One of the most symbolic oil finds in United States history is being tapped once again, as private investors attempt to exert more oil from Spindletop in Beaumont, Texas. Another find in this legendary salt formation would be symbolic, as the United States again strikes record oil production in what is becoming our second oil and gas boom.
Spindletop is not the only aged well that's being revisited by oil companies. With improved technology, the Permian Basin, an oil play being drilled since the 1920s, is again finding new suitors that are applying horizontal drilling and CO2 tertiary recovery techniques to extract more hydrocarbons from below its surface. Advantageous companies like ConocoPhillips (NYSE:COP) and Denbury Resources (NYSE:DNR) cheaply acquired the rights to these aging fields, increasing both oil production and adding years of drilling inventory to their books.
This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.