Royal Dutch Shell plc (ADR) (RDS.A), ConocoPhillips (COP), Concho Resources Inc. (CXO): Could This Tiny New Mexico County Rewrite Fracking Rules?

When it comes to natural gas extraction in New Mexico, no company even comes close to ConocoPhillips (NYSE:COP). Including the company’s Burlington Resources subsidiary, ConocoPhillips (NYSE:COP) produced an average of 1.2 billion cubic feet of natural gas per day in 2012.  The next closest company produced just one-sixth that amount.

As far as oil is concerned, COG Operating, a subsidiary of Concho Resources Inc. (NYSE:CXO), is the runaway leader in the state. During 2012, the company produced roughly 40,800 barrels of oil per day. The next closest producer clocked in with less than half that figure .

Obviously, these two companies—along with Royal Dutch Shell plc (ADR) (NYSE:RDS.A) —would be the most affected should both Mora succeed in its ban, and other communities decide to follow its lead.

Right now, it seems like a long-shot that this scenario might play out. The Permian Basin only occupies the southeastern corner of the state, and many communities welcome the opportunity for jobs in the current economy. But that doesn’t mean this isn’t an issue investors should keep a watchful eye on.

If you’re looking for another way to profit from natural gas that’s less prone to such legal battles, there’s one home run investing opportunity has been slipping under Wall Street’s radar for months.

The article Could This Tiny New Mexico County Rewrite Fracking Rules? originally appeared on Fool.com and is written by Brian Stoffel.

Fool contributor Brian Stoffel has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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