The Permian Basin is the largest oilfield in the United States. Since the first well was drilled in 1920, over 30 billion barrels of oil have been recovered, with at least 20 billion barrels remaining. And something big just happened in the oil industry down there.
Shell just sold all of their oilfield land to ConocoPhillips in an effort to go more green!
The 225,000 acres of land was acquired for $9.5 billion and makes ConocoPhillips one of the largest oil miners in the world. This land is expected to produce 200,000 barrels of oil, per day… With such a strong move towards more oil production for ConocoPhillips with such an opposite move in the other direction for Shell, it leaves many questioning who made the right decision. And the answer is: they both did. Shell is able to use this new cash injection to fund greener projects that will pay off over time while Conoco will be able to reap more profit and free cash flow today. However, the investment decision for both of them is very different. If you want to get involved in green energy or a high dividend stock play, the details below are crucial to know.