mdn2000
VIP Member
- Banned
- #1
Oil discovered it an old oil field, and its a gusher, a bitter pill for peak oil theorist. I know the argument the fools will give, this discovery will only last the USA for 20 days, yet Kern oil fields have been some of the most production in the USA since the last century, this oil field continues to surprise us with production and now a gusher.
I posted this in another thread but the significance is Peak Oil shattering
Al Gores family once owned Oxy. Gore gave strategic oil reserves to Oxy during the Clinton administration.
I posted this in another thread but the significance is Peak Oil shattering
That the gusher is situated in a hydrocarbon basin that has been picked over for 100 years validates the philosophy extolled by Oxy President Steven Chazen and Chief Executive Ray R. Irani: The best place to find new oil is in old oilfields.
Within two years the field could be producing 100,000 barrels a day, putting it among the busiest five fields in the U.S. That would be enough to generate net income of $1 billion a year, a nice bump for a company that already boasts higher net margins than any other big oil company, with $3 billion earned on $18 billion in revenue last year. "This find is a real game changer," says Douglas Leggate, oil analyst with Bank of America ( BAC - news - people ), "and not just for Oxy." He thinks the reservoir is 20,000 feet underground and could stretch 50 miles to the north through acreage controlled by Chevron ( CVX - news - people ) (which has a minor stake in Oxy's find) and Aera Energy (a joint venture between ExxonMobil ( XOM - news - people ) and Royal Dutch Shell ( RDSA - news - people ))
Al Gores family once owned Oxy. Gore gave strategic oil reserves to Oxy during the Clinton administration.
http://www.forbes.com/forbes/2010/0329/outfront-oxxy-irani-oil-exxon-energy-oil-oil-everywhere.htmlThe secret to Oxy's success: no wildcatting. "We're in the oil recovery business, not in the oil discovery business," says Chazen, 63. Nearby the find is a 100-year-old field called Elk Hills, which Oxy bought from the federal government in 1998 for $3.6 billion. The deal was sponsored by then Vice President Gore as part of his "Reinventing Government" initiative--that is, getting bureaucrats out of the business of operating oilfields