News out yesterday..... Cracking 60 years ago was not anything like what is done today....
Texas regulators have ordered a subsidiary of Exxon Mobil Corp. and another company to prove that their wells near Fort Worth aren't causing earthquakes.
A study published this week by seismic researchers at Southern Methodist University in Dallas connected two wastewater disposal wells operated by XTO Energy Inc., which is owned by Exxon, and EnerVest Operating LLC, with a series of earthquakes in Azle, Texas. On Friday the Texas Railroad Commission, which regulates the state's oil and gas industry, told officials at both compathey need to appear at hearings scheduled for June to justify why their wells shouldn't be shut down.
OSLO -- Norway's government said Friday that the giant Johan Sverdrup oil field in the North Sea requires an oil price of only $32 a barrel to be profitable, as it asked parliament to approve the $15 billion project at a time when many other similar plans are being delayed due to low oil prices.
"This development is the largest industrial project in Norway in recent times," said Minister of Petroleum and Energy Tord Lien .
Johan Sverdrup, operated by Norway's dominant oil and gas operator, state-controlled Statoil ASA (STO), is the country's fifth-biggest discovery. It will be the cornerstone of the country's oil production and could contribute about 30% of Norway's crude oil in 2025. Statoil had previously said the field was profitable at an oil price below $40 a barrel.
Go back 3 years and look at my First Solar posts. Everything we so negative, I bought at $14. Today they are over $60. As I stated then as I will state now. I can't say we are at the bottom. SDRL could be bought at $10 again or even $8. But if you put your 3 year horizon on this stock, I would extremely surprised if we are not looking at a triple. Buy it and put it away for 3 years. I have built a significant position in the last several months and will buy more below $9 if it goes back there. Good luck longs!!
The liability associated with fracking as more and more evidence supports the connection between fracking and earthquakes will ultimately make the risks and insurance cost of operating the business gross margin negative at any energy price. As soon as the insurers start assessing the risk of a major shaker taking down houses or buildings and killing people, the sooner this industry technology will be obsolete and/or banned. We give it maybe another year or two at best due to the connection relationship just now being realized.