BHP Billiton Gets Fracking Shale Oil Assets

BHP Billiton (NYSE:BHP) plans to significantly ramp up its production of oil equivalents from its shale and oil (NYSEARCA:USO) assets located in the U.S. To do this, the company plans to invest $4.5 billion this financial year according to Michael Yeager, head of the company’s petroleum division. Spending is expected to rise to $6 billion in 2015, and about $6.5 billion by 2020.

These investments should yield about 90 million barrels of oil equivalent or about 250,000 BOE a day this year. That number rises to 600,000 BOE in 2015 and then about 1 million by 2020. This production would utilize the hydraulic fracturing, or ‘fracking’, technology for extracting hydrocarbons from shale deposits.

Yeager conceded that fracking technology had caused worldwide concern, particularly regarding its environmental impact. However, he projected it was important to make U.S. energy-secure, and that shale would account for half of the country’s gas supply by 2020.

Here’s how BHP and other oil services companies are trading:

  • BHP Billiton Ltd. (NYSE:BHP): The shares recently traded at $75.98, down $1.88, or 2.41%. Its market capitalization is $202.20 billion. They have traded in a 52-week range of $62.54 to $104.59. Volume today was 962,655 shares versus a 3-month average volume of 4,519,920 shares. The company’s trailing P/E is 8.90, while trailing earnings are $8.54 per share. The company pays a dividend of $2.20 per share for a dividend yield of 2.80%. About the company: BHP Billiton Limited is an international resources company. The Company’s principal business lines are mineral exploration and production, including coal, iron ore, gold, titanium, ferroalