Daily Caller Piece: The FTC Should Ignore Chuck Schumer’s Embarrassing Attack On ‘Big Oil’

Consolidation in the U.S. shale sector has always seemed an inevitability to most seasoned industry analysts and observers. The comparatively high breakeven costs involved in drilling and completing 10,000 ft. deep wells with horizontal laterals spanning 2-3 miles places a premium on controlling vast tracks of leased land and the ability to leverage economies of scale. 

Thus, as time has progressed, companies have sought to either buy or merge with competitors operating on lands adjacent to their own to help achieve these objectives. The guiding principle in the shale patch in recent years has been “bigger is better,” and it has been the motivator of a series of mergers and acquisitions.