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-- thank you.
Now to some big news on the big oil giants and how they're missing out on the US oil boom you would think that they would be way ahead of the game -- new stats show the book Exxon and Chevron are drilling the less oil than they did three years ago here's the thing though.
Today shall reported 60%.
Fall in profit.
-- two billion dollars shale right down.
Doesn't -- shape -- Cloris is economist -- energy issues expert at The Heritage Foundation great to have you back on the show.
Nick you know when we look at what's going on North Dakota makes it seem like this whole shale boom in fracking and everything that -- -- it's also at their ready to be taken and in our own production in the country is up so dramatically.
But then you look at what's going on with the majors what is happened Dwyer they not getting -- -- Well part of it.
Is they are getting it on it but it probably not as much as they once you because it was really a sprint to the drilling rights and a lot of small companies that have more flexibility and our more able to adapt rave about -- to these drilling rights CO more small and midsize companies taking up the opportunities in places like North Dakota.
Texas Ohio and Pennsylvania.
Exxon's oil and gas production fell by 6% from the previous year Chevron down almost two and a half percent -- though didn't get in.
On the film and then they got punished for it I mean they had this two billion dollar write down based on.
North American shale assets that turned out not to be as productive as they thought they were going to be how did that happen.
Yeah and that's part of that the process is understanding where this oil is and how quickly making data and you've seen.
The drilling costs increase -- companies like shell and next time who really haven't been in the shell game before so.
You're seeing some adjustments of these bigger companies have to make with shale oil and gas deposits -- they haven't before and as a result.
Other cost of increase in their profits are a little bit down this quarter.
Meanwhile you know they -- pivoting to try and make up for what's -- you see companies like marathon says they're pulling out of Libya so they can focus on hunting for shale assets at home.
But that's a safer -- what do you think happens going forward to because to me it seems like a logical thing would be for Exxon and Chevron and like to come in now.
And just snapped up the assets of the smaller companies that went in and they did the ground work and they found.
We -- it was working.
You know -- now -- the majors would come in and just buy up those assets do you think that's gonna happen -- how does that play out.
Yeah I think up part of that's gonna happen but you have to understand that sometimes the small midsize companies are actually very big soup plays with companies like occidental have a market capital of overall.
Seventy billion dollars so I think they're gonna try and do that I think they're also -- to try and expand globally to places like Germany.
And Poland and China where we know these shale deposits exist and they haven't quite been develop it.
In no way that the United States has started to develop -- It's interesting to watch -- Cloris thank you so much for coming on.
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