The Rising Influence of Rising Affluence

[DewDiligence]

OXY abandons Bakken shale:

http://www.wsj.com/articles/occidental-petroleum-swings-to-loss-1446034163

Occidental Petroleum Corp. is bailing out of its oil fields in the Bakken Shale in North Dakota, saying Wednesday that its operations there were losing money at current oil prices and showed little hope of becoming profitable.

…Occidental said it will net $600 million by selling its Bakken acreage to an undisclosed buyer and will turn its attention to the Permian Basin in West Texas.

“With this $600 million we could run four to five rigs in the Permian for a year and generate more production than we would get out of the Bakken,” said Steve Chazen, the company’s chief executive. “We just don’t see how it competes for capital inside the company in any reasonable price scenario,” he told investors and analysts Wednesday on a conference call to discuss earnings.

…Occidental’s Bakken output fell 19% in the quarter compared with last year, to 17,000 barrels of oil a day.