Jrbarnes

BP Strikes Black Gold: A Boon for Energy ETFs?

BP's find at 25k feet is hardly likely to be oil. At that depth, the termperature and pressure cook the hydocarbons into natural gas, not oil. BP carefull refer to BOE, or barrels of oil equivalent in their press release. Natural gas in in oversupply, and selling for $3 per mcf or less at the well head. It is hghly unlikely that wells like BP's can be affordably drilled and produced at these natural gas prices.