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Chevron Highlights Importance of the Permian Basin During Stockholders Meeting

Chevron, one of the largest oil companies in the world, chose to hold their annual stockholders meeting in the Permian Basin, highlighting the area’s importance to the company.
Chevron, one of the largest oil companies in the world, chose to hold their annual stockholders meeting in the Permian Basin, highlighting the area’s importance to the company.

During the meeting John Watson, the company’s chairman and chief executive officer, spoke on the earnings, performance and future growth of the company.

“We have an energy renaissance,” Watson said about the nation and about the Permian Basin.

“Technology has advanced, it’s been a rebirth,” he said.

For the past year, the company reported earnings of $21.4 billion and a return on capital employed of 13.5 percent.

And although the Permian Basin is only a small portion of their global operations, Mitch Mamoulides, Chevron’s Midland and Delaware Basin Manager, echoed the words of George Kirkland, Chevron’s vice chairman, in that the area is likely to be one of the company’s top five assets.

“We’ve stepped up our investment in the Permian and we’ll be significantly increasing investment in the years to come,” Mamoulides said.

For 2020, the company plans to increase to a net production of 25,000 barrels a day and increase the percentage of horizontal wells, Mamoulides said.

“Horizontal drilling and other technologies really have unlocked the unconventional plays here in the Permian region,” said Justin Higgs, spokesperson for Chevron. Adding that the growth helped them become the number two producer in the region.

Chevron has been in Midland for more than 90 years and is currently building a new 330,000 square foot multimillion dollar facility.

And with West Texas work shortage problems, Watson acknowledged a future need of engineers and people in the oil and gas industry.

The meeting was held at the Permian Basin Petroleum Museum, where they also discussed ten of the company’s proposals.

Among the proposals, was a rejection to split the roles of chairman and CEO, both currently held by Watson.

“A CEO, the top manager of the company reports to the board of directors. John Watson by being CEO he reports to the board of which he is the chair,” said stockholder Simon Billenness.

Others brought concerns of lobbying, disclosures, unions and charitable donations.

Protestors were also present during Wednesday’s meeting, but caused no interruptions.

“The future is really bright in the Permian Basin and the greater Midland area,” Higgs said. “We’re really looking forward to what it holds.


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