U.S. proved oil and natural gas reserve has posted a significant increase recently after years of decline thanks to the advent of newer technologies like horizontal drilling and hydraulic fracturing. Proved reserves for crude oil registered an increase of 15% in 2011, while proved reserves of natural gas registered an increase of around 10%. This huge increase in proved reserves only strengthens the production potential of the country in the coming years, and ConocoPhillips (NYSE:COP) does not want to miss out on the opportunity. The company is doing away with its less profitable assets to invest in the more profitable unconventional shale plays. ConocoPhillips has planned to sell off $13.5 billion of assets in 2013, and had already sold $3.8 billion by the end of June through asset sales.
Foolish bottom line
ConocoPhillips is setting up the base to tap the huge opportunity that the U.S. offers to the oil and natural gas companies. ConocoPhillips’ strategy to shed less profitable assets to concentrate on the shale plays is expected to pay dividends in the future as new sources of reserves are discovered in the U.S. The stock is worth keeping an eye on.
The article ConocoPhillips Moves a Step Closer to Its Strategic Goal originally appeared on Fool.com and is written by Satarupa Bose.
Satarupa Bose has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
Satarupa is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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