BP’s interest in Devon Energy’s Eagle Ford business—a position spanning 90,000 net acres—reveals the internal pressure to expand production. While the company eventually walked away from the potential acquisition, the move highlights CEO Meg O’Neill’s intent to bolster the BPX Energy unit. Current targets aim to push BPX production past 650,000 barrels of oil equivalent per day by 2030, building on a second-quarter output of 545,000 barrels.
BP Shifts Strategy to Reclaim U.S. Shale Ground
With oil prices climbing above $100 a barrel, BP is reconsidering its stance on U.S. shale assets, signaling a pivot toward growth after months of shedding debt. The oil giant recently evaluated Devon Energy’s South Texas portfolio, marking a departure from its narrow focus on divestment.
The timing of these inquiries is deliberate. Despite the company’s ongoing campaign to meet a $20 billion divestment goal, the lure of established shale basins remains strong, particularly where BP already possesses operational knowledge. Devon is currently shopping its Eagle Ford and Powder River Basin assets following its $58 billion merger with Coterra, seeking to capitalize on a market where rising crude prices have inflated asset valuations. Analysts at TPH Research suggest the Eagle Ford package could fetch as much as $4.5 billion, though market estimates remain more conservative at $3.5 billion to $4 billion. As Middle East supply risks drive oil prices higher, the friction between sellers seeking premiums and buyers wary of overpaying will likely dictate the pace of BP’s return to the acquisition trail.
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