Mmarrkk

Why Investors Should Be Interested in Shale Oil

Don't know if APC's land grant acreage extends over the Oil Shale areas. There is a lot of federal land (think Naval Strategic Reserve) and there has been some leasing over the years. Some companies own rights from the early 1900's as well!! Chevron, Shell and XOM have been very busy securing land positions but you may not be able to hear or see it (stealth mode, if a 6 gazillion pound gorilla like XOM can ever be stealth). Also, much of the federal land has not been put out for lease. Monitor smaller companies like Barrett and XTO as they tend to get their noses in early land plays. There are also additional deeper plays for nat gas in this area that may make things interesting.

This is a long term opportunity. 10 years may be about right. For instance, the Shell pilot is on a micro fraction scale relative to a commercial plant and it will take 2 years or more for the in-situ retorting to yield oil. Then evaluations will occur, then they will enter into large scale build ups. That will take at least 3 more years. Then on a large scale, I'm guessing another 3-year heat cycle for retorting before the oil starts to flow. Whew. And that is assuming the greenie weenies don't get their panties in a wad which we know won't happen, right?? I think we may, may see gas from Alaska before Shale Oil. But heck, my guess on gas from Alaska is 10 years + as well. And if the Dem's maintain control of Congress, add 5 years to that as they are anti-investment, anti-oil and anti-prosperity. See Kudlow and Company on the tube.