Energy Business Review: Chesapeake SLIDES, Exxon LOVES Texas
Exxon’s (NYSE:XOM) plans to build a multi-billion dollar chemical plant in Texas may help it compete against its rival Dow Chemical (NYSE:DOW). The installation will take advantage of relatively inexpensive North American shale gas, says an environmental filing seen by Reuters, and could be online by 2016, the advent of which would greatly expand Exxon’s chemical production capacity, compared to that of Dow.
Shares of Chesapeake (NYSE:CHK) slid all day Friday (along with the price of Crude), despite the firm’s “significant” new discovery in the Hogshooter play in the Anadarko Basin of the Texas Panhandle and western Oklahoma. CHK owns approximately 30,000 net acres in the play, which exceed the 90 percent held by production from its legacy deeper Granite Wash production, and it intends to drill around 65 wells in Anadarko, the drilling being already figured into its capital spending plans.
BP’s (NYSE:BP) shares moves up a bit then fall back, on news (Reuters) that a Russian state company makes an offer for the former’s 50 percent portion of the TNK-BP joint venture, in a gambit that would reinforce that government’s hold on the oil sector. Some analysts say that Rosneft or its holding company is behind the bid, but the state oil (near) monopoly says that it “never thought about it”. A Bernstein observer might have it right, remarking that a 2 million barrels per day enterprise “is just too strategic for Russia to let it fall into foreign hands”.
Dynegy’s (NYSE:DYN) power producers Dynegy Holdings business lands a U.S. bankruptcy judge’s okay of a resolution with its creditors, which gets the company closer to emergence from Chapter 11 protection. Dynergy says that those creditors who joined the settlement still hold more than $2.7 billion worth of claims against its subsidiary.
Don’t Miss: BP Stops This LUCRATIVE Joint Venture.
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