Why Chevron Chose Guyana Over the United States

[] Today's market commentary from TradingPub is here! To view this email as a web page, go [here.]( To view this email as a web page, go [here.]( [] [] [] Why Chevron Chose Guyana Over the United States Dear Fellow Trader: The energy markets cheered in October when ExxonMobil purchased Pioneer Natural Resources for a stunning $53 billion. The deal instantly gave ExxonMobil Corp. (NYSE: XOM) a massive addition to its dominant position in the Permian Basin, the Texas oil formation that comprises the bulk of U.S. oil-and-gas production. Analysts immediately questioned how Exxon’s main competitor, the globally integrated oil-and-gas giant Chevron Corp. (NYSE: CVX) would respond. Who would Chevron purchase to make a statement that it was keeping up with Exxon’s dominance? We received that “surprise” answer this week. Chevron Turns to South America In June 2022, Chevron Chairman and CEO Mike Wirth criticized the Biden administration for its hostility toward U.S. oil and gas production. No doubt, the United States government continues to burden the energy sector with needless regulation and stonewalling. In addition, the Biden administration criticized U.S. energy producers for not increasing refining capacity as the Ukraine-Russia war entered its early innings. Wirth advocated that the government do more to cooperate with the private sector to streamline operations. "We need clarity and consistency on policy matters ranging from leases and permits on federal lands, to the ability to permit and build critical infrastructure, to the proper role of regulation that considers both costs and benefits," Wirth said at the time. Fast forward 15 months, and things haven’t improved. Refining capacity is stressed and the U.S. Strategic Oil Reserve is now down to just 17 days of supply. As war rages in the Middle East, the prospect of a huge rally in oil prices exists. Yet, the Biden administration is considering new additions to the Endangered Species List that could hinder [oil and gas production in the Permian Basin](. When Exxon expanded its production footprint in Texas this month, everyone expected that Chevron would follow. And the energy giant almost went in this direction, too. Reports indicate that Chevron explored purchasing Occidental Petroleum Corp. (NYSE: OXY), a major Texas producer backed by Warren Buffett. But Chevron turned its attention elsewhere. It bought a company with ZERO exposure to the Permian Basin in Hess Corp. (NYSE: HES). The all-stock deal (at a surprisingly low premium) gives Chevron a company it didn’t need to have… but got to have for cheap. Hess’ value is largely derived from a big 30% stake in an offshore oil field in the South American nation of Guyana. This field has roughly 11 billion barrels of crude, and produces about 300,000 barrels per day. The project — also partially owned and operated by Exxon — could produce up to 800,000 barrels per day by 2027. Like the Permian Basin, this field has very low production costs. And since Chevron is already one of the largest landowners in the Permian, it turned its attention to diversification away from the U.S. to an oil field that is still close to U.S. refinery networks. This is an excellent deal for Chevron, and it puts a lot of pressure on mid-tier producers like Occidental, Devon Energy Corp. (NYSE: DVN), and ConoccoPhillips (NYSE: COP) to find cheap future production sites — or else the future of WTI crude will largely be decided by the two biggest players in the U.S. markets. State of Oil Today Oil prices pulled back again Tuesday as hedge funds continue to take profits from the 13-week rally that just hit the Energy sector since June. Profit taking is very common, and a reminder that stocks don’t go straight up. The Chevron and Exxon deals are proof that both companies believe that oil will remain the dominant form of energy in transportation and other sectors for the decades ahead. And the Energy Information Administration’s long-term oil outlooks confirm those beliefs, as oil demand will rise — not fall — into 2050. That said, today’s pullback is creating opportunities for investors to tap into sources of cheap cash flow and great long-term upside potential. With the U.S. emergency supply at multi-decade lows and refineries shutting down thanks to bad government policies, we are about to enter a dramatic supercycle that could take oil prices MUCH higher… And a large number of U.S. companies are poised for huge upside. [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] [] _________________________________________________ [] How to Find Hidden Pockets of Income on Top AI Stocks Word has gotten out about the strategy behind one unique trade move that allows us to target wins… regardless of where a stock goes! And now, [even mainstream analysts are raving about it:]( The Wall Street Journal wrote that this loophole can “Juice returns in any market.” SeekingAlpha writes: “Excellent strategy to generate steady, reliable income.” Fidelity says that this trick helps “reduce risk.” Even Investopedia declared: “Now you can get paid 52 times per year.” Interested in hearing more? Of course you are! [Get the Details Here]( [] _______________________________________________ [] Market Momentum is RED Markets remain under significant pressure this week, and we’ve moved into the Fear stage of this situation. The S&P 500 is trying to find a bottom in the near term. Short-term, six-month bonds now pay a higher return than the yield of the S&P 500 for the first time in more than 20 years. *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the TradingPub