This segment is from Tuesday's edition of 'Digging for Value', in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.

There's a reason why Texas is the number one oil and natural gas producing state in the Union: shale. BHP Billiton (NYSE:BHP) realized this in 2011, when it purchased Petrohawk from Floyd Wilson, now Founder and CEO of Halcon Resources (NYSE:HK). With prime real estate in the Eagle Ford and Permian regions, BHP is prepared to dedicate 67% of its petroleum-focused budget to shale growth. It has also decided to keep shale and conventional energy units separate, much like ExxonMobil (NYSE:XOM) decided to do with XTO Energy. To find out what else it is focusing on to catch up to EOG Resources (NYSE:EOG), tune in to the video below.

Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool owns shares of EOG Resources. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.