Hydraulic fracturing has really changed the game with respect to America’s energy production. A variety of energy stocks continue to use the new advanced drilling technique to delve deeper into new shale formations to produce record amounts of crude oil and natural gas.
The drilling technique is also having its way some older and legacy fields in here the U.S. as well. One of the prime examples is the rich Permian Basin, which is becoming a goldmine for energy stocks.
The vast field — which encompass 86,000 sq. miles throughout West Texas and into New Mexico — is actually several distinct geographic strata staked up on top of each other. Think of a big, seven-layer wedding cake. That makes it possible for energy stocks operating in the Permian to tap multiple shale layers from just one well pad
Based on this fact, studies conducted by the Energy Information Administration (EIA) estimate that the Permian contains 29% of the nation’s future reserve growth. And those reserves are pretty huge.
According to the last USGS assessment of the region, the Permian holds roughly 41 trillion (Tcf) of undiscovered unconventional natural gas, 1.3 billion barrels of shale oil and 1 billion barrels of natural gas liquids (NGLs).
Those supreme conventional and unconventional assets have the EIA predicting that production in the Permian will grow more than any other region in the United States through next year. More than the Bakken. More than the Marcellus. And even more than the Eagle Ford.
Which is why the energy stocks to buy now are the ones tapping the prolific Permian. Here are three of the best.