Oct 24 2011
Penny Oil Stocks – Principal Variables In The Professional Report
Penny Oil Stocks That Can Piggy-Back Off Chevron Will Prosper Thereââ¬â¢s a similar story down in Texas. The Permian Basin of the Midland/Odessa area may be thought of as a sleepy little town where a few old wells on timers periodically turn and pump a few barrels from time to time. Thatââ¬â¢s certainly the impression Iââ¬â¢ve gotten each of the times Iââ¬â¢ve driven through there. The truth of the matter is that there are big players snooping around out there. Turns out that there may be much more life left under the surface that most realize. While the Permian Basin has been a prolific oil field in times past, the reality is that the many, many wells that have been drilled have primarily just grabbed the low-hanging fruit. This is actually great news. See, the bottom line is that the vast majority of the known oil reserves around the world are practically off limits for all intents and purposes. The ground is owned or under the control of foreign nations or the national oil companies. So, residual oil, and lots of it, is great if itââ¬â¢s able to be extracted. The reason that there is a lot of oil left stems from the nature of the geology. The first wells in the area were able to get into permeable ground with high levels of porosity. Easy oil poured in. More restricted oil stayed put. Nobody knows for sure, but guesstimates assume that 80% or more of the oil is still there! The great thing about this is that an oil rich area carries a certain familiarity that eases the business model. So much of the infrastructure is in place. Just as with the coal miners of West Virginia, such an environment comes with its own trained employment force that is intimately familiar with the oil business. Of course, none of this matters unless we can get the oil. While many companies have come and gone now that the easy oil is history, new technology is at the heart of efforts to get the motherlode. Chevron is a key player in these endeavors, though this is hardly one of the penny oil stocks that can make you rich.. Talented personnel are able to computer mapping and analysis to develop 3-D models. The science behind the whole process can be quite complex for the laymen, but the bottom line is that they can detect previously overlooked or missed formations and get at the goods. And detection is just part of the process that penny oil stocks (see pennyoilstocks.org) would engage in. Smart technologies allow companies to get into oil that was previously inaccessible through using new drill bits, fluids, and methods that cause less damage to the formations yielding the goods. Talented drillers are literally able to steer the bit to a precise area within a few inches of their goal several miles beneath the earth. And modern fracking allows companies to break up rock so far down that it was once thought inaccessible, and therein lies the opportunity for penny oil stocks to hand over quadruple digit returns when you’ve found the right stocks to buy (see www.miningstockdepot.com/stocks-to-buy to learn more).
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