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Exxon Mobil joins Permian land rush

Exxon Mobil announced Tuesday it will sell $5.6 billion in stock to acquire companies that control prime areas of oil and gas real estate in the Permian Basin. The company estimates that 60 billion barrels of oil reside under the land included in the oil and gas interests soon acquired from Fort Worth’s Bass family. About 3.4 billion barrels is currently recoverable, according to Forbes reporter Christopher Helman, but he also reminds us that better technology and higher oil prices may make the region even more valuable. It’s possible the rest of the oil reserves, down the road, may become recoverable.

CNBC reports the Exxon Mobil deal is the largest oil and gas acquisition in the United States since the 2014 price crash. The deal also exceeds the last record-setting purchase of Memorial Resources by Ranges Resources for $.4 billion in May.

The Permian Basin has been the hottest area for oil and gas exploration, with the greatest number of rigs currently exploring for oil and gas by far. Last week, Baker Hughes reported that out of the 659 rigs in the United States, 268 of them were exploring for oil and gas in the Permian. The next highest number of rigs in any one basin is in the Eagle Ford region in South Texas with 47 rigs, and the Cana Woodford in Oklahoma numbering 37.

 

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