FANG - Chevron Continues As High-Profile Permian Player
The Permian Basin is one of Chevron's (CVX) primary growth areas, and the company has nearly doubled its resource base there in the last two years, to 16.2 billion barrels of oil equivalent ((BOE)). It successfully increased Permian oil production 34% in 2018 over 2017. Oil represents 52% of its Permian mix, natural gas liquids 21%, and natural gas 27%. The Permian makes up about 10% of Chevron's worldwide production profile.
Chevron has economies of scale that are well-suited to shale's current manufacturing model of operations; it has a low royalty rate relative