Permian Basin, Exxon Mobil, Texas Permian Basin discussed on All Things Considered
Two industries, the smaller independent producers and the Jain Norma's multinationals of which the big ginormous ones. There is news today, Chevron and Exxon Mobil said this morning. They're going big in the shale oil fracking business down in the Permian basin in Texas, which we noted because for the better part of the past decade or so that side of the American oil production, boom has been the province of the independent drillers. Marketplace has been Bradford explains what's going on there when big oil companies were looking for new reserves a decade ago analysts Artem abroa- that rice that energy says the turned to the sea back in two thousand ten the world was still hoping that deep water will become the next major source of supply, but that is expensive. And meanwhile, independent producers began extracting, large amounts of oil and gas from shale rock on land, Chevron and Exxon Mobil, I invested in the large US shale formation. Called the Permian basin only a few years ago. But now both companies say they will double production within five years history. Professor, Diana hidden at the university of Texas Permian basin says this is the nature of the oil game small guys come in. And they set the table and then the majors. Banquet car Ingham at the Texas. Alliance of energy. Producers says that'll drive up the cost of land for smaller producers that have tighter margins there, probably is some element of squeezing out the smaller producers, or at least kind of pushing them to the fringes where that production may be cheaper per barrel. The big oil companies haven't completely eliminated their own risk hidden says she'll drilling is still a new field. What we don't know. How long this level of production will hold up as long as it does. It's good news for consumers at the gas pump US shale production has helped cut oil prices.