“The time is right now because for this industry, the wind is behind our backs,” Andeavor Chief Executive Greg Goff said.
The Marathon Petroleum and Andeavor deal comes off the heels of a $9.5 billion agreement between producers Conco Resources (NYSE: CXO) and RSP Permian (NYSE: RSPP) in West Texas’ Permain basin, an area that is expected to produce as much as Iran or Iraq within a few years.
The deal making reflects growing confidence in rising oil prices. U.S. crude oil prices are up about 50% in the past year, with West Texas Crude oil futures now trading around $68.5 per barrel.
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