Major Oil Companies Hit Jackpot in Canada

by Christopher Freeburn | November 7, 2012 10:14 am

[1]The discovery of more large oil and gas reserves in Alberta, Canada, is likely to benefit a number of global oil industry players[2].

A report form the Alberta Energy Resources Conservation Board and Alberta Geological Society found that the Duvernay[3], 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[4]), Talisman (NYSE:TLM[5]) and Encana (NYSE:ECA[6]). Other players are moving quickly to join them.

In October, Exxon Mobil (NYSE:XOM[7]) 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[8].

Shares of Chevron and Exxon fell more than 2% in Wednesday morning trading, while Encana and Talisman shares dipped more than 1%.

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