U.S. energy behemoth
) expects oil and natural gas output in North America to grow by
45% over the coming three decades.
EPL OIL&GAS INC (EPL): Free Stock Analysis
ENERPLUS CORP (ERF): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
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The U.S. shale formations, Canadian oil sands projects and the
Gulf of Mexico (GoM) are primarily responsible for the increased
yield. The easy accessibility and relatively economical
production have attracted several oil majors including ExxonMobil
to increase investments in North America.
North America imported 35% of its oil in 2010 and had flat
production for decades. But several technological progresses have
been made to tap oil and gas from shale-rock formations as well
as extracting oil or gas from oil sands and deep-water prospects
in North America. These efforts have changed the energy outlook
for the region.
On the other hand, the U.S. energy consumption, on the whole, is
likely to flatten eventually and fall by 5% during 2010 to 2040.
ExxonMobil forecasts that the region would become a net energy
exporter by around 2025, aided by the combination of rising
output and sluggish demand. The countries in the Asia Pacific
region are expected to be the main importers by 2040 as their
In November 2012, the monthly U.S. oil yield was more than 7
million barrels a day, for the first time in two decades. As per
the International Energy Agency, the U.S. is expected to beat
Saudi Arabia as a crude producer in the coming 10 years.
Further, it has been observed that growing dependence on natural
gas and renewable sources of energy such as wind will decrease
carbon emissions by 25% by 2040. During this time, the emissions
are also expected to slide to their lowest level since the 1970s.
ExxonMobil holds a Zacks Rank #3, which is equivalent to a
short-term Hold rating. However, there are other stocks in the
energy sector -
Range Resources Corporation
EPL Oil & Gas, Inc.
) - which carry a Zacks Rank #1 (Strong Buy) and are expected to
perform impressively over the next few months.