'Independents' - the industry term for companies that have more capital and know-how than the typical 'wildcatter' - can grow either by exploring and finding reserves or by buying a company that already has them.

Oil wells never really run dry. A big company will drain maybe 40% of a field. Pulling out the rest of the oil, which requires an outlay of incrementally more cash per barrel, often proves uneconomical for big companies with big overheads.

Drilling is risky because finding oil is only half the job. The real challenge is finding the money to pump the oil.

Tahl Raz Quotes