What Makes a Good Shale Play

Large discrepancies exist within oil and gas shale plays, making it difficult for energy companies to locate and produce in "sweet spots" where profit margins increase significantly. The Eagle Ford, for example, has a large spectrum of break-even prices; the play consists of a northern layer heavy in crude oil, a middle section consisting of natural gas liquids, and a southern section heavy with natural gas.

Liquid-heavy shale plays tend to be more profitable and, conversely, more competitive. Therefore it's vital for investors to look beneath the surface and understand the type of hydrocarbons being produced because it has a dramatic effect on profits. 

With oil prices once again making a push toward the century mark, its time to focus on winners in the upstream space. If you're on the lookout for some currently intriguing energy plays, check out The Motley Fool's "3 Stocks for $100 Oil." For FREE access to this special report, simply click here now.

 


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2503025, ~/Articles/ArticleHandler.aspx, 12/21/2014 6:30:42 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement