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

• Permian Shopping Spree Continues with Oxy Deal

• Trouble in EV Paradise as Ford, GM Slash Production Plans

• Upcoming Oil and Gas Events

• Tweet of the Day

Permian Shopping Spree Continues with Oxy Deal

Occidental Petroleum struck a deal to acquire CrownRock, a Permian operator, for $12 billion.

It’s the latest in a string of large-scale deals in the play.

And it probably won’t be the last.

Race to the last barrel

Earlier this year, Exxon snapped Pioneer Resources for $60 billion.

This made it the biggest operator in the Permian.

Chevron followed suit, taking over Hess Corp. for $53 billion, also boosting its Permian acreage.

Now, Oxy has had to outbid several other suitors for CrownRock.

Permian acreage is a hot commodity.

It’s the most productive shale play in the U.S.

Despite EIA estimates that output was falling for several months.

It must have been embarrassing to see the actual output numbers.

Anyway, there is no more land up for grabs in the Permian.

Consolidation has become the only option for growth-minded companies.

What’s next?

As analysts forecast, after the Exxon deal, shale will change.

It will go from a big pond with lots of small fish to a big pond with a handful of big fish.

Which means more control over production.

Which means bad news for a Democrat federal government if we get one.

This may explain why 2024 industry outlooks see a major slowdown in production growth.

This year, output grew by about 1 million bpd.

This is seen falling to just 100,000 bpd next year.

The face of U.S. shale and its dynamics is changing, for sure.

Today’s Edition Is Brought To You By ROX Exploration

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Trouble in EV Paradise as Ford, GM Slash Production Plans

EVs were supposed to kill the internal combustion engine.

They were supposed to be cheap, reliable, cool, and, of course, green.

They were supposed to sell like hotcakes.

But they aren’t. And now carmakers are slashing production plans.

From 3,200 to 1,600 F-150 Lightnings

Ford just announced this week it’s slashing 2024 plans for its F-150 Lightning.

By half.

Because the company tries to respond to consumer demand, per a spokesperson.

So… demand’s not really great, then.

GM has also noticed that and has canceled or shrunk $12 billion in EV investments.

That’s a pretty penny, but it’s understandable: GM is losing north of $60,000 on every EV it sells.

That must hurt.

But the company has grand plans.

While Ford quietly retreats, GM plans to start selling more expensive EVs.

And phase out the production of its affordable Bolts… which make up 90% of its 2023 sales.

Makes perfect sense, right?

Beginning of the end

A year ago, analysts saw the shortage of EVs as the reason for the slow pace of the “revolution.”

Now, there are too many EVs, and dealers can’t sell them.

Because people don’t want to buy them.

Not when there are not enough chargers, and many that are there break down too often.

Not when a cold snap can decimate your range and maybe even leave you stranded on the road.

And not when there are news reports about EVs catching fire out of the blue every week now.

It's time to go back to the drawing board.

Upcoming Oil & Gas Events

• December 15: 23rd Annual KOGA Christmas Party, Bodley Bullock House, Lexington, KY

• January 16: TIPRO/IPAA Leaders in Industry Luncheon, Petroleum Club of Houston, Houston, TX

• January 17: IPAA Private Capital Conference, The Post Oak at Uptown Houston, Houston, TX

• January 17-18: GO-WV Winter Meeting, Marriott Town Center Hotel, Charleston, WV

• January 18: Kansas Oil and Gas Day Legislative Reception, Kansas State Capital, Topeka, KS

• January 23-25: POWERGEN International, Ernest N. Morial Convention Center, New Orleans

Around the Global Patch

🇨🇦 Canada's strategic sale: oilfield waste facilities fetch $850MM.
🇨🇳 China's roadmap: achieving EV self-sufficiency by 2060.
🇧🇷 Petrobras initiates a search for well-intervention vessels in Brazil.

Tweet of the Day

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