Bill Martin, editor of the FindProfit newsletter - Expert’s commentary regarding a new deep-water oil source in the Gulf of Mexico

Bill Martin, editor of the FindProfit newsletter, highlights big news from the energy arena. Read this featured expert’s commentary regarding a new deep-water oil source in the Gulf of Mexico. Also, find out how the previously untapped region could benefit the country's total reserves and learn about several companies that stand to benefit. QUICK HIT ALERT from September 5 The big news in the energy sector today is centered on a new deep-water oil source in the Gulf of Mexico. Chevron (CVX) and partners, Devon Energy (DVN) and Statoil (STO) announced that tests in a previously untapped region of the Gulf of Mexico could ultimately yield between 3 billion and 15 billion barrels of oil and gas, significantly upping the country's total reserves. It is estimated that developing the wells in this deep-water region, which require boring through several miles of rock on the floor of the Gulf of Mexico, could cost several billion dollars, including the costs of platforms and pipelines. Bottom Line: While this news is certainly positive for the companies mentioned above and producers with exposure to this wide swath of potentially oil-rich territory in the Gulf of Mexico, it is also good news for companies like Pride International (PDE) and Lone Star Technologies (LSS), as increased activity will up the demand for rigs and tubing in a market that has seen the number of deepwater rigs in action shrink in recent years (with rigs moving to offshore markets). Content Courtesy: Zacks Investment Research | Blog Home| VitalStocks Home