Comparing Large Oil And Gas Names Working U.S. Land Plays, Part I

The United States is going through a change with respect to land oil production. Technology has allowed access to shale oil. These shales were tested for decades using conventional (vertical) techniques. Many of these wells were successful, but did not produce enough resource to be commercial. Horizontal techniques first became profitable when used in natural gas plays. It was not long before oil and gas companies were able to use this technology to obtain liquids. Now that natural gas supply is much greater than that of demand, prices have pulled back significantly. Liquids prices have only pushed higher, which easily substantiate unconventional methods to obtain resource.

I recently wrote a series of articles that identified oil and gas names increasing liquids production quicker than gas (click here to read part 1). The series not only had the physical numbers of production, but more importantly, addressed the number of rigs drilling for liquids versus gas in the United States. This increased number of rigs shows a dynamic that will affect several sectors in United States liquids plays from oil service, to proppant producers and companies that purify frac water.

The North Dakota Bakken and Eagle Ford of Texas are just two areas being worked for liquids production. Both have some of the largest oil companies in the world buying up acreage. To convey which liquids plays have the most upside, one must look to these large oil exploration and production companies. If the best operators have large acreages, it is my guess this would indicate these companies have faith in possible production of these particular plays. This list will focus on large oil and gas companies, and its activity in U.S. shale plays.

Source: Seeking Alpha

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