# Which U.S. oil companies are big on..... well, OIL ?



## Buckwheat (Dec 11, 2021)

It seems to be the nature of the oil business that oil, natural gas and natural gas liquids all come from the same well or the same neighbourhood; thus, most of the companies I look at have varying degrees of the three. I am a bit overgassified (I just invented that word) and I am keen to find a company which gets a high percentage of oil in its
inventories and not so much gas. Are there particular companies which are somewhat oilier than others?
Thanks for any suggestions.


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## Freedom2022 (Oct 14, 2021)

I am not 100% sure, I thought the big three: Chevron, Exxon and Royal Dutch Shell have a lot more in oil than gas.


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## zinfit (Mar 21, 2021)

I own Occidental and Diamonback . Not sure what the oil % is except they have strong position in the Perminian basin . That is a very large oil reserve. Diamonback has a big position in the Perminian and is one of the lowest cost producer of oil.


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## AltaRed (Jun 8, 2009)

Buckwheat said:


> It seems to be the nature of the oil business that oil, natural gas and natural gas liquids all come from the same well or the same neighbourhood; thus, most of the companies I look at have varying degrees of the three. I am a bit overgassified (I just invented that word) and I am keen to find a company which gets a high percentage of oil in its
> inventories and not so much gas. Are there particular companies which are somewhat oilier than others?
> Thanks for any suggestions.


All oil fields except oil sands contain varying percentages of natural gas (called associated gas - or solution gas) and gas liquids. Generally speaking, the lighter the oil (higher API gravity), the higher the percentage of associated gas and gas liquids. In addition to that, oil companies also produce natural gas from natural gas fields.

One can determine the relative mix by looking at oil company quarterly or annual report 'production volumes'. Spend a few hours (or days) checking that out the hard way in the absence of any google links that may have some of that information.

P.S. The best of the the Permian (highest reservoir quality) has mostly been drilled out. All new development will migrate to less prolific parts of the basin, meaning the economics of each step out will be progressively less. Hard to know how much running room is left. Ten years?Twenty?

Added later: Here is an Economist article with a chart that shows some companies oil/gas ratio. Appears Exxon is the least gassy of the majors...though most companies are increasing their gas weighting as the more 'green' fuel. Oil supermajors’ mega-bet on natural gas I think one would have to dig deeper for US companies with heavier oil weightings.


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## Buckwheat (Dec 11, 2021)

AltaRed said:


> Added later: Here is an Economist article with a chart that shows some companies oil/gas ratio. Appears Exxon is the least gassy of the majors...though most companies are increasing their gas weighting as the more 'green' fuel. Oil supermajors’ mega-bet on natural gas I think one would have to dig deeper for US companies with heavier oil weightings.


Thanks very much, AltaRed. I followed those links and it was useful reading.


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## zinfit (Mar 21, 2021)

Buckwheat said:


> Thanks very much, AltaRed. I followed those links and it was useful reading.


ConocoPhillips might fit this category and the former Encana [ its current name escapes me].


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## AltaRed (Jun 8, 2009)

One needs to focus on pure oil production plays to respond more directly to commodity prices. Those with refining and retail assets are not going to respond in the same way.


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## zinfit (Mar 21, 2021)

zinfit said:


> ConocoPhillips might fit this category and the former Encana [ its current name escapes me].


Conoco has a big chunk of the Monterey natural gas field. Could be the biggest North American natural gas resource. It has a strong position in gas and oil both. Its cost for oil production is under $30. Yes it has a modest amount of retail and refinery capacity but what large diversified large cap doesn't have that? Ovintiv[ formerly Encana] is a pure NG play. I like US companies with a solid footprint in both oil and gas. Conoco with a cost of 30$ WTI and selling for $83 a barrel means a pile of free cash flow. It has a big position in oil production in the North Sea, Texas and Alaska. Should mention globally they have 12 licensed LNG producing facilities .


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## Buckwheat (Dec 11, 2021)

COP was the first oil that I bought. I got the impression that they are a smart bunch, so I bought. Then I bought a little more.
BTW, they sold gas assets in Indonesia and used the money to fulfill an option to buy gas in Australia.

I had the impression that Ovintiv is high in debt.


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## zinfit (Mar 21, 2021)

Does Berkshire have a position in Conocco Phillips


Buckwheat said:


> COP was the first oil that I bought. I got the impression that they are a smart bunch, so I bought. Then I bought a little more.
> BTW, they sold gas assets in Indonesia and used the money to fulfill an option to buy gas in Australia.
> 
> I had the impression that Ovintiv is high in debt.


I don't own or follow Ovintiv so I don't know.


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