Montana and North Dakota Have 3B to 4.3B Barrels of Oil

Posted by Louis Navellier on 6/30/08 1:16 pm

The Bakken Formation has received glowing press recently. Some sources are calling it the most significant opportunity for U.S. energy independence.  Is this also a significant investment opportunity?

Answer: Yes.  This is a big deal.  The oil field is found in Montana and North Dakota and it contains light, sweet crude oil that is trapped in a shale rock formation only about 150 feet wide, so horizontal drilling is necessary to exploit this resource.  According to the U.S. Geological Survey (USGS), there are 3 to 4.3 billion barrels of recoverable crude oil in the Bakken Formation, which makes it the largest land-based oil field in the lower 48 states.  This will naturally help oil service companies and is very exciting for U.S. energy independence. 

There are five publicly traded companies with interests in the Bakken Formation, but only one passed my stringent stock selection process: XTO Energy. (XTO); 1-yr Chart; Profile.  XTO is a top-10 holding in our Power Dividend portfolio.

I should also add that there are also some small Vancouver-based oil companies trying to exploit the Bakken Formation by drilling or acquiring leases in Saskatchewan, Canada.  I would rather not mention these companies, since they are saying the USGS found 400 billion barrels, which is a blatant lie and 100 times what the USGS has actually said.  Always be careful of small Canadian oil companies without proven reserves and poor financials.

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