The Gulf of Mexico accounts for a significant portion of crude oil production in the United States. With the projection that U.S. Gulf Coast crude oil export could hit a record high mark, the prospects of energy players operating in the region appear bright. Companies that may gain from the development are BP plc BP, Hess Corporation HES and Shell plc SHEL.
Massive Gulf Coast Oil Export
Export of crude oil from the U.S. Gulf Coast will possibly touch a record of 3.3 million barrels per day (bpd) in the June quarter, per Rystad Energy analyst. This is owing to the massive demand for U.S. oil from Europe as the European Union decided to ban Russian oil import by sea by the end of this year.
The huge crude export is supported by the bold decision of the United States to release 180 million barrels of oil from the Strategic Petroleum Reserve of the country, thereby offsetting the loss of Russian supply. Strong possibilities exist for crude export from the United States to grow further as Washington could enact so-called secondary sanctions with backing from Europe. By secondary sanctions, the United States could target those nations still doing business with Russia.
Which Energy Firms Will Gain?
Upstream players having exploration and production activities in the Gulf Coast will possibly gain. We have selected three key energy players operating in the U.S. Gulf of Mexico. All the companies carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the deepwater U.S. Gulf, BP plc is among the leading producers of oil. The major operating hubs where BP is continuing its investment and exploration activities are Atlantis, Mad Dog, Na Kika and Thunder Horse.
In the past 60 days, BP has witnessed upward earnings estimate revisions for 2022.
With the discovery of oil at the Baldpate field more than 25 years ago, Hess Corporation is among the active exploration and production players in the Gulf of Mexico (Offshore United States). In the first quarter of this year, the net production of Hess from the Gulf of Mexico was 30,000 barrels of oil equivalent per day.
For 2022, Hess is likely to witness earnings growth of more than 309%.
In the U.S. Gulf of Mexico, Shell is operating currently nine deep water production hubs. Two recent project startups in the area of Shell are Stones deepwater project and Appomattox, a deepwater oil and gas project.
For 2022, Shell is likely to witness earnings growth of more than 104%.
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BP p.l.c. (BP) : Free Stock Analysis Report
Hess Corporation (HES) : Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
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