US Chevron to focus more on liquids rich shale – executive

HOUSTON (ICIS)--US refiner Chevron is on track to develop domestic liquids-rich plays, but the company may pursue more dry-gas drilling in the future, a company executive said on Friday.

Chevron is keeping its shale portfolio on dry gas drilling to a minimum, with the exception of some dry-gas drilling in the Marcellus, because of low natural gas prices. Instead, the company is turning its focus to the liquids-rich crude oil extraction, said Pat Yarrington, Chevron’s vice president and chief financial officer.

“We are definitely focused on liquids rich plays,” she saidduring the company's quarterly earnings conference call.  

Yarrington said Chevron has not had any material domestic acreage additions in first quarter, but added that dry-gas drilling may be something the company will return to in the future.

“I don’t think we want to ever take anything off table,” she said. “We may see value down the line, but it has to be able to compete in our already strong portfolio.”

Chevron has more than 700,000 acres in the Marcellus shale play and 600,000 acres in the Utica play, the company said in an analyst meeting in March.

Chevron began evaluating its Utica developments this year and Yarrington said it is currently in the site preparation phase with drilling to begin later in the year. She said she expects a clearer drilling update to come in the second and third quarters.

“In the Marcellus, all activities are going to plan and we will continue to ramp up production as the year progresses,” said Yarrington.