Shale Oil in the Permian Basin, United States
The Permian Basin is a light tight oil (LTO) play in west Texas, which is North America’s premier shale play.
Dear Permian community,
Late this afternoon, I informed our employees at our Permian operations that Shell has announced the sale of its Permian business to ConocoPhillips, a reputable shales operator in the basin, pending regulatory approvals. I wanted you to hear the news directly from me.
We are proud of the strong relationships Shell has built in the Permian and how you welcomed us into your communities. Over our nearly nine years in the area, our hope is that our investments and presence have enhanced the region. Our efforts with the Permian Strategic Partnership which, together with other leading energy companies, worked with local communities to address current and future challenges to responsible development of the vast oil and natural gas resources in the Permian Basin. We also worked to show care for the environment by reducing our greenhouse gas and methane intensity by around 80% and reduced flaring by more than 80% since 2017.
But when it comes to our legacy in the Permian Basin, I am particularly proud of how we worked together to increase safety. We were honored to work with multiple companies, pulling together resources, to supply local first responders with critical lifesaving equipment which will be used for years to come. I am also pleased that we worked together to proactively address the road safety needs as one of the founding members of the Permian Road Safety Coalition, which successfully advocated to secure $1.8 billion in funding from the Texas Department of Transportation. This effort helped make the roadways in the 22-county area safer by reducing accident / fatalities in the Permian Basin by nearly 35%.
We consider ourselves fortunate to have shared in the legacy of the Permian Basin and believe our work together is leaving it a safer place to live and do business. This was possible because we worked together and, I want you to know, we are grateful for the community support along with the support from local governments and the state of Texas.
ConocoPhillips is a reputable operator with existing operations and relationships in the community for many years. They have a long track record of investing in the region’s communities through charitable giving, employee volunteerism and sponsorships. We are pleased the majority of Shell’s Midland-based Permian employees will be offered employment by ConocoPhillips with effect upon closing in accordance with the terms and conditions of the transaction.
While the necessary regulatory signoffs must occur before the transaction becomes official, our focus is to ensure operations in the Permian Basin continue with an unmatched emphasis on safety, environmental performance, and our strong legacy of care and respect for employees and our communities. As always, if you have questions or comments about our operations, we hope you will reach out directly to us via email at firstname.lastname@example.org.
We’re proud of the achievements made in the Permian Basin, together with our partners, employees, contractors and the community. Thank you for the support over the years and I wish you all continued success.
Senior VP Shales US