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Exxon Mobil held back in Permian Basin due to potash, WSJ reports

A vital crop nutrient is currently holding back Exxon Mobil’s (XOM) development of a key asset in the Permian Basin, Collin Eaton of The Wall Street Journal reports. Exxon Mobil shares a sizeable chunk of land in the Permian Basin with mining companies that extract potash and other minerals that produce fertilizer, blocking the company from direct access to oil-soaked rocks. More than one-quarter of its land coincides with underground potash mines, the Journal said, citing an oil analytics firm. Due to regulations, higher drilling costs, and safety concerns, wells in those areas are more expensive to complete and less productive, people familiar with the company’s operations said. This will ultimately yield less profit for the company than other areas of the Permian. Reference Link

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