Exxon Mobil, Chevron, ConocoPhillips and Texas
It has been a long time since major oil companies like Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and ConocoPhillips (NYSE:COP) had significant stakes in oil and gas in Texas, but with new technology, that could be about to change, as evidenced by the acquisition of XTO by Exxon Mobil, which may be the first of many as oil and gas producers look for new production sites.
To get an idea of how things have changed over the last 15 years or so, independent companies drilled 96 percent of the well in Texas in 2008, while the five major companies, which include Exxon Mobil, Chevron, ConocoPhillips, Shell and BP, only accounted the remaining 4 percent.
Some of the drilling spots left by the majors had significant reserves in them, but the cost of extracting it was prohibitive at the time, with prices not able to support it. Now with prices up and cost lowered, as well as new ways to extract the oil and gas, major companies may be revisiting Texas to get a piece of the significant pie that still remains under the ground there.
No comments:
Post a Comment