Is the new oil boom going to make you rich?
If you own mineral rights to your home, there may be an unexpected paycheck in your future – but for the rest of us, America's new horizontal drilling and hydraulic fracturing technologies could mean relief from oil cartel boycotts, fuel shortages and high prices at the gas pump. However, not everybody is happy about it.
Fred Hambright has seen a lot in his more than 60 years in the oil business, but nothing prepared him for the craze now sweeping the prairies of Kansas. Since 1951, the 83-year-old Kansan has made a living buying up leases for oil drillers. Six months ago, Hambright says he was purchasing leases for $15 to $20 per acre. Now those prices have skyrocketed. Hambright says the largest check he has written so far was for $900,000 – just for the right to drill.
“The Mississippi Lime formation in Kansas is the latest ground zero in a gold-rush-style oil boom sweeping the U.S.,” report Jake Whitman and Sharyn Alfonsi for ABC News. “New technology is turning lands once thought to be sucked dry of oil and gas into vast untapped reserves that could produce for more than 100 years.”
From Pennsylvania and North Dakota to Texas, the newly developed technologies of horizontal drilling and hydraulic fracturing are quickly turning the U.S. into an oil superpower. By some estimates, 2 trillion barrels of oil are waiting to be drilled — nearly twice the reserves in the Middle East and North Africa.
“Over the last three years the oil and gas industry has been churning out millionaires,” writes financial advisor Matt Insley. “No. I’m not talking about company CEOs or Saudi oil sheiks. Instead I’m referring
to everyday Americans that found themselves in the right place at the right time.”
“Three hundred thousand dollars. That’s how much a guy named ‘Coomer’ makes each month from an oil well he drilled. In his own back yard,” reports Hollie McKay for Fox News. “We’re talking real-life ‘Beverly Hillbillies.’”