Must-know: US oil industry reaction to the loosening export ban (Part 8 of 11)
Marathon Oil Corp.
Marathon Oil Corp. (MRO) is one of the leading exploration and production names in the oil and gas industry. The company operates primarily out of the Eagle Ford Shale and the Bakken Shale. In the Eagle Ford, the company has ~225,000 acres.
Eagle Ford is one of the top focus areas for MRO in 2014. The company plans to allocate $2.3 billion, with plans to drill 250–260 net wells (385–405 gross—88% operated) in 2014.
MRO stands to be one of the top beneficiaries of the exporting crude. MRO has rallied for the cause along with other Eagle Ford producers. The company has emphasized that, “Lifting today’s crude oil exports restrictions would help strengthen the U.S. economy, foster job creation, and promote the efficient development of the domestic energy sector.”
MRO has pushed for crude exports so that the Bakken and Eagle Ford light oil could find a more enthusiastic and a higher paying global market. With U.S. producers allowed to sell crude on the global markets, domestic refineries could import more inexpensive but heavier crude for which they are better suited to process. MRO calls this a “win-win for the U.S. economy.”
“More production—in the Bakken and Eagle Ford—means more exports, less imports, greater energy security, and greater economic security,” said one of the top officials of MRO.
In light of the geopolitical events, which have made U.S. oil more attractive, the loosening of the export ban was a positive for several producers like MRO, who believe that allowing for crude exports could have “profound effect” in the global markets where there “need for supply diversity.”
MRO noted that
“We—as a nation—can and should find a way to play a role in increasing that diversity by finding new ways to bring American crude oil to global markets.”
Note that MRO is a part of the Energy Select Sector SPDR Fund (XLE), iShares U.S. Energy ETF (IYE), SPDR S&P Oil & Gas Exploration & Production ETF (XOP), and Vanguard Energy ETF (VDE).
Continue reading the next section in this series to learn about one more oil producer who is bullish on crude exports.
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