Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

How to Profit From the New Oil Boom in Texas

Commodities / Crude Oil Feb 06, 2011 - 08:11 AM GMT

By: Investment_U

Commodities

Best Financial Markets Analysis ArticleDavid Fessler writes: It was 1894 when a crew of workers in Corsicana, Texas were drilling for water… only to strike oil instead.

The rest, as they say, is history – and Texas’ relationship with black gold since then is legendary.


And today, there’s a brand new oil boom in Texas.

Located just outside Dallas, Texas, the massive Eagle Ford oil and gas shale formation is roughly 20,000 square miles in size. It stretches some 400 miles long and 50 miles wide, from the Mexican border through San Antonio and up into East Texas. It’s believed to hold one of the largest oil and gas deposits in America, with a depth between 4,000 feet and 12,000 feet.

And you’d better believe that America’s heavyweight oil and gas companies are all over this. Here’s how you can claim your share of the action, too…

The Big Boys Are on Board

“I expect the Eagle Ford [will] probably be the hottest single area in all the lower 48 states in 2011.”

So says Mark Papa, Chairman and CEO of EOG Resources, Inc. (NYSE: EOG), one of the biggest leaseholders in the Eagle Ford area.

He’s not the only one who thinks so.

Oil and gas companies – large and small – are all scrambling to Eagle Ford, shifting their exploration and drilling resources to hunt for oil while natural gas prices remain soft.

Royal Dutch Shell (NYSE: RDS:A), BP (NYSE: BP), Statoil (NYSE: STO) and China’s CNOOC are all snapping up leasehold acres in the region. And they’re paying big money to do so…

•Statoil and Talisman Energy (NYSE: TLM) agreed to pay Enduring Resources $1.3 billion to help develop its Eagle Ford acreage.
•CNOOC paid $1.1 billion for a 33% stake in Chesapeake Energy’s (NYSE: CHK) Eagle Ford acreage.
•India’s Reliance Energy put up $1.3 billion to buy acreage and form a joint venture with Pioneer Natural Resources (NYSE: PXD), another Eagle Ford leaseholder.
And you can see how that interest has translated in terms of drilling permits…

And Drilling Permits Are Ballooning

In 2009, only 94 permits were issued. But in 2010, that number exploded to 1,018 drilling permits – a 982% surge.

Take EOG, for example. Last year, it had seven rigs operating in Eagle Ford and drilled 110 wells. This year, it expects to double its number of rigs to 14 and drill over 250 wells. Most other companies in the area plan to double their drilling rates as well, diverting rigs from gas-only plays to the Eagle Ford for at least 2011.

All that drilling has resulted in the output of natural gas liquids and crude oil quadrupling to 3.9 million barrels last year.

The Way to Play the Eagle Ford Situation

Quoted in the Houston Chronicle, Ralph Eads, head of Jefferies’ Energy Investment Banking Group, said: “The Eagle Ford Shale in 2011 will really hit its stride. The economics of the Eagle Ford are probably better than almost any other play in the world… the returns are stunning.”

With $100 oil a grim reality again, take a closer look at EOG Resources. I believe it’s a great way to play the hottest oil drilling area on the planet.

Good investing,

Source: http://www.investmentu.com/2011/January/reits-top-sector-for-income-investors.html

by David Fessler, Advisory Panelist, Investment U

http://www.investmentu.com

Copyright © 1999 - 2008 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules