3 Key Regions for Energy Development: Exxon Mobil Corporation (XOM), Statoil ASA (ADR) (STO)

Colombia

Photo Credit: Daniel Lobo

Colombia has been on the radar of many investors because of the country’s commitment to growing its oil production. In 2006, production sat at 529,000 barrels per day. As of this past September, it was averaging 956,312 bpd, bringing within reach the government’s goal of reaching 1 million barrels per day.

Companies offering to help the country reach its goal include ConocoPhillips (NYSE:COP), ExxonMobil, and Royal Dutch Shell plc (ADR) (NYSE:RDS.A). Conoco was the most recent major to join the fray, announcing last month that it would partner with Canacol Energy to explore for shale oil in the Middle Magdalena Basin.

Exxon entered a similar deal in the same basin at the end of last year, signing on with a Sintana Energy subsidiary for a 70% stake in a 43,000-acre block there. Going back even further, the company signed a $50 million deal with Canacol last April, again in the same area.

Colombia is the third-largest oil producer in South America after Brazil and Venezuela, but is frequently considered a much easier country to do business in. The geology of the Middle Magdalena Basin, specifically the Cretaceous La Luna and Rosabalanca formations, is thought to mirror the Eagle Ford shale formation in the U.S. If production results come close to what we’re seeing in southeastern Texas, expect continued investment by the world’s oil companies going forward.

Foolish takeaway
It is clear that the natural gas story across the globe is different than it is at home. While American producers may think of our low prices and groan at the thought of another large discovery, worldwide they are rejoicing. Burning cleaner than oil, the commodity is increasingly being featured in power generation and as a transportation fuel.

The article 3 Key Regions for Energy Development originally appeared on Fool.com.

Fool contributor Aimee Duffy has no position in any stocks mentioned. Click here to see her holdings and a short bio. If you have the energy, check out what she’s keeping an eye on by following her on Twitter, where she goes by @TMFDuffy. The Motley Fool recommends Statoil (ADR).

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