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Politics : Peak Oil reality or Myth, of an out of Control System -- Ignore unavailable to you. Want to Upgrade?

To: dvdw© who wrote (687)	2/3/2012 12:25:56 PM
From: dvdw©	Respond to of 1580

Outtake from Oxys quarterly Q &A......confirms the situation to which this post is a reply. This is affecting capital deployment....news about CHK and OXY reflect at least in part, elements of this discussion. Expect OXY to advantage itself for the new mood coming out of CA. OXY is the strength there with long term understanding in place. CA is a big key.....not just for OXY but for Shale oil reserves, its estimated that some zones are over 500 ft thick....that oil is not counted anywhere........ Edward Westlake - Crédit Suisse AG, Research Division Good. And just on California, obviously you increase 5 rigs, say, every 6 months from the middle of this year. Any thoughts on where you see the sort of the maximum rig counts for California, driven by obviously internal constraints, say, organizational and maybe external constraints? Stephen I. Chazen No, I don't have any idea. We'll find out -- as the program boosts, we'll see where it takes us. It's relatively people-intensive, so you have to build your organization as you go. It's not just a bunch of guys, hopefully with -- hopefully, it's not a bunch of guys just fooling around on a computer. So you have got to build the organization as you go and you have to -- the people have to get more experienced. So you want to do it in a way you're not wasting money. The resource isn't going away. As we own the minerals -- we either own the minerals or we have very long leases, the resource isn't going away. So we got a lot of flexibility on when. And I really don't have any idea because the program always has surprises. Some of them are good surprises; some of them are not. But the program always has surprises. It's very difficult -- especially in California, it's very difficult to predict some maximum rate.