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Occidental Petroleum Corp

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Bro lists the top oil companies and doesn't have OXY or XOM ![img](emote|t5_2th52|31226)
I’m not sure what you mean by ‘rolling over’ here, but nowadays, the Permian is expected to grow crude production at a more modest pace than over the past few years. Much of the most productive acreage and reservoir targets have been drilled out. The basin consolidated heavily from 2022, which will concentrate activity to a small handful of players - Exxon, Chevron, Oxy, Diamondback, Devon, Apache, and a few fringe guys on the edges. They all now have 20-30 years of inventory to drill out, assuming they develop at that more modest pace. The frac spread is only indirectly affected by that production growth, though. Permian E&P’s are more interested in the crude oil that comes out of the ground, so they aren’t too concerned about Gas & NGL supply/demand dynamics as they are with Crude dynamics. 60-70% of the molecules that an average well produces is crude oil. The remainder is natural gas (15-20%) and NGL’s (15-20%). The frac spread is a relationship of Natural Gas pricing compared to NGL pricing. A ‘positive’ frac spread means that the NGL components (Ethane, Propane, Butane, Isobutane, Pentanes) are each worth more as liquid products than as Natural Gas (actual methane gas). When E&P firms sell their Gas and NGL’s, they usually sell the Natural Gas to large counterparties and the NGL’s to the company processing the NGL’s into Y-Grade (basically separating gas and liquids for further fractionation later). The processor in this scenario is Plains All-American. They handle the two most valuable commodity sets - Crude Oil, and NGL’s. Right now, Natural Gas supply is way higher than demand, so prices are very low. In the Permian, they’ve even been *negative*; the stuff is so oversupplied that there isn’t enough pipeline capacity to even transport it out of the Basin. So E&P firms have to *pay* companies like Energy Transfer and Enterprise to transport it. NGL’s, meanwhile, do have a bit better commercial demand, ergo, their prices are higher relative to a gas equivalent price. And this benefits PAA. They can buy NGL products (mainly Ethane, the ‘gassiest’ of the NGL components) at cheaper nat gas prices, and then sell the liquified Ethane as an NGL product. This is called frac spread arbitrage, and it hugely benefits PAA. The wider the spread, the greater profit margin they enjoy. The narrower the spread, the tighter the margin they enjoy. The frac spread’s future ‘fattiness’ or ‘leanness’ really depends on whether Natural Gas pipeline capacity can keep up with production growth (tough ask), and how soon we can start exporting the stuff to Europe at the big Gulf Coast LNG terminals. The latter is the biggest issue. We don’t have enough export capacity to handle all the gas coming out of the Permian, so prices will stay low for a while. Meanwhile, petrochemical demand for NGL’s is firmer, so those products will stay more valuable. All that to say that PAA’s frac spread benefits will stay in place for a good while. Definitely wide enough for Op to stand a good chance to see their LEAPs print.
I get hooked on oxy from time to time
RDDT TO THE MOON nah idk i got money in nvda, mpc, vti,oxy,djt and shib Got some money in rddt, hoping it goes back up
Oxy being stinky
OXY calls
ORCL DIS NFLX OXY NVDA CEG
I don't Oxy-condone it But I'm off the Oxies at the moment Uh 
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