Posted on 09/16/2016 12:36:35 PM PDT by 2ndDivisionVet
Apaches recent oil find highlights what could be a new phase in fracking. To date, fracking in the U.S. had really been all about taking explored basins and drilling new wells to get at previously untapped resources. That strategy worked well when oil prices were more than $80 a barrel. At todays prices though, drilling the old style rigs in mostly depleted fields to get at residual layers of black gold is a money losing strategy. Apaches find shows that money can be made by taking risks and looking for major new finds in areas that had been passed over previously.
Apache Corporation has struck oil in a region that no one would have expected. The believed to be clay-ridden region of the Permian Basin surprisingly contains at least $8 billion in oil, and there could be more. For years geologists have explored and drilled down to find limited resources and an abundance of clay.
Apache Corps leading competitors are Chevron and Occidental Petroleum, both of which maintain a significant presence in the Permian Basin as well. Occidental opened at $78 but closed $.87 lower on Tuesday. Their shares have since retreated to $75.85 and were downgraded to a hold. This past May, rumors were circulating that Occidental was in talks to take over Apache. The acquisition would have been worth $25 billion, if it were true. Occidental quickly put the rumor to bed and Apaches stock withdrew from its 11 percent spike. Apaches news last Tuesday threw Occidentals hopes of a takeover out the window. Alpine High could be Apaches ticket to a more competitive market share in the basin....
(Excerpt) Read more at oilprice.com ...
Apache has played this perfectly. The rumors of this find have been flying all Summer. They kept it under wraps and close in.
Hat tip to Apache, well played.
Great news. Good for Apache.
That oil will run out as will the gas so we outta use solar power and windmills and pay much higher taxes and energy bills to save the planet. Of course we cannot save the horny toad on the ground by these green energy plants or the birds who will get fried and chopped up but sacrifices must be made.
Yep, our oil, gas, and coal with run out in about 1,000 years...time to panic.
The game has been changed from pot limit Omaha to Texas Hold ‘em.
I bought some APAche the other day and will add as the price comes down.
There is always the oil and gas in the next state to power the country then the oceans. Never will run out.
BBB
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