Friday, December 3, 2010

Keith Schaefer: Pushing the Boundaries

The Energy Report: Keith, the Oil and Gas Investment Bulletin primarily covers the Canadian oil and gas (O&G) industries. What's newsworthy north of the border right now for our U.S. readers?

Keith Schaefer: The shale-oil revolution is still going full force, particularly around the high-profile Bakken area. We're hearing that new areas are opening up, expanding what were previously considered the boundaries of the Bakken. The main area of the Bakken is in southern Saskatchewan, but now it's been shown that it's productive right down to the U.S. border. It's also going over as far as Alberta. The Bakken is potentially very productive in Alberta.

There are new staking rushes that are happening. A lot of the juniors are leading the way and they are getting some great land positions. That's setting the average retail investor up for a lot of new plays where they can make some money.

TER: Why are companies exploring these areas now?

KS: The shale-oil revolution started in the Bakken in about 2002 and continued for five years, then the market crash hit. For two years, none of these companies has done much exploration work. They only drilled the land they already had that had no exploration risk. (more)

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