According to Forbes Magazine, Occidental is out to disprove the widespread thought that the days of “easy oil” have passed by the U.S. With their industry peers moving towards endeavors of all sorts, offshore, LNG and Canadian oil sands, Oxy is sticking to their proverbial guns. Simply put by Oxy’s President Steven Chazen, “We’re in the oil recovery business, not in the oil discovery business.” This theory led them to an oil find of an estimated 1 billion barrels in California last year. The irony of this, what some are calling a “game-changer” find, is that it is situated over a 100 year old field. The executives of Occidental believe that the best place to find new oil is in old oil fields. In this particular case they are clearly enjoying the fruits of their business model.
Do you believe this theory can stand the test of time or are finds like this too rare to sustain a company and industry?
Read the complete Forbes Magazine article:
Occidental Petroleum’s Path to Easy Oil by Christopher Helman
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