The discovery of more large oil and gas reserves in Alberta, Canada, is likely to benefit a number of global oil industry players.
A report form the Alberta Energy Resources Conservation Board and Alberta Geological Society found that the Duvernay, Montney and Muskwa shale formations in the Western Canadian province may contain as much as 423.6 billion barrels of oil and 3.324 trillion cubic feet of natural gas, Upstream noted.
A number of major oil companies have begun exploring the Duvernay and Montney shale deposits, including Chevron (NYSE:CVX), Talisman (NYSE:TLM) and Encana (NYSE:ECA). Other players are moving quickly to join them.
In October, Exxon Mobil (NYSE:XOM) paid $2.6 billion to acquire Celtic Exploration, which holds rights to Duvernay and Montney reserves. Exxon has recently announced it intention to withdraw from a major oilfield development project in Iraq.
Shares of Chevron and Exxon fell more than 2% in Wednesday morning trading, while Encana and Talisman shares dipped more than 1%.