Is there an oil boom afoot in Texas?
Right now, the Permian Basin has as many active oil rigs in the Permian Basin as the rest of the nation combined. And the U.S. Geological Survey announced its largest discovery of recoverable crude ever – some 20 billion barrels worth.
David Hunn, reporter for the Houston Chronicle, says an epic land grab is underway in Midland-Odessa, as companies fall over each other to secure places to drill.
“These companies are so anxious to get land, and to get land in the best spaces, that they’re sending out land men,” he says. “Their job is to pin down rights to drill. They’re sending them out to the same locations. I’ve heard stories about guys following each other to figure out where they’re going. All of this interest is driving the price per acre just straight up.”
What you’ll hear in this segment:
– How expensive land has gotten in the area, more than a 15-fold increase from a decade ago
– Why the land prices are rising while the oil price is dropping
– What horizontal drilling means for drilling rights and how folks in the area are reacting
