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Chevron (CVX) Halts Tamar Gas Production After Hamas Attack
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Chevron Corporation (CVX - Free Report) announced on Monday that it has been directed by the Israeli government to shut natural gas production at the Tamar platform located in the Mediterranean Sea, in the wake of the recent attack on Israel by Hamas.
The Tamar field, a critical component of Israel's energy infrastructure, located approximately 50 miles west of Haifa, typically produces 7.1-8.5 million cubic meters of natural gas per day. The platform's temporary shutdown raises questions about the potential energy supply disruptions in the region.
Over the past two decades, gas discoveries in the country have been instrumental in transforming its economy. The Tamar field, in particular, has played a key role in contributing to Israel's energy production.
The shutdown of the Tamar field has immediate repercussions for both the country and its regional partners. Israel's plans to emerge as a major gas supplier to Egypt, now face uncertainty. A major portion of the gas supplied to Egypt subsequently reaches European markets, which are heavily dependent on non-Russian alternatives. Consequently, the short-term consequences of this stoppage could include reduced onward shipments or even potential delays. This disruption has caused a surge in gas prices in Europe.
Chevron, the operator of the Tamar field, has been actively exploring avenues to expand gas production in Israel. The company has been evaluating options to supply gas to neighboring markets and potentially convert it into liquefied natural gas (LNG) for Europe. This includes the possibility of establishing a floating LNG plant. However, the current situation highlights the need for a robust security framework to safeguard operations in the region.
The sudden escalation of hostilities between Hamas and the Israeli military raises questions about the future security of the region. As geopolitical tensions persist, investors and industry stakeholders are closely monitoring developments, recognizing the importance of geopolitical stability in maintaining energy production and supply.
Chevron has made it clear that the safety of its personnel, the communities in which it operates, the environment and its facilities remains its top priority. While the Tamar field has been temporarily shut down, CVX continues to supply customers in Israel and the wider region from another major project known as Leviathan.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays. MTDR has witnessed an upward earnings estimate revision for 2023 and 2024 over the past seven days.
Pioneer Natural Resources is a leading upstream energy firm with primary operations in the Permian basin, which is among the lucrative oil shale plays in the United States with fewer risks. Pioneer's total holding of more than 1 million net acres in the Permian basin will support long-term oil production growth. PXD has witnessed an upward earnings estimate revision for 2023 and 2024 in the past seven days.
Diamondback Energy is an independent oil and gas exploration & production company with its primary focus on the Permian Basin, where it has around 491,000 net acres. With an attractive production profile, favorable industry trends and FANG’s low breakeven economics, the margin of safety on investment is likely very high. The company has witnessed an upward earnings estimate revision for 2024 in the past seven days.
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Chevron (CVX) Halts Tamar Gas Production After Hamas Attack
Chevron Corporation (CVX - Free Report) announced on Monday that it has been directed by the Israeli government to shut natural gas production at the Tamar platform located in the Mediterranean Sea, in the wake of the recent attack on Israel by Hamas.
The Tamar field, a critical component of Israel's energy infrastructure, located approximately 50 miles west of Haifa, typically produces 7.1-8.5 million cubic meters of natural gas per day. The platform's temporary shutdown raises questions about the potential energy supply disruptions in the region.
Over the past two decades, gas discoveries in the country have been instrumental in transforming its economy. The Tamar field, in particular, has played a key role in contributing to Israel's energy production.
The shutdown of the Tamar field has immediate repercussions for both the country and its regional partners. Israel's plans to emerge as a major gas supplier to Egypt, now face uncertainty. A major portion of the gas supplied to Egypt subsequently reaches European markets, which are heavily dependent on non-Russian alternatives. Consequently, the short-term consequences of this stoppage could include reduced onward shipments or even potential delays. This disruption has caused a surge in gas prices in Europe.
Chevron, the operator of the Tamar field, has been actively exploring avenues to expand gas production in Israel. The company has been evaluating options to supply gas to neighboring markets and potentially convert it into liquefied natural gas (LNG) for Europe. This includes the possibility of establishing a floating LNG plant. However, the current situation highlights the need for a robust security framework to safeguard operations in the region.
The sudden escalation of hostilities between Hamas and the Israeli military raises questions about the future security of the region. As geopolitical tensions persist, investors and industry stakeholders are closely monitoring developments, recognizing the importance of geopolitical stability in maintaining energy production and supply.
Chevron has made it clear that the safety of its personnel, the communities in which it operates, the environment and its facilities remains its top priority. While the Tamar field has been temporarily shut down, CVX continues to supply customers in Israel and the wider region from another major project known as Leviathan.
Zacks Rank & Other Key Picks
Chevron currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the energy sector are Matador Resources Company (MTDR - Free Report) and Pioneer Natural Resources Company , each currently sporting a Zacks Rank #1 (Strong Buy), and Diamondback Energy Inc. (FANG - Free Report) , carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays. MTDR has witnessed an upward earnings estimate revision for 2023 and 2024 over the past seven days.
Pioneer Natural Resources is a leading upstream energy firm with primary operations in the Permian basin, which is among the lucrative oil shale plays in the United States with fewer risks. Pioneer's total holding of more than 1 million net acres in the Permian basin will support long-term oil production growth. PXD has witnessed an upward earnings estimate revision for 2023 and 2024 in the past seven days.
Diamondback Energy is an independent oil and gas exploration & production company with its primary focus on the Permian Basin, where it has around 491,000 net acres. With an attractive production profile, favorable industry trends and FANG’s low breakeven economics, the margin of safety on investment is likely very high. The company has witnessed an upward earnings estimate revision for 2024 in the past seven days.