![]() ![]() Like Microsoft, Google has also recently showcased generative AI upgrades for its search engine, learning from past data how to respond to open-ended queries where no clear answers exist on the web. The updates to Bing are part of Microsoft's effort to capture more of the estimated $286 billion market for search advertising globally. "This is a profound change to how people will use the web," he said in an interview.Īsked if Microsoft could sell ad placements related to the plug-ins, Mehdi said the company hasn't gotten to that point but that "the model for how people acquire customers is changing." The company also is expanding so-called plug-ins for Bing, using a standard embraced by OpenAI and letting businesses transact more easily with consumers in its search engine.įor instance, one such tool can help a web surfer looking for dinner ideas with a suggested recipe and ingredients that could then be ordered from Instacart in a single click, said Yusuf Mehdi, Microsoft's consumer chief marketing officer. Now, ChatGPT can pull from Bing web results for paid subscribers and will do so soon for free users, the company said at its annual Microsoft Build conference. Add the US refining and marketing business to that, and roughly half of Chevron’s operating cash flow will be Made in the USA.May 23 (Reuters) - Microsoft Corp (MSFT.O) on Tuesday started making available to users a host of AI upgrades, including to ChatGPT, its search engine Bing as well as to cloud services - an expansive launch that seeks to narrow the gap with Alphabet Inc's (GOOGL.O) Google.Īmong key changes is the rollout of live search results from Bing to ChatGPT, the viral chatbot from its partner OpenAI whose answers originally were limited to information as of 2021. ![]() ![]() By next year, about 40% of the company’s operating cash flow would come from pumping oil and gas from onshore and offshore fields in America, according to Citigroup Inc. In expanding beyond the Permian into a second US shale basin, Chevron is becoming even more American, quickly reversing its internationalization following the merger with Texaco about two decades ago, when it created mighty business units in far flung locations like Australia and Kazakhstan. In both, Chevron is now one of the top producers. The oil game today is all about the Permian and the DJ basins. ![]() Another basin, the Anadarko-Woodford in Oklahoma, has probably peaked too. Of the five major American shale basins, two – where the revolution largely originated - are already past their prime: production in the Bakken, in North Dakota, and the Eagle Ford, in southern Texas, has peaked. Yet, there’s a strategic angle to it too. The purchase speaks volumes about the geographical and business shift ongoing in the US shale industry. From a business perspective, the question isn’t why Chevron is buying, but why PDC is selling. The company expects the transactions to be accretive to its shareholders immediately, adding about $1 billion to its annual free cash flow, a number that may go up as the synergies could be significantly larger than what Chevron indicated. PDC wasn’t an exception, and Chevron has bought oil and gas reserves relatively cheap, paying about $7-a-barrel for the inventory. Certainly, Chevron appears to have taken advantage of the fact that any oil company heavily exposed to Colorado tends to trade at a discount due to investor worries about environmental regulatory risk. On the surface, the deal may look more opportunistic than strategic. In its much better-known Permian location, it’s pumping about 800,000 barrels a day. If the deal closes by year end, as expected, Chevron would pump about 360,000 barrels of oil equivalent a day there, quickly approaching 400,000 barrels a day by 2024. Dig deeper, however, and the scale of the new business is evident. Almost out of the blue, the DJ basin will become one of Chevron’s top-five assets in terms of production and free cash flow. The location may surprise, because Colorado tends to fall under the radar of Wall Street, and the state is seen as more risky from a regulatory point of view than Texas or even New Mexico. In Chevron-speak, the DJ basin ads “another piston” to its already strong shale engine. Together, the two relatively small all-stock deals will transform Chevron into the largest oil and gas producer in the so-called Denver-Julesburg shale basin, which spreads across Colorado, Nebraska and Wyoming. second, on Monday, it announced a $6.3 billion deal to buy PDC Energy Inc. has expanded its position in the US shale industry beyond the giant Permian basin- probably at a lower cost than it would have paid for Anadarko.įirst, it was the $5 billion deal in 2020 to acquire Noble Energy Inc. Even after being outbid for Anadarko Petroleum Corp. ![]()
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