The two giant oil companies, Exxon Mobil and Chevron, issued a statement on Friday, revealing their profits and their plans to increase production from the Permiana region, which is considered one of the prominent oil regions in America. The two companies have announced their intention to spend amounts exceeding $100 billion for new acquisitions at the present time.

Exxon explained that its production from the Guyana oil project increased by 70% in the first quarter of 2024. This is a tremendous development that contributes to meeting a large part of the growing global demand for oil.
Guyana has enormous production potential in the Permian Basin, and has faced multiple challenges in its quest to explore oil resources at low cost. Currently, Exxon and Chevron are competing to strengthen their position in this region. Each of them outperforms its European counterpart.

Exxon is expected to become the largest oil producer in the Permian once its deal to acquire Pioneer Natural Resources is completed, while Chevron is preparing to buy a $52 billion stake in Hess, which operates in the wealthy Stabroek region in Guyana. .

Analyst Neil Dingman of Truist Securities confirmed that the Permian and Guyana Basins are considered major growth engines for the two companies, especially in light of concerns related to the decline in US stocks in particular, due to weak investment in companies over several years.

Oil supplies declined and declined after reducing investments in the oil and gas industry; Some fossil fuel companies have focused on increasing revenues and reducing emissions. Earlier this month, Brent crude traded above $90 per barrel for the first time this year, as a result of continuing tensions in the Middle East. Which led to higher prices.

Despite efforts to transition to alternative energy sources, demand for oil is expected to increase by 1.3 million barrels per day during 2024. This puts companies in a position that requires caution in spending, as investors place the utmost importance on capital and balance sheet control.

Globally, the Organization of the Petroleum Exporting Countries (OPEC) still reserves five million barrels per day; Which means it may return to the market at a later time.

Regarding acquisition deals, Exxon and Chevron are awaiting the closing of their acquisitions of Pioneer and Hess, respectively, while awaiting Federal Trade Commission approval of the deals. These deals are expected to impact the overall growth path of the two companies. Which makes focusing on its implementation necessary during the coming period.

Looking at the country of Namibia, this country is also seeking to benefit from its growing oil potential, as it is witnessing a noticeable economic transformation thanks to new discoveries in the oil sector, and with a large oil reserve off its coast, Total Energy shows a willingness to move forward in developing its operations. in the country, despite the expected challenges.