• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 11 hours End of EV Subsidies?
  • 11 hours Maersk's COO statment.
  • 1 hour Permian Suicide
  • 7 hours GOODBYE FOREIGN OIL DEPENDENCE!!
  • 6 hours Asian stocks down
  • 17 hours Citi cuts Apple's price target
  • 13 hours Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 35 mins USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 14 hours Regular Gas dropped to $2.21 per gallon today
  • 7 hours Price Decline in Chinese Solar Panels
  • 5 hours IT IS FINISHED. OPEC Victorious
  • 9 hours Trump accuses Google Of Hiding 'Fair Media' Coverage of him
James Stafford

James Stafford

James Stafford is the Editor of Oilprice.com

More Info

Bigger Profits from Smaller Players

Forget about Big Oil this year and focus your attention on those smaller US-shale-focused players because they have begun to outperform the big boys and we expect much better returns for investors. So if you want bigger returns this year, you have to look smaller. And we can find you a handful of smaller players focused on US shale set up to earn bigger profits for investors than the supermajors. If you need more convincing, check out the second-quarter financials coming out now and compare them with the supermajors. They paint a very interesting story.

Why are the smaller players outperforming the giants?

•    They are spending on high-margin drilling from US crude wells
•    They are focused on the US, where shale growth is clear, either staying put to the US altogether, and sticking to shale, or having divested their overseas and offshore assets to raise cash
•    The transport glut has eased a bit, leading to a 16% rise in the WTI, while London-traded Brent has fallen about 2.2% (this is wrong-footing the supermajors)
•    They aren’t “integrated” like the supermajors, so they’re not taking a hit on poor-performing sectors like refining

Who to Watch

EOG Resources Inc. (EOG)

This is THE biggest player in the Eagle Ford shale in Texas, and its profits are expected to triple this year. We’re looking at over $1.9…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




Oilprice - The No. 1 Source for Oil & Energy News
-->