Santa Claus Could Be Sitting on Billions of Barrels of Oil

This segment is from Thursday'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.

Source: Wikipedia

As colossal, integrated oil companies like Royal Dutch Shell  (NYSE: RDS-A  )  begin to run out of options to meaningfully increase their reserve bases through conventional means, new, more controversial regions must be explored. For several years now, Shell had hoped that the Alaskan Arctic would their ticket to growth that shareholders would appreciate. Unfortunately, it hasn't been able to get its act together, and over $4 billion has been spent on wasted efforts. 

For peers like ExxonMobil  (NYSE: XOM  )  and Statoil  (NYSE: STO  ) , the Arctic Circle is the future, but they are both reaching outside of the United States. Hopefully, for their sake, the Kara and Barents Sea will be more friendly that the Chukchi has been to Shell. For more on these companies' plans, check out the short video below.

Greater oil production is tough for OPEC to swallow but not for investors in this company

Offshore rigs capable of drilling in areas like the Arctic Circle can be some of the most expensive around. One company that Warren Buffett is so confident in that he just loaded up on 8.8 million shares is a primary supplier of most equipment that constitutes these rigs. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable LANDSLIDE of profits!

Read/Post Comments (0) | Recommend This Article (1)

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: 2807549, ~/Articles/ArticleHandler.aspx, 8/28/2015 9:26:12 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...

Taylor Muckerman

Taylor is an Associate GM in our Fool International operations. Prior to that he covered all things Energy + Materials as an analyst. Over the years, he has built an investing skill set to rely on when evaluating companies inside and out. While at the Fool, he has made appearances on CNBC and Fox Business. In addition, he completed his MBA at the University of Maryland and will sit for the Level II CFA Exam.

Today's Market

updated 12 hours ago Sponsored by:
DOW 16,654.77 369.26 0.00%
S&P 500 1,987.66 47.15 0.00%
NASD 4,812.71 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/27/2015 4:00 PM
RDS-A $51.94 Up +2.45 +0.00%
Royal Dutch Shell… CAPS Rating: ****
STO $15.15 Up +0.70 +0.00%
Statoil (ADR) CAPS Rating: ****
XOM $74.85 Up +2.35 +0.00%
ExxonMobil Corp CAPS Rating: ****