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U.S. natural gas and oil industry turns in strong April performance

The American Petroleum Institute’s latest Monthly Statistical Report (MSR) shows U.S. crude oil production sustained a record-tying 12.1 MMbopd in April 2019 while total petroleum demand was the highest for the month since 2007 at 20.2 MMbpd. Other April highlights include:

  • U.S. petroleum demand grew 1.2% year to year (y/y) in April.
  • Record gasoline demand at 9.5 MMbpd.
  • Seasonally strong jet fuel demand at 1.7 MMbpd.
  • Strongest refinery and petrochemical “other oils” feedstock demand since 2007 at 5 MMbpd.
  • Total petroleum inventories grew to 4.5% y/y. “Energy and economic growth go hand-in-hand,” said API Chief Economist Dean Foreman.
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The Prize for Winning Energy’s Biggest Takeover Battle? An Oil Field Half the Size of California

The Chevron vs. Occidental battle to buy Anadarko Petroleum is the biggest, twistiest corporate takeover tussle the energy industry has seen in years. But it’s not just entertainment: at stake is nothing less than a battle for the heart of the U.S. shale boom.

The prize is the right to dominate the Permian Basin, a field that produced 4.1 million barrels per day of crude in April alone, according to the U.S. Energy Information Administration. That makes it the second-largest producing field in the world after Saudi Arabia’s Ghawar field—with some expecting it to become the world’s largest within years.

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Here’s how analysts think Chevron will respond to getting dumped by Anadarko

Chevron has a major decision to make after Anadarko Petroleum decided to ditch a $33 billion deal with the oil major and instead sell its business to Occidental Petroleum.

Anadarko’s board said Monday a revised $38 billion offer from Occidental was superior to its existing $33 billion agreement with Chevron. Now, Chevron has until Friday to counter Occidental’s bid for Anadarko, an international driller with enviable assets in U.S. shale fields, the Gulf of Mexico and Africa.

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