The Biggest Reason to Be Wary of Energy XXI's Future

Energy XXI (NASDAQ: EXXI  ) is one of those oil and gas producers that has flown under many investors' radars over the past couple of years because, frankly, it doesn't deal with the more popular topic in the oil production space today: shale drilling. Funny thing is, it has become the largest producer of oil and gas in the near-shore region of the Gulf of Mexico because it has adapted some of those shale drilling techniques and applied them to the offshore environment. While the company's fundamentals all point to what would be considered a top choice in the independent oil and gas space, there is one thing you need to keep in mind with this company: the high costs of an offshore spill.

With BP (NYSE: BP  ) spending almost $3,000 per barrel for just the cleanup aspect of the 2010 Macondo well blowout -- a price that doesn't even include the trust fund or the potential Clean Water Act fines -- the costs for a potential spill are extremely high. Find out more in the following video about why potential investors in Energy XXI need to keep this possibility in mind.

America's $600 billion energy problem means invest in these three stocks today
A dark specter is looming that is ready to stop America's energy boom right in its tracks, and no one is talking about it. This one critical element could cost us over $600 billion, but every day we wait, that number grows and grows. The U.S. government thinks investment in this sector is so important, even the Internal Revenue Service will give you a free pass if you invest in this select group of stocks. Our analysts at The Motley Fool have combed over this special class of stocks, and we have identified three that could make you rich! Find out the names of these IRS-gift-wrapped stocks in our special report "3 Stocks The IRS Is Begging You to Buy." Simply click here, and we'll give you free access to this valuable investing resource. 


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  • Report this Comment On June 19, 2014, at 1:28 PM, birge1 wrote:

    'bama killed gulf drilling for 2 yrs before a federal court forced him to back off and issue permits aqain. every other offshore oil co besides BP has operated responsibly in the gulf for 50 yrs. govt should have kicked BP off the lease which the govt controls, given to another reputable driller, and gotten the field producing "normally" the 4,000 bbls/day rate it flowed after exploding. that's a huge well in any oil field ..... and other wells there could flow 4,000 bbls/day also.... when this country is desparate for oil. it's a "no-brainer" in both senses of the word--it's the right decision and also shows govt has no brains !

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