Tellurian chairman: The Permian Basin is the ‘swing producer in the world

While it’s tough to bet which direction oil prices may swing, TellurianChairman Charif Souki said Thursday that the Permian Basin in Texas and New Mexico is the key influence on the market.

“What I’m thinking now is that the Permian Basin has become the swing producer in the world and, therefore, what happens in America matters more than what happens at OPEC,” he said in a sit down interview with CNBC’s Jim Cramer on “Mad Money.”

OPEC on Thursday, Reuters reported, predicted that demand for crude would fall in 2020, which caused oil prices to cool. Brent crude, a benchmark price for oil, futures fell 39 cents to $66.61 a barrel and U.S. West Texas Intermediate crude futures slipped 23 cents to $60.20 a barrel.

Cheap gas prices, Souki said, would boost demand for oil and Tellurian, which deals in natural gas transportation infrastructure, isn’t worried about increasing competition. Citing Pioneer Natural Resources CEO Scott Sheffield’s recent appearance on “Mad Money,” Souki recalled that oil production in the Permian was increasing from 4 million barrels a day to 8 million barrels a day.

He said he isn’t worried about losing customers in Europe.

“I’m concerned about stopping flaring in the Permian Basin, get the gas on the water and put it on ships — and you can be on the water for less than $2 — and so there is no competition for us out there,” Souki said. “We just have to build the infrastructure.”

In building that infrastructure, Souki pointed out that Tellurian landed a $500 million investment from French oil and gas company Total. The funds will go towards Tellurian’s $28 billion Driftwood Project, which includes development of a new liquefied natural gas export terminal in Louisiana and a pipeline network.

Shares of Tellurian closed Thursday’s session up more than 4%.

Recent Posts

See All

NAVIGATION

CONTACT US

(469) 518-0099   admin@sofiexploration.com

6136 Frisco Square, Suite 370,  Frisco, Texas 75034

Our Sofi Exploration Team thanks you for the time and effort in evaluating our partnerships. For any further information, please feel free to call Jennifer Medina at (469) 518-0099
Sofi Exploration | This content is provided for informational purposes only. Information on this website is not intended to be a solicitation of any kind. Nothing herein shall be construed as tax, legal or accounting advice. Investing in oil and gas is highly speculative and could result in substantial losses. Potential investors should consult their attorney, accountant and financial advisers before investing in oil and gas. Past performance is not a guarantee of future performance or returns.
Copyright © Sofi. All rights reserved.
  • Insta-web-ready
  • facebook icon-01
  • Manta-01
  • linked in-01