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One Texas company claims even $15 per barrel is profitable

Texas-based oil giant Carson Energy may have figured out a means to completely scoff at even the lowest of oil prices.

The industry can’t remove its gaze away from Carson. This week, the company released new analysis that shows rich Texas oil fields can be profitable at just $15 a barrel.

“Many investors feel you have to be getting over $60 per barrel for oil to be profitable, but that’s only on expensive shale plays,” Michael Johnson of Carson Energy stated in a press release. “Carson operates in rich Texas blanket sands where it’s possible to make money when prices are as low as just $15 a barrel.”

Investors are nervous at best with all the variables intruding on crude oil prices. However, many oil industry experts say this is often the best time to invest in new exploration and development. Wells and production are then in place when prices go back up, that is if a company can hold out that long. Experienced energy investors refer to this situation as one ripe for “double dipping.” An investor can benefit from very cheap drilling costs, and then have oil in production just as energy prices spike again.

In related news, Black gold keeps black days away.

Such a payoff is inevitable. Demand, although sluggish, is increasing worldwide.

“Once the extra supply of oil that’s on the market from expensive shale plays and tar sands has been used up, the global economy may find its way under-supplied and then it’s off to the races with high oil prices again,” Johnson said.

Carson hasn’t devolved information on exactly how $15 per barrel could work out in reality when many companies can’t survive on $40. But if anyone has figured it out, Carson would be a great guess. The company prides itself as the low cost leader that actually created oil and gas joint venture partnerships during the 1980’s oil boom. Carson not only survived previous busts, they ended up prospering.

“We have more experience than any of our competitors because we created this way of doing business. We’re like the General Electric of private oil and gas partnerships,” Johnson said.

The firm recently made headlines when they announced the Lone Star Collection. It’s a series of promising oil fields spanning 4 counties along the heavily productive Texas Gulf Coast. The Carson fields total nearly 7 square miles, with projected revenues exceeding $1 Billion Dollars. Analysts believe there are between 15,892,000 and 54,536,000 barrels of light sweet crude ready to be pumped.

31 comments

  1. sound like propaganda to sell stock– so how many wells is he drilling

  2. That’s probably actually true. Take the corporate greed out and oil does not have to be near as high as they claim. Even on the shale wells. Many of them pay out in as little as 6-12 or less and the rest is all profit and they continue to produce long after the payout.

    • Bull – seeing as there very few if any shale wells over 7 yrs old what do you base your commit on.
      If true the US would still be drlg instead of filling every possible tank withgn cheaper imports

    • Thad Daly It’s not bull. I have been in the oilfield for years and worked both , on the drilling side and the production side. So, I’m well aware of how long it takes a well to pay out, How much it cost to place a well in production and how much a well produces. Do you have persoanl knowledge of ANY of that information ? I also know for sure you’re full of bull, there has been shale wells around for over 30 years just in my area of WV and they are still producing because they are on my familys farm. You are thinking of horizontal shale wells and the ones we drillied 9 years ago are still producing oil and natural gas.

    • Some of the first shale wells were drilled in WV round the early 80’s. It was not in the marcellus nor utica shale, but, it was not that far off depth wise.

    • And if you think I’m wrong about the time of payout even on a marcellus well, you might want to check with an Antero comapny man because he’s the one that told us how long it was taking to get their investment back. We are talking about wells that produce more than 30 million cubic feet of gas a day, not to mention what oil and other products that come from these wells.

    • The wells drld in trhe ’80s were verticals not horizontals

    • Thad Daly No kidding I believe I stated thatin my reply. They were still shale wells regardless, which you stated in your reply there weren’t any shalewells until 7 years ago, which is not true. And the Horizontal marcellus wells we drillied 8 years ago are still producing also.

    • The difference is signaficant– as in area fracked

    • Never said there wasn’t a significant difference in horizontal and verticle wells ?? I have been on both types, on the drilling side, fracking side and the production and work over side.

    • Of course you get alot more production out of a horizontal well, because as you said you are fracking more of the formation. you do a mutiple stage frack, therefore getting more area for gas and oil to come out of the formation.

    • We have drilled 2 mile laterals out here and a few even further.

    • Most shale wells fall off significantly like 60-90% significantly a year after first being put on production….

    • Brenton Flatt they do seem to fall off fast but, not all of them do. Plus there is so much gas they pay out fast and even once they fall off they still make quite a bit of money.

  3. U.S. is the best in oil and gas but the people in other continents are greedy with us.

  4. It’s common sense the more u produce the cheaper the product but to Manny people have there hands in other people’s pockets if u know what I mean lol

  5. It wasn’t that long ago they were getting $12-$15 a Barrel!!

  6. Small companies will die off tho cuz there is no possible way we can make it below 40 and be successful or maintain producing

  7. Thats because guys in Texas make 12 bux an hour

  8. the lower the price of oil, the more money the refineries in texas are making

    • Gas SE Tx $1.94/ gal, oil is $44/ bbl = $1.05/gal difference $0.89 – $ 0.54 state and federal tax leaves $0.35/ gal for transporttion, refining, oil company profit, distributer profit
      State and feds are making more in taxes than oil compny

    • Yes that may be true. Crude makes gasoline, diesel, jet fuel and other petro products… if one oil company sells the crude to another oil company that refines it, the refinery is going to make more profit if there is an over 60% reduction in the price of the crude they are buying. That’s the only point I was getting at. It’s no secret the government is a bunch of crooks 😉

    • Thad Daly, Tried looking into this carson company… couldn’t figure out much about them. Wouldn’t make much sense from an business point of view to announce you don’t need any more money for your product unless there is some hidden agenda, like you have bigger investments in refining than crude production. That was my assumption. Otherwise I think they will go bankrupt if they keep announcing oil price drops are just fine to make their oil company successful… doesn’t really seem to add up.

  9. Thats oil not tar like alberta!!!

  10. Seems to me OIL was eighteen dollars a barrel in the late nineties and gas fifty cents a litre.

  11. It’s in how much it takes to get it out of the ground that’s drilling the depth fracking ect. That decides the profit the higher the cost the less th ed profit.

  12. Sounds like the investors r trying to screw the American ppl!
    Where r these investors a from ? Sadi Arabia?

  13. I’m not familiar with that specific field that Carson has wells in but I’m curious to know how deep they average, if they are directionally drilled, and if fracing is needed or not to get them producing?

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