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Equinor (EQNR) Gets Permit to Boost Gas Production for Europe

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Equinor ASA (EQNR - Free Report) announced that it is going to take new measures that will aid the integrated energy player in maintaining high export of gas to Europe.

With the permission to raise production from oil and gas fields located off the coast of Norway, Equinor will increase short-term production to meet high gas demand in the continent. Equinor announced that it will be capable of boosting the export of gas from the Oseberg field by roughly 1 billion cubic meters in the current gas year, thanks to the permit. This indicates an increase of 15-20% year over year to roughly 7 billion cubic meters.

From the Heidrun field, EQNR will be able to raise gas production by 0.4 billion cubic metres in the current calendar year. This suggests an increase of up to 30% from a year ago. From the Troll field, during this gas year, the permit will enable the company to raise production by 1 billion cubic meters.

The development reflects Equinor’s strong commitment to deliver gas to customers in this extremely challenging situation.

Conflict and geopolitical muscle-flexing between Russia and Ukraine is creating a pricing scenario with a very high price of commodities. High prices are favorable for energy companies engaged in exploration and production activities.

Other energy players that are benefiting from favorable commodity prices include Exxon Mobil Corporation (XOM - Free Report) , EOG Resources (EOG - Free Report) and Chevron Corporation (CVX - Free Report) .

ExxonMobil is banking on key upstream projects centered around Permian — the most prolific basin in the United States — and offshore Guyana resources.

ExxonMobil reported strong fourth-quarter results, thanks to improved realized oil and natural gas prices as well as higher refining and chemical margins. Factors that are keeping ExxonMobil ahead of many players are sheer size and project diversification.

For this year, EOG Resources has laid out a plan to generate $6.4 billion in free cash flow at a West Texas Intermediate crude price of $80 per barrel. EOG Resources has also committed $1.7 billion in regular dividend payments.

With the employment of premium drilling, EOG Resources is reducing cash operating costs per barrel of oil equivalent, thereby aiding the bottom line.

In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s assets in the most prolific basin of the United States have minimal royal payments, thereby securing handsome cash flows for the company in the long run.

Investors are pleased with Chevron’s capital spending discipline, which aids the player to generate handsome cash flows.


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