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.
BY: Rob Kerby, Senior Editor
“You get the idea,” writes Insley. “There’s a lot of money to be made here. An average land-leaser could expect to get anywhere from 10-25 percent of the payout on oil production. With a little back of the envelope math, it’s not out of the question to think that some of these local farmers and land-owners are cashing in 6-digit checks every quarter. If they have multiple wells on their property, the payout could grow even higher.”
“When it comes to shale oil, the first two places you’ll want to look are clear,” writes Insley, “the Eagle Ford formation in Texas and North Dakota’s booming Bakken formation.” For natural gas, Pennsylvania is a hot spot. Other fields are developing in Ohio and Arkansas.
The new found wealth of natural gas – tapped by such new technologies as hydraulic fracking is “set to create a ‘new world’ of energy,” writes Insley – and could mean an end to billions paid to foreign producers daily.
They’re not at all happy about that. Billionaire Saudi Prince Alwaleed bin Talal has warned shale oil and gas development poses a threat to the kingdom’s economy, the Wall Street Journal’s Summer Said reports. In an open letter to Saudi oil minister Ali al Naimi [in Arabic], Alwaleed also warns" “Our country is facing a threat."An anti-fracking film, “Promised Land,” starring Matt Damon recently bombed at the box office. Financed by the royal family of the oil-rich United Arab Emirates, the documentary attempted to prove that fracking is dangerous, reported Lachlan Markay.
Environmental activists have achieved fracking bans in Vermont, Buffalo, N.Y., and Pittsburgh, Pennsylvania. In Europe, the “green” movement has succeeded in prompting the French, Polish and Bulgarian governments to ban fracking. Similar efforts are vocal and growing in Ireland and Britain.
Is that a mistake?
“Everybody around the world has taken notice,” said Daniel Simmons, an energy scholar at the Institute for Energy Research, a Washington-based think tank and research organization. “They’re starting to wonder if they can get a part of the same energy revolution that we have here.”
The independent Beijing-based publication Caixin recently reported the Asian superpower is planning a “huge fracking industry” and that “the model for China’s anticipated success is the U.S. shale gas sector.”
Texas-based FTS International Inc., a leading fracking equipment company, has announced the signing of joint venture deals with partners in Brazil.
With the new technologies, America may no longer need Middle East oil, she said, adding, “With the right policies in place, America could meet 100 percent of its liquid fuel needs through safe, reliable North American sources by 2024.”
The International Energy Agency predicts America will overtake Saudi Arabia before 2020.
So, are we getting ready for a new crop of Jed Clampetts?
Could you be one of the overnight millionaires?
“Up from the ground come a’bubblin’ crude. Oil that is, black gold, Texas tea …”