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Gas-to-Liquids Technology Comes of Age?
Long considered a step child of the oil and gas industry, gas-to-liquids (GTL) technology might be coming of age according to two recent articles in “Rigzone”. Conceived in Nazi Germany, nurtured in apartheid South Africa, and reaching maturity in countries with large isolated natural gas reserves and only limited domestic markets, GTL has never been… Read More
Laredo Energy Tries its Hand at Oil
Traditionally a gas explorer and producer, privately held Laredo Energy, is now exploring for oil in East Texas according to a recent article in “Rigzone”. Funded by a cash infusion of $130 million from private equity sources, and motivated by soft natural gas prices, Laredo is targeting the oil prone Eaglebine shale in Brazos, Burleson… Read More
ExxonMobil Expands Permian Presence
“Rigzone” reports that ExxonMobil, through its subsidiary XTO Energy Inc., has increased its production and acreage position in the Permian Basin through a non-cash swap with LINN Energy. XTO will add nearly 26,000 acres in the Wolfcamp and Sprayberry prone areas of the Midland Basin which are currently producing approximately 2,000 barrels of oil equivalent… Read More
Shale Debt Increases
“Rigzone” reports that shale debt has doubled over the last four years while revenues have only increased 5.6%. Consequently, many unconventional operators are spending 10% of revenue on interest, compared to ExxonMobil’s .1%. Fifteen shale producers have already written down $35 billion in assets, and at least one operator, HighMount Exploration and Production, is considering… Read More
Shale’s Challenges
“Rigzone” reports that most industry observers agree that 3-D seismic, horizontal drilling and hydraulic fracturing led to the shale revolution which in turn fueled the manufacturing renaissance. However, significant issues loom on the horizon for unconventional oil and gas plays. While there is agreement on the issues, there is a wide range of opinions as… Read More
