Exxon Mobil Corporation (XOM), Continental Resources, Inc. (CLR): Why Big Oil Is Staying Offshore for Growth

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Even ConocoPhillips (NYSE:COP), which is one of the largest of the independents, hasn’t yet shed its offshore assets because that’s where the meaningful long-term production growth can be delivered. It is true that ConocoPhillips (NYSE:COP) expects double-digit production growth from its Eagle Ford and Bakken positions over the next few years. However, the company is still investing heavily in offshore areas such as the North Sea, as well as exploring the deep waters off of Angola and in the Gulf of Mexico to drive longer-term production growth. Recent discoveries in those plays suggest that its plan to invest offshore will pay off big time down the road.

The shale plays really have changed the game for U.S. oil and gas production. However, shale plays simply are not large enough to drive production growth for big oil companies because they need to grow off of a much larger base. This is why big oil, for the most part, is looking offshore to deliver production growth.

The article Why Big Oil Is Staying Offshore for Growth originally appeared on Fool.com is written by Matthew DiLallo.

Fool contributor Matt DiLallo owns shares of ConocoPhillips. The Motley Fool recommends Chevron.

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