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.


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