U.S. Markets closed
  • S&P Futures

    -22.50 (-0.66%)
  • Dow Futures

    -174.00 (-0.62%)
  • Nasdaq Futures

    -71.25 (-0.61%)
  • Russell 2000 Futures

    -9.70 (-0.61%)
  • Crude Oil

    -0.24 (-0.60%)
  • Gold

    -13.90 (-0.72%)
  • Silver

    -0.40 (-1.59%)

    -0.0021 (-0.1777%)
  • 10-Yr Bond

    +0.0190 (+2.38%)
  • Vix

    -0.70 (-2.39%)

    -0.0014 (-0.1037%)

    +0.1330 (+0.1272%)

    +1,741.10 (+15.75%)
  • CMC Crypto 200

    +11.56 (+4.72%)
  • FTSE 100

    -112.72 (-1.91%)
  • Nikkei 225

    -82.56 (-0.35%)

Ecopetrol (EC) Eyes 100 Permian Well Drillings by 2021-End

Zacks Equity Research
·2 mins read

Ecopetrol S.A. EC intends to drill 100 wells in the prolific Permian Basin — one of the most lucrative shale plays in the United States — by the end of next year, per Reuters. Felipe Bayon, the CEO of the Colombia-based energy company, stated in the virtual Asia Pacific Petroleum Conference that production in the basin will likely rise on the back of improving global crude prices.

Notably, Ecopetrol drilled 22 wells from last November to this June. Due to the coronavirus pandemic, production from the basin decreased. When WTI Crude price plummeted to historic lows in late-April, several upstream companies operating in the basin had to curtail production. However, with recovering prices, companies like EOG Resources, Inc. EOG, ConocoPhillips COP and others started resuming output.

Ecopetrol intends to drill 22 more wells this year. Importantly, the company created a strategic alliance with Occidental Petroleum Corporation OXY last November to develop unconventional reservoirs in thousands of acres of the Permian Basin.

Ecopetrol managed to avoid shutdowns amid the pandemic as demand from China-based refiners drew significant Colombian crude supply. The growing market of Asia is a major importer of Ecopetrol’s crude oil. The company is trying to capture more demand through expanding sales to South Korea and India.

Moreover, Felipe Bayon anticipates Colombia’s diesel and gasoline demand to recover to pre-pandemic levels by 2020-end or early-2021. However, jet fuel demand is expected to take more time to recover.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ConocoPhillips (COP) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Ecopetrol S.A. (EC) : Free Stock Analysis Report
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research