Three oil stocks to watch as drilling activity soars

Shale oil production has increased nearly seven-fold from 2010 to 2011, from an average of just less than 12,000 barrels a day to about 83,400 barrels a day North America oil drilling is on the rise, and many oil companies - and their stocks - are following. The Oil and Gas Journal reported for the week ended May 18 there were 12% more oil and gas drilling rigs active in the United States from the same period a year ago, totaling 1,986. Just look at the Texas Eagle Ford shale region, the largest U.S. shale oil deposit, which is booming more than expected. Shale oil production has increased nearly seven-fold from 2010 to 2011, from an average of just less than 12,000 barrels a day to about 83,400 barrels a day. And that could explode to 500,000 barrels a day by the end of 2012, according to Valero Energy Corp.

Stock Forum) CEO Bill Klesse, with output expected to double to one million barrels a day "in the next few years." Eagle Ford isn't the only area exploding with activity. More than 475 rigs are working across the Permian in West Texas and southeastern New Mexico. Those areas are already producing close to a million barrels a day. By decade's end, that daily total could double to nearly the total oil output of Nigeria. Continue reading this article

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