Considering the CEO of ExxonMobile was Trump's choice for Secretary of State, this purchase has the global world of petroleum all a flutter.
January 17, 2017
By Earnest Scheyder
Exxon Mobil Corp (XOM.N) (click here) said on Tuesday it will pay up to $6.6 billion to double its holdings in the Permian Basin of west Texas and New Mexico, the largest oil field in the United States.
The deal, Exxon's biggest since its 2009 buyout of XTO Energy, is the latest by oil producers across the Permian since last summer, with technological improvements and range bound oil prices fueling the buyouts.
Exxon is exchanging an initial $5.6 billion in stock for leases covering roughly 275,000 acres from the Bass family of Fort Worth, Texas. Additional payments of up to $1 billion will start in 2020, depending on how the acreage performs, Exxon said in a statement.
Most of the wells to be drilled on the land should provide "attractive returns" with oil prices CLc1 at or above $40 per barrel, Exxon spokeswoman Suann Guthrie said....
Now, when I read this purchase was made, I said to myself, "Self, why would ExxonMobile who is coveting Russian oil fields bother about West Texas's Permian geological formation. Just for fun, the Permian is 299.0 to 251.0 million years old. It has always been odd to realize the Christians of West Texas oilmen acknowledge the existence of "The Permian." They say the Earth is only a few thousands years old, but, recognize the aged reality of their oil. Interesting, isn't it? Curious.
At any rate, I said to myself, "Self, why would ExxonMobile who is coveting Russian oil fields bother about West Texas's Permian?"
January 17, 2017
By Earnest Scheyder
Exxon Mobil Corp (XOM.N) (click here) said on Tuesday it will pay up to $6.6 billion to double its holdings in the Permian Basin of west Texas and New Mexico, the largest oil field in the United States.
The deal, Exxon's biggest since its 2009 buyout of XTO Energy, is the latest by oil producers across the Permian since last summer, with technological improvements and range bound oil prices fueling the buyouts.
Exxon is exchanging an initial $5.6 billion in stock for leases covering roughly 275,000 acres from the Bass family of Fort Worth, Texas. Additional payments of up to $1 billion will start in 2020, depending on how the acreage performs, Exxon said in a statement.
Most of the wells to be drilled on the land should provide "attractive returns" with oil prices CLc1 at or above $40 per barrel, Exxon spokeswoman Suann Guthrie said....
Now, when I read this purchase was made, I said to myself, "Self, why would ExxonMobile who is coveting Russian oil fields bother about West Texas's Permian geological formation. Just for fun, the Permian is 299.0 to 251.0 million years old. It has always been odd to realize the Christians of West Texas oilmen acknowledge the existence of "The Permian." They say the Earth is only a few thousands years old, but, recognize the aged reality of their oil. Interesting, isn't it? Curious.
At any rate, I said to myself, "Self, why would ExxonMobile who is coveting Russian oil fields bother about West Texas's Permian?"
by Adam Wilmoth
Oklahoma City - Strengthening oil prices (click here) have caused the U.S. oil patch to heat up, but the recovery is far from uniform.
Oklahoma's SCOOP and STACK plays are among the fastest-growing oil fields in the country, but even those have little comparison to the massive interest sparked in the vast Permian Basin, which stretches from Midland, Texas, into southeast New Mexico.
Demand for the Permian has led to staggering sales prices for leases in the area in recent weeks, including deals involving Oklahoma companies.
Tulsa-based WPX Energy Inc. last week agreed to buy 18,100 acres in the area for $775 million. Excluding production, the deal translates to about $28,500 per acre....
See, WPX Energy, Inc. never stopped to ask itself, "Self, why would Exxonmobile who is coveting Russian oil fields bother about West Texas' Permian?"
After all, there are such great companies such as WPX Energy, Inc. that plan to drill "The Permian" dry.
It is because of the oil companies like WPX Enegy, Inc. that Exxonmobile bought all those acres of leases of "The Permian."
The Permian Basin is so coveted and understood by Texas oil barons they have made detailed labels to it's formations.Oh, by the way, the Republicans have enormous respect for the USGS when it makes maps of "The Permian" and "Eagle Ford." USGS employ scientists. Curious.
The reason Exxonmobile bought all those leases is to PROTECT itself from smaller operators such as WPX Enegy, Inc., in an attempt to control the glut of oil on the market.
November 21, 2016
By Robert Rapier
Last week (click here) the U.S. Geological Survey (USGS) announced the largest estimate of continuous oil that it has ever assessed. The area assessed is in the Permian Basin, a region that has been producing oil continuously for nearly 100 years.
The Permian Basin lies underneath western Texas and southeastern New Mexico. The geology of the Permian Basin is rich and complex, both horizontally and vertically. The Permian Basin has commercial accumulations of oil and gas in stacked layers, at depths ranging from 1,000 feet to more than 25,000 feet. The greater Permian is made up of several subsidiary basins, the largest of which are the Midland and the Delaware.
The new USGS assessment is of the Wolfcamp shale in the Midland Basin portion of Texas’ Permian Basin. The new USGS survey estimates that there are 20 billion barrels of undiscovered, technically recoverable oil in the Wolfcamp alone. Quoting from the USGS news release:
“The fact that this is the largest assessment of continuous oil we have ever done just goes to show that, even in areas that have produced billions of barrels of oil, there is still the potential to find billions more,” said Walter Guidroz, program coordinator for the USGS Energy Resources Program. “Changes in technology and industry practices can have significant effects on what resources are technically recoverable, and that’s why we continue to perform resource assessments throughout the United States and the world.”...
ExxonMobile is not a company run on hubris. It is a pragmatic corporation that already knows how much it is going to cost to ATTEMPT to drill the Russian Arctic.
ExxonMobile is taking on a monopoly of major oil formations to control the price of oil. ExxonMobile is not as immoral as BP with their drilling that pushes every limit that costs human lives and collapsed fisheries.
Despite the harsh weather conditions, ExxonMobil has more than 28 million hours without a reportable incident at our Sakhalin project. Hear ExxonMobil employees talk about putting safety first.
One has to ask what is reportable and whom's definition.
Russia isn't stupid. Russia needs it's fisheries. It is a sole communist country that most major Western powers want to see collapse. If Russian oil operations did to the Russian fisheries what BP did to the Gulf of Mexico and American fisheries, there would be dire consequences. See, Russia has an incredible REGULATORY INFRASTRUCTURE and the integrity of the natural world in that country proves it!
Now, Sakhalin is an extreme environment, BUT, it ain't the Arctic Ocean.
But, Russia wants to drill in the Arctic Ocean. The Arctic Ocean is not the north Pacific nor is it the Bering Sea. Okhotsk and Bering are small bodies of water bound by land and interrupted by island chains. The Arctic Ocean is none of that.
ExxonMobile are among the few multinational companies with assets enough to contain the petroleum industry on it's own terms. That is why ExxonMobile purchased heavily in "The Permian." The company knows there is oil in West Texas. That is the least of it's concerns, but, it is tired of all the small operators sinking the price of oil. So, ExxonMobile is creating it's own special insurance against either complete collapse of Russia and/or failure in the Russian Arctic Ocean.
THAT IS WHY EXXONMOBILE BOUGHT THE LEASES IN "THE PERMIAN."
Honestly, do I have to spell out everything?
If Donald Trump removes any or all the sanctions with Russia, IMPEACH!
All of this is well thought through by ExxonMobile, it just needed a President of the USA to cooperate.
