Good morning, here's what the Oilman has for you today:

• Race of the Giants: Chevron Buys Hess for $53 Billion

• Europe Rushes To Secure Long-Term LNG Supply

• Upcoming Oil and Gas Events

• Tweet of the Day

Race of the Giants: Chevron Buys Hess for $53 Billion

Days after Exxon struck a deal to acquire Pioneer Natural Resources, Chevron followed.

The supermajor this week announced a plan to take over Hess Corp. for $53 billion.

Great for energy security

"This is great for energy security: It brings together two great American companies," said Chevron CEO Mike Wirth.

It’s also great for Chevron as it will give it access to one of the hottest oil spots in the world: Guyana.

Hess is a partner of Exxon in the massive Stabroek block, where a dozen discoveries have tapped into some 11 billion barrels of oil in reserves.

Now Chevron will be that partner.

Those record profits from 2022 are really being put to good use.

And they might prompt more billion-dollar acquisitions.

Big Oil Battle on the horizon

The U.S. supermajors are expanding, and they are expanding in their core business area.

European Big Oil has had different plans so far.

Yet it might feel urged to catch up or risk falling behind.

This means more acquisitions may be on the way, starring BP and Shell, for example.

They have the means – those record 202 profits.

They have the motive – to grow or watch your stock price drop.

And they have the opportunity – the oil world seems ripe for a consolidation.

All this while the IEA is trying to convince us all demand for oil is about to peak in six years.

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Europe Rushes To Secure Long-Term LNG Supply

Remember how the EU was swearing it would ditch gas and replace it with renewables?

Yeah, that’s not happening in the next 50+ years.

Three European energy majors just signed long-term LNG supply deals with Qatar.

Do what I say, not what I do

This seems to be the EU’s approach to everything these days.

Last year, it bragged how it has stopped importing Russian gas…

Only Russian LNG imports soared.

Then it bragged how wind and solar will eliminate the need for any gas.

Right.

That must be why TotalEnergies, Shell, and Eni all made 27-year deals with QatarEnergy.

This means gas will be flowing into Europe—gasp—beyond 2050.

Because the deals start in 2026 when Qatar finishes with its North Field expansion.

Tighter LNG market in the making

Normally, Asia’s been Qatar’s biggest LNG client.

It was also the U.S.’s largest LNG client.

Europe messed this all up last year when it suddenly decided to join the club.

And now it’s prompting a massive LNG expansion capacity in the U.S.

Qatar’s plans for the North Field came a few years ago.

But this new capacity will take years to complete.

So, it’s a first-come, first-served situation for importers.

And the spot market is not really an option.

Just ask the German gas regulator, which bought so much LNG last year at record prices.

And then couldn’t sell it because prices fell. It lost billions.

More long-term LNG deals will be coming soon, no doubt.

Upcoming Oil & Gas Events

• November 1: Oil and Gas Electrification Symposium, Longmont, CO

• November 2: LOGA State Industry Series, Benedict’s Plantation, Mandeville, LA

• November 6: Louisiana Energy Golf Open, Oakbourne Country Club, Lafayette, LA

• November 6-8: IPAA Annual Meeting, JW Marriott San Antonio Hill Country Resort and Spa, San Antonio, TX

• November 7: LOGA State of the Industry Series, Petroleum Club of Houston, Houston, TX

Around the Global Patch

🇰🇷 South Korean Titan to construct CCS project platform.
🇨🇳 CNOOC sets record capex spree.
🇰🇿 Kazakhstan's gas pipeline to Legacy oil province.

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