Devon Energy Corp (DVN), Exxon Mobil Corporation (XOM): The Next Great American Energy Play

Page 1 of 2

In sports, people love to hear about the next big thing. That sense of potential makes us tune in to see what all the chatter is about. So in the spirit of seeking future greats, let’s look at an unconventional energy play in the U.S. that has some industry experts proclaiming it as the next great American energy play.

Devon Energy Corp(NYSE:DVN)

Sizing it up
Using the same sports analogy, we need a standard to compare with. Much as basketball fans use the term “the next Jordan” as the bar of excellence, oil companies use two unconventional shale plays as the standard bearers for the industry: the Eagle Ford and the Bakken. While there’s some debate as to which play is better than the other, it’s not too much of a stretch to claim that they’re head and shoulders above the other areas.

Although both energy plays are different in many ways, they both have one thing in common: a strong liquids portfolio. So when we talk about the next great American energy play, we’re going to make sure it isn’t a gas-heavy giant like the Marcellus shale. The Bakken has a distinct advantage in the type of crude it produces. Continental Resources, Inc. (NYSE:CLR)‘ wells in the Bakken are producing crude with an average API gravity of 42 degrees, a sulfur content about one-third less than other U.S. crudes, and one of the highest gasoline percentages of any crude in the country.

The Eagle Ford’s advantage comes from its location. Hugging the Rio Grande just before it spills into the Gulf of Mexico, the basin has the advantage of being right next to the heart of America’s oil and gas refining. Being so close to this region, which has been in the energy business for more than a century, also gives it a robust pipeline infrastructure to move product to its final destination.

So if you’re scoring at home, we want a liquids-heavy play with high-quality crude and immediate access to pipelines and refineries.

So what’s the SCOOP with this new energy play?

Source: U.S. Geological Survey

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
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

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

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!