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Crown Rock has gas assets in the Permian and Midland basins in the US. Consolidation movement in the unconventional oil and gas market.
Occidental Petroleum announced, this Monday (11/12), the acquisition of Crown Rock for US$12 billion, further consolidating its presence in the US oil market. With this acquisition, the company will reinforce its unconventional gas portfolio in the Permian basins, the largest in the country, Chevron, and from Midland.
Occidental's purchase of Crown Rock will add 170 barrels of oil equivalent per day (boe/d) to the company's production in 2024, in addition to adding 1,7 undeveloped exploration areas. This acquisition represents a significant step in Occidental's expansion and growth in the US oil market.
Acquisition of oil companies boosts US oil market
The acquisition is another in a series of consolidations in the North American oil market. This year alone, two of the biggest mergers of the century: Chevron/Hess e ExxonMobil/Pioneer. These moves point to a consolidation strategy in the US unconventional oil and gas market.
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SUSTAINABLE PRODUCTS
Experts point out that the movements reinforce the bets of some of the largest oil companies in the world on resuming the expansion of their oil and gas portfolio. The scenario indicates the expectation of continued demand for fossil fuels, even in the midst of the energy transition. Occidental Petroleum's $12 billion acquisition of Crown Rock is an example of this strategic move in the US oil and gas market.
As Mergers and acquisitions mark a new stage in the North American unconventional gas market, which experienced rapid growth in the early 2010s, with technological advances and high investments. Occidental's purchase of Crown Rock is yet another example of this consolidation movement.
The US oil market is in a period of strategic adjustment, with companies seeking to create value and increase free cash flow. Furthermore, the resumption of expansion of the oil and gas portfolio signals a period of opportunity in the sector, especially in the Permian and Midland basins, as well as in undeveloped exploration areas.
Mergers and acquisitions in the US oil and gas market
Occidental Petroleum's acquisition of Crown Rock is part of a consolidation movement that is transforming the U.S. oil and gas market. These mergers are boosting the production of barrels of oil equivalent and redefining the growth strategies of companies in the sector. The purchase of the shale gas company for US$12 billion is an example of the vigor of this market.
The US oil market is going through a phase of mergers and acquisitions that aim to strengthen companies and create synergies for the expansion of operations. The acquisition of Crown Rock by Occidental is an important step in this movement towards consolidating and strengthening oil companies operating in the country.
With the growing demand for fossil fuels and the need to secure supplies of unconventional gas, companies are moving to ensure their presence and participation in this expanding market. Occidental's purchase of Crown Rock is yet another sign of this strategic movement in the US oil and gas market.
Mergers and acquisitions in the US oil and gas market are redefining the industry landscape, boosting production and creating growth opportunities for the companies involved. The acquisition of Crown Rock by Occidental Petroleum is a clear example of this movement towards consolidation and strengthening of the unconventional gas market in the USA.
Consolidation in the oil market: acquisitions boost the sector
Source: EPBR
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