channel and you’re done: [9_jjnFuAvno0MjNh]( See you there! Garrett [] [] [] Why Chevron Chose Guyana Over the United States Dear Fellow Trader: The energy markets cheered in October when ExxonMobil purchased Pioneer Natural Resources for a stunning $53 billion. The deal instantly gave ExxonMobil Corp. (NYSE: XOM) a massive addition to its dominant position in the Permian Basin, the Texas oil formation that comprises the bulk of U.S. oil-and-gas production. Analysts immediately questioned how Exxon’s main competitor, the globally integrated oil-and-gas giant Chevron Corp. (NYSE: CVX) would respond. Who would Chevron purchase to make a statement that it was keeping up with Exxon’s dominance? We received that “surprise” answer this week. Chevron Turns to South America In June 2022, Chevron Chairman and CEO Mike Wirth criticized the Biden administration for its hostility toward U.S. oil and gas production. No doubt, the United States government continues to burden the energy sector with needless regulation and stonewalling. In addition, the Biden administration criticized U.S. energy producers for not increasing refining capacity as the Ukraine-Russia war entered its early innings. Wirth advocated that the government do more to cooperate with the private sector to streamline operations. "We need clarity and consistency on policy matters ranging from leases and permits on federal lands, to the ability to permit and build critical infrastructure, to the proper role of regulation that considers both costs and benefits," Wirth said at the time. Fast forward 15 months, and things haven’t improved. Refining capacity is stressed and the U.S. Strategic Oil Reserve is now down to just 17 days of supply. As war rages in the Middle East, the prospect of a huge rally in oil prices exists. Yet, the Biden administration is considering new additions to the Endangered Species List that could hinder [oil and gas production in the Permian Basin](. When Exxon expanded its production footprint in Texas this month, everyone expected that Chevron would follow. And the energy giant almost went in this direction, too. Reports indicate that Chevron explored purchasing Occidental Petroleum Corp. (NYSE: OXY), a major Texas producer backed by Warren Buffett. But Chevron turned its attention elsewhere. It bought a company with ZERO exposure to the Permian Basin in Hess Corp. (NYSE: HES). The all-stock deal (at a surprisingly low premium) gives Chevron a company it didn’t need to have… but got to have for cheap. Hess’ value is largely derived from a big 30% stake in an offshore oil field in the South American nation of Guyana. This field has roughly 11 billion barrels of crude, and produces about 300,000 barrels per day. The project — also partially owned and operated by Exxon — could produce up to 800,000 barrels per day by 2027. Like the Permian Basin, this field has very low production costs. And since Chevron is already one of the largest landowners in the Permian, it turned its attention to diversification away from the U.S. to an oil field that is still close to U.S. refinery networks. This is an excellent deal for Chevron, and it puts a lot of pressure on mid-tier producers like Occidental, Devon Energy Corp. (NYSE: DVN), and ConoccoPhillips (NYSE: COP) to find cheap future production sites — or else the future of WTI crude will largely be decided by the two biggest players in the U.S. markets. State of Oil Today Oil prices pulled back again Tuesday as hedge funds continue to take profits from the 13-week rally that just hit the Energy sector since June. Profit taking is very common, and a reminder that stocks don’t go straight up. The Chevron and Exxon deals are proof that both companies believe that oil will remain the dominant form of energy in transportation and other sectors for the decades ahead. And the Energy Information Administration’s long-term oil outlooks confirm those beliefs, as oil demand will rise — not fall — into 2050. That said, today’s pullback is creating opportunities for investors to tap into sources of cheap cash flow and great long-term upside potential. With the U.S. emergency supply at multi-decade lows and refineries shutting down thanks to bad government policies, we are about to enter a dramatic supercycle that could take oil prices MUCH higher… And a large number of U.S. companies are poised for huge upside. [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] [] _________________________________________________ [] How to Find Hidden Pockets of Income on Top AI Stocks Word has gotten out about the strategy behind one unique trade move that allows us to target wins… regardless of where a stock goes! And now, [even mainstream analysts are raving about it:]( The Wall Street Journal wrote that this loophole can “Juice returns in any market.” SeekingAlpha writes: “Excellent strategy to generate steady, reliable income.” Fidelity says that this trick helps “reduce risk.” Even Investopedia declared: “Now you can get paid 52 times per year.” Interested in hearing more? Of course you are! [Get the Details Here]( [] _______________________________________________ [] Market Momentum is RED Markets remain under significant pressure this week, and we’ve moved into the Fear stage of this situation. The S&P 500 is trying to find a bottom in the near term. Short-term, six-month bonds now pay a higher return than the yield of the S&P 500 for the first time in more than 20 years. *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the TradingPub channel and you’re done: [9_jjnFuAvno0MjNh]( See you there! Garrett [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States