247WallStreet is reporting:
The Permian Basin in West Texas is truly a story of the Phoenix rising
from the ashes. Since its discovery, the oil-rich region has had its ups
and downs, with activity sloping downward through the 1960s and early
1970s, reviving with higher oil prices in the late 1970s and 1980s,
dwindling again in the 1990s and then roaring back in the 2000s. Now
there is a growing consensus that the region may hold much more oil than
was ever estimated in the past.
In a new research report, the oil exploration and production analysts at
Wunderlich make it very clear they like the Permian for the variety of
stacked pays offered. They also think that producers are just starting
to understand the full potential of the resource plays in the region.
They estimate that there is the potential for more than 100 years of
production and that the region could have well over a billion barrels of
oil. Due to the incredible resource size, most of the major exploration
and production companies are there, in addition to the large
integrateds.
Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here.
The companies that would benefit:
- Anadarka
- Apache
- Chevron
- ConocoPhilips
- XOM
- EOG
- OXY
Summary:
The big boys have a decided edge in the Permian Basin. They have the
financial firepower to cover the costs associated with working in far
West Texas. They also provide investors with the security of longevity
and success. That bodes well for the future of a portfolio with these
top names.
These Permian Basin companies are poised to increase American oil
production significantly. Currently the number stands at about 7 million
barrels per day. One way the United States may be able to fight out of
its current economic malaise is to become a net exporter of energy, both
oil and natural gas. With the possibility of over a billion barrels of
oil in the region, new exporting may be a reality sooner rather than
later.
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