Market Overview

Exxon's Owowo Find Could Satiate World's Oil Needs For Over A Week

Exxon's Owowo Find Could Satiate World's Oil Needs For Over A Week

Exxon Mobil Corporation (NYSE: XOM) may have struck liquid gold as the company announced a significant oil discovery near the coast of Nigeria.

Exxon said that the Owowo field located in offshore Nigeria has a potential recoverable resource of 500 million to 1 billion barrels of oil.

How Big Is It Really?

Assuming that all of the oil can be extracted efficiently by the end of the decade, Exxon's find could satisfy the entire planet's oil needs for the better part of a week, with estimates ranging between five and 10 days.

Bloomberg, citing data from the International Energy Agency, reported that world oil consumption will total 100.5 million barrels a day in 2020. At the high end of Exxon's estimate, the one oil field near Nigera alone could fuel the entire planet's oil needs for more than an entire week.

Don't Get Too Excited Yet

Despite the size of Exxon's oil discovery it is important to note that Exxon is a minority owner of the oil field and owns a 27 percent stake.

In addition, Pavel Molchanov, an analyst at Raymond James, suggested that a 500-million to 1-billion-barrel discovery is in reality "fairly normal." Moreover, the analyst pointed out that Nigera's geo-political situation is plagued with militant groups that are known to sabotage oil properties.

Latest Ratings for XOM

Mar 2019Cowen & Co.DowngradesOutperformMarket Perform
Feb 2019MacquarieUpgradesUnderperformOutperform
Dec 2018Societe GeneraleMaintainsBuyBuy

View More Analyst Ratings for XOM
View the Latest Analyst Ratings

Posted-In: crudeAnalyst Color News Emerging Markets Commodities Markets Analyst Ratings Trading Ideas Best of Benzinga


Related Articles (XOM)

View Comments and Join the Discussion!

Latest Ratings

VREXNorthland SecuritiesInitiates Coverage On42.0
EAMorgan StanleyMaintains88.0
ELMorgan StanleyMaintains178.0
SPLKMorgan StanleyMaintains140.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Trader Essentials
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Stock Index Futures Lower

Technical Alert: Apple Lower