Reports related to this article:
Project(s): View 3 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
Released January 30, 2025 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Lifted by an increase in production from the Bakken Shale formation, Hess Corporation (NYSE:HES) (New York, New York) said its output during the fourth quarter increased 18%, but it was emerging oil giant Guyana that contributed most to the net gains.
Hess reported net oil and gas production during the fourth quarter of 495,000 barrels of oil equivalent per day (BOE/d), an 18% year-on-year increase.
In early January, the U.S. Federal Trade Commission signed off on the proposed $53 billion offer from Chevron Corporation (NYSE:CVX) (San Ramon, California) to buy out Hess, resolving some lingering anti-trust issues over the merger. On its own, Hess reported net income during the fourth quarter of $542 billion, a 31% improvement over the same period in 2023.
The net production increase was lifted in part by gains in North America. From the Bakken Shale in North Dakota, Hess recorded production of 208,000 BOE/d, a 14,000 BOE/d improvement over fourth-quarter 2023 levels.
Hess attributed the increase to higher drilling and completion activity. Five of the 35 rigs listed in North Dakota are operated by Hess, state data show. An active wildfire season on the northern plains curtailed more than a half million barrels of crude oil production in October, though the federal government expects total Bakken production to remain steady at about 1.2 million barrels per day.
Hess said it plans for four rigs in the Bakken this year, with a production range of between 195,000 and 200,000 BOE/d during the first quarter. The company said it expected production to be lower than fourth-quarter levels due to the presumable impact of winter weather.
By percentage, meanwhile, it was Guyana that did the heavy lifting for Hess during the fourth quarter. Hess reported that net production of 195,000 BOE/d marked a 52% increase from fourth-quarter 2023.
Hess is working alongside Exxon Mobil Corporation (NYSE:XOM) (Spring, Texas) in the Stabroek block offshore Guyana. ExxonMobil in late 2024 committed $2.5 billion toward the purchase of two floating production storage and offloading (FPSO) vessels for Guyana's offshore operations.
ExxonMobil's sixth Stabroek field, the Whiptail development, is expected to add 250,000 barrels per day of capacity by the end of 2027. Like the Bakken, however, Hess said it expects production to be suppressed as well, in the range of 180,000-185,000 BOE/d, which it said reflected planned maintenance at the Payara development inside Stabroek.
Overall, the production outlook was mixed for Hess, with gains year-on-year to the fourth quarter followed by expectations of lower output in early 2025. It realized a selling price of $72.10 per barrel during the fourth quarter, compared with $76.63 per barrel during the prior-year quarter.
The U.S. federal government estimated that Brent crude oil averaged $81 per barrel last year, and should fall to $74 per barrel this year. West Texas Intermediate, the U.S. benchmark for the price of oil, averaged $76.60 last year and should drop to $70.31 per barrel for 2025.
There was no statement in the fourth quarter report from Chief Executive John Hess, who is barred from joining the board of the company that emerges after the Chevron acquisition closes.
ExxonMobil, the partner in Guyana, is challenging the merger. A three-judge panel will consider the case in May.
Industrial Info is tracking eight active projects attributable to Hess, worth $127.75 million. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for the project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Hess reported net oil and gas production during the fourth quarter of 495,000 barrels of oil equivalent per day (BOE/d), an 18% year-on-year increase.
In early January, the U.S. Federal Trade Commission signed off on the proposed $53 billion offer from Chevron Corporation (NYSE:CVX) (San Ramon, California) to buy out Hess, resolving some lingering anti-trust issues over the merger. On its own, Hess reported net income during the fourth quarter of $542 billion, a 31% improvement over the same period in 2023.
The net production increase was lifted in part by gains in North America. From the Bakken Shale in North Dakota, Hess recorded production of 208,000 BOE/d, a 14,000 BOE/d improvement over fourth-quarter 2023 levels.
Hess attributed the increase to higher drilling and completion activity. Five of the 35 rigs listed in North Dakota are operated by Hess, state data show. An active wildfire season on the northern plains curtailed more than a half million barrels of crude oil production in October, though the federal government expects total Bakken production to remain steady at about 1.2 million barrels per day.
Hess said it plans for four rigs in the Bakken this year, with a production range of between 195,000 and 200,000 BOE/d during the first quarter. The company said it expected production to be lower than fourth-quarter levels due to the presumable impact of winter weather.
By percentage, meanwhile, it was Guyana that did the heavy lifting for Hess during the fourth quarter. Hess reported that net production of 195,000 BOE/d marked a 52% increase from fourth-quarter 2023.
Hess is working alongside Exxon Mobil Corporation (NYSE:XOM) (Spring, Texas) in the Stabroek block offshore Guyana. ExxonMobil in late 2024 committed $2.5 billion toward the purchase of two floating production storage and offloading (FPSO) vessels for Guyana's offshore operations.
ExxonMobil's sixth Stabroek field, the Whiptail development, is expected to add 250,000 barrels per day of capacity by the end of 2027. Like the Bakken, however, Hess said it expects production to be suppressed as well, in the range of 180,000-185,000 BOE/d, which it said reflected planned maintenance at the Payara development inside Stabroek.
Overall, the production outlook was mixed for Hess, with gains year-on-year to the fourth quarter followed by expectations of lower output in early 2025. It realized a selling price of $72.10 per barrel during the fourth quarter, compared with $76.63 per barrel during the prior-year quarter.
The U.S. federal government estimated that Brent crude oil averaged $81 per barrel last year, and should fall to $74 per barrel this year. West Texas Intermediate, the U.S. benchmark for the price of oil, averaged $76.60 last year and should drop to $70.31 per barrel for 2025.
There was no statement in the fourth quarter report from Chief Executive John Hess, who is barred from joining the board of the company that emerges after the Chevron acquisition closes.
ExxonMobil, the partner in Guyana, is challenging the merger. A three-judge panel will consider the case in May.
Industrial Info is tracking eight active projects attributable to Hess, worth $127.75 million. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for the project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
