Continental Resources, Inc. (CLR), Chesapeake Energy Corporation (CHK), Pioneer Natural Resources (PXD): You Handed OPEC a Trillion Dollars Again Last Year

anImage

OPEC’s profits have yet to dry up. Photo credit: Flickr/Mark Rain

Export earnings among OPEC members rose to $1.26 trillion last year. That’s up from the $1.15 trillion it earned in 2011. That’s an incredibly large number. The entire U.S. economy is estimated to be $16.62 trillion, meaning OPEC’s earnings are about 7.5% of the size of the entire American economy.

Continental Resources, Inc. (NYSE:CLR)While the U.S. isn’t solely responsible for pouring a trillion dollars into OPEC’s coffers, it is on track to send another $400 billion to foreign nations again this year. About 39% of that will end up padding OPEC’s bottom line this year. Overall, our oil imports total more than a billion dollars per day, which, instead of being reinvested to grow our economy, it’s growing the economies of competing nations. Just think about what would happen if that money stayed right here at home.

The good news is that we are making some progress. Crude oil production in the U.S. continues to climb, which is slowly reducing the amount of oil that’s imported. That trend is projected to continue, which, if projections hold, would have the U.S. soon producing more oil than is imported for the first time since 1995. The following chart shows that we’re right about even today:

anImage

Source: Energy Information Administration.

As a nation, we have a lot of companies to thank for reversing this long trend. Continental Resources, Inc. (NYSE:CLR), which dubs itself as “America’s Oil Champion,” is among the leaders in pushing out oil imports. Over the past year the company has grown its oil equivalent production by 42%, which has vaulted it to becoming the top oil producer in the Bakken. Over the past three years, the company has grown its production by a compound annual rate of 38%. It has no plans to slow down, as this year the company and its partners will drill 944 new wells, which is up from the 847 drilled last year. Its plan is to triple its oil equivalent production by 2017.

Meanwhile, America’s natural gas leader and No. 2 producer, Chesapeake Energy Corporation (NYSE:CHK), has been investing heavily to grow its oil production. Last quarter, the company reported a 44% year-over-year spike in its oil production. The company continues to deliver excellent operational results, as it has revised its oil production estimates higher in three of the past four quarters.

Another company that deserves credit for helping push America’s oil production higher is Pioneer Natural Resources (NYSE:PXD). Already the third largest oil producer in Texas, Pioneer Natural Resources (NYSE:PXD) continues to see huge potential production growth opportunities in the future. In fact, the company believes its overall production will grow by a compound annual range of 13% to 18% through 2015. Overall, it sees total resource potential of about 9 billion barrels of oil equivalent, which is energy we won’t have to purchase from other countries.

While last year was another banner year for OPEC, these oil and gas companies are spending billions to invest in projects focused on the effort to produce more energy here at home. The good part about that is it means more dollars will stay here at home as well. That’s great for our economy, and great for investors.

The article You Handed OPEC a Trillion Dollars Again Last Year originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool has options on Chesapeake Energy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!