Chevron's Acquisition of Hess to Boost Oil Production in Bakken Shale Play

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Energy Nouvelles

Chevron,Hess,Bakken Shale Play

Analysts predict that Chevron's acquisition of Hess will lead to an increase in oil production in the Bakken shale play, although it may not reach pre-2020 levels. The deal will provide Chevron with 465,000 net acres of high-quality inventory in the Bakken, supported by Hess Midstream's integrated assets. Chevron is expected to follow Hess's plans to raise net oil-equivalent production to 200,000 boepd by 2025.

Oil production in the Bakken shale play is set to increase after Chevron’s acquisition of Hess, although volumes are unlikely to hit the records seen before 2020, analysts have told Reuters. Last week, Chevron said it would buy Hess Corporation in an all-stock transaction valued at $53 billion with a total enterprise value, including debt, at $60 billion.

Those plans entailed lifting the net oil-equivalent production to 200,000 boepd in 2025. North Dakota, the home state of the Bakken, was the second-largest oil-producing state in the United States between 2012 and 2020, right after Texas, before being surpassed by New Mexico thanks to the part of the Permian it hosts. Crude oil production in North Dakota has been rising this year, per EIA data, but it is still below the records from the end of 2019.

 

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