Welcome back to another episode of Wall Street Unplugged!
Cactus Schroeder, Founder of Chisholm Exploration and oil veteran who has been drilling wells in Texas for more than 40-years, gives us an inside look at what’s really taking place inside the Texas oil patch.
He explains how massive cap-ex cuts, an cutback in Saudi oil production, and the huge decline in drilling costs will eventually lead to higher oil prices. He also highlights why prices are much more vulnerable to an oil shock than ever before.
Cactus then tells us how an old form a drilling is making a major comeback. In fact, this type of drilling is profitable at much lower prices since drillers can increase the amount of oil recovered by 25% compared to fracking. He believes this could be a game-changer in the industry.
Cactus is one of the smartest men you’ll find in the oil business. He has had personal interests in over 1,000 drilling projects. He was also credited with finding one of the largest oil producing wells in the Eagle Ford in 2011 – which he later sold to Norway’s Statoil for more than $1 billion.
If you are thinking of jumping back into oil stocks,be sure to listen to this interview first.