legacy Series where we will kick off with Dr. Charles Kohlhaas. Dr. Kohlhaas has over 60+ of oilfield experience and skills ranging from technical to teaching. Nowadays he spends his time putting his expertise towards consulting. Even though lots has changed in the years since this was recorded, his knowledge and expertise stands. Part 1 lays the story of the Arabic Oil Embargo out on the table to be further dissected in later parts. (Link)

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