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The oil -- are having quite the party because oil prices have been on track for a third weekly gain we haven't seen -- a while while investors are busy dancing to the benchmark.
What's Texas intermediate -- that's the benchmark here in the US and then you may know branches overseas.
One energy giant is quite -- flying under the radar.
I'm working with a different grade of oil could be the bargain by you've been looking forward John Schiller -- energy 21 chairman and CEO.
Joining me now from Houston in a Fox Business exclusive and John looks explain to people.
The difference between west Texas and the Wii's -- light sweet and that there is a price differential to Louisiana's a little bit more expensive.
Yeah I think the signal there's two big things -- is equality crater itself which is we have were heavier crude.
We have more -- let's -- we can make more diesel.
And there were located on the Gulf Coast refineries are so we have minimum transportation.
Cost to get through.
-- you do business in Louisiana onshore in Texas on shore and then in the Gulf of Mexico which would of course be offshore.
Let's talk about the situation right now with their company.
I was looking into it you've got nine analysts who cover you all reading you -- -- and yet the stock is down year to date about 23% Europe for years 16%.
There's the highest short float right now I think 8% of the flow is being shorted at the moment what everybody -- wrong about this company.
Well I've I think we'll have a world that they were -- wants results results immediately immediately -- and we've missed phone production the last two quarters.
What their messages that we're creating an awful lot of value right now -- horizontal drilling and we're drilling wells.
-- -- the twelve million dollars have been delivered a million barrels net to the company.
You can do the math -- a hundred dollar -- what that means.
Also we're girls were very attractive well you're gonna she's really good results out of us as we move forward coming up from the penalty box a little bit -- some -- some production.
OK so let me just -- -- say you said we will see some better numbers coming you did miss set twice on production when can you give us a C three to six months a year.
I you know -- we do our -- were -- June 30 in the year or so will be announcing our results at the end of August we'll get some temporary results next week in terms of reserves and production and things like that.
And then we'll just -- -- I think over the next six months did you watch a drone program.
Start -- and then and find -- which builds.
-- and the west delta area has been a big home run -- -- use a lot of drilling in that area I think you'll see the growth that the people looking for while regret a lot of free cash -- -- -- that since 2005 about five.
Acquisitions totaling a big chunk of change more than two billion dollars -- -- in a market for more opportunities.
But -- -- we're always looking and it's it's actually kind of bit of a buyer's market right now there's a decent amount of assets available in the Gulf of Mexico both deep water and shallow.
And so we're always kicking tires and that -- the right opportunity presents itself.
Which -- -- visual -- -- -- we look forward gas still don't really interest was much -- -- looking for the.
You -- it seems and we as we talked to some analysts say.
They in essence said that -- investors almost prefer to focus on your onshore operations vs the offshore.
Why isn't the Gulf of Mexico getting respect as this trail back to something from the BP thereof what had happened with the that the well that became -- Tell me what the problem is there.
But I was a couple of commemorations weren't what people mess with us -- -- -- -- 657 -- productions war.
-- has a much deeper and different decline.
The natural gas company than in the past the knock on the Gulf of Mexico have been -- -- right because aghast.
Shall we don't fight the -- -- decline rates that's warned.
To his hurricanes obviously when Katrina ahead and -- that he had a back to back win me back in 2005.
I think that scared people away.
And third is what we get really big results from wells but we are -- -- scared to drill so.
I can't tell you that -- undermine the eight out of a hundred successful show wells.
I -- that -- a mile Wellesley volume make as much money as five or six of those.
That's good -- for for me if I -- about the may not looking at this and saying there there's opportunity not necessarily this second but down the line John.
They -- so much talk right now about how the US may very well become energy independent by the year 20/20.
I have never really heard that until recently it -- can I assume then that that.
But the government isn't exactly standing in your way of doing your job and and growing your business that things are pretty decent at least the relationship at this point or do we have that wrong.
I'd -- decent -- where we've learned to live with each other things are slower and -- -- -- -- him.
A lot more intense inspections but you know the companies are doing the right -- -- -- If it's not a nuisance it's a nuisance but it doesn't slow us down or people who get -- job done.
I do think there's a chance we get closer -- energy independent that the big the dream.
To get all the way there are but we're we're growing all over all time high -- or recent high right now seven point four million barrels a day so.
That's going toward replacing.
Them out of -- that we Byrne arena making headway.
Love to tell these kinds of stories John thank you very much and by the way EXXI is part of the XOP which is the spider -- oil and gas exploration and production.
ETF and it's an interest in -- and nine analysts haven't had a -- good to see John we come back.
-- love to thank you for -- -- John Schiller any time energy 21 chairman and CEO he -- you third trailing these horizontal wells are coming in they'd they'll make production at some point soon.
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