You think $6 mil per well is a big investment?
Just to provide some reference as to the depths the "Big Oil Companies" will go and just how deep there pockets of cash really are:
http://www.forbes.com/sites/christopherhelman/2013/02/20/chevron-ma...
A few excepts:
Chevron began drilling this ultradeep well over a year ago, with the objective of boring down to big sub-salt prospects 29,000 feet beneath the surface.
ultradeep Davy Jones discovery in the shallow waters of the Gulf, having spent more than $1 billion on that one well, with nothing yet to show for it.
But there’s a limit to how many $200 million wells a small company like McMoRan can drill
Chevron will be into Jack, St. Malo and Bigfoot for $12 billion before the first oil and gas flows
Now granted the returns must be bigger to spend that much, but keep in mind that these companies have the money to "invest" in our land, so be sure to get a fair price - leasing, royalties and pipeline ROW annual rents.
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Replies to This Discussion
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Permalink Reply by 0i7okn54zwbdo on
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Chesapeake is not Chevron. Chevron has money; Chesapeake has debt. One of the reasons they have debt is because they tried to expand their operations and spent as if they were on Chevron's level. But your point is understood.
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Permalink Reply by Jed Clampett on
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I agree, I will not buy Citgo gas for my old truck. I wasn't saying that Chevron was our answer to anything, just look at the numbers they are spending on a few areas or even single wells. Even McRoMan who is obviously a small player (I never heard of them at the same level as Shell, Exon, BP, etc) will spend $200 million per well. The point is that there is a valuable resource under out feet, it takes lots of cash to get it out and make it usable, and the big companies can do it., Don't let them short change landowners in he process. If the value is there, somebody will come to get it and pay a fair share to the owners.
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Permalink Reply by Jed Clampett on
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I agree, Chesapeake is not Chevron, but they want to be, probably never will be. Another story stated Chevrons increase in output this year will be more than the output of Chesapeake. I think it is only a matter of time for Chesapeake to implode and be picked apart/broken up by the big boys with their cash. There are plenty of companies out there that do have the cash to spend and are willing to make big investments for big returns.
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