Like moths to a flame, drillers are dialed in on a new potentially oil-rich formation named the Tuscaloosa Marine shale.
Attempts to tap the Tuscaloosa have failed in the past, but with new drilling techniques, this time around may be different. And with the low cost of land, the high price of oil, and the estimated 7 billion barrels of oil in the region, many energy companies consider the project a risk worth taking.
Tapping the Tuscaloosa
Through a joint venture, Denbury Resources
The bottom line
In investing parlance, the Tuscaloosa Marine shale could be considered the penny stock of shale plays. The potential is great, but so is the risk. Be on the lookout for positive developments in this region, and look to invest in companies that will benefit.
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Fool contributor Adam J. Crawford does not own any shares in any company mentioned in this article. The Motley Fool owns shares of Denbury Resources and Devon Energy. 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.