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Exxon (XOM) Files Proposition to Pursue Columbia Fracking Project

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Exxon Mobil Corporation (XOM - Free Report) submitted a proposition to the National Hydrocarbons Agency (“ANH”) of Columbia to undertake a fracking pilot project in the country known as Platero.

Per Reuters, Exxon proposed to conduct fracking investigations in the Valle Medio del Magdalena basin of Columbia. Once approved, Exxon will be the second company after fellow integrated major Ecopetrol S.A. (EC - Free Report) to initiate a fracking pilot project in the country.

In November 2020, Ecopetrol, Columbia’s majority state-owned oil and gas company, acquired a pilot contract for hydraulic fracturing and committed to contribute a minimum of $76 million to execute the exploratory activities at the Kalé area in the Magdalena basin.

Notably, Colombia is the third-largest oil producer in South America and its economy is heavily dependent on crude exports. However, Columbia had to rely on shale and hydraulic fracturing in order to maintain its reserve base despite strong opposition from local communities as environmental activists cautioned it might harm the environment and threaten communities.

The fracking pilot projects are designed to obtain adequate scientific information to make decisions regarding potential growth of non-conventional energy deposits. Notably, the proposition aligns with the Colombia authorities’ ambition to promote fracking and other non-conventional hydrocarbon sources as they are important for Columbia’s economy and energy self-sufficiency.

Hence, Colombia continues to make advances in discovering and creating possibilities of extracting oil and gas from the non-conventional fields.

Company Profile & Price Performance

Headquartered in Irving, TX, Exxon is one of the leading integrated energy companies in the world.

Notably, the company’s shares have outperformed the industry in the past six months. The stock has gained 56% compared with the industry’s 45.6% growth.

 

 

Zacks Rank & Other Stocks to Consider

Exxon currently flaunts a Zack Rank #1 (Strong Buy).

Some other top-ranked players in the energy space are Royal Dutch Shell Plc , currently sporting a Zacks Rank #1, and China Petroleum & Chemical Corporation , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shell’s earnings for 2021 are expected to increase 19.9% year over year.

China Petroleum’s earnings for 2021 are expected to rise 25.6% year over year.

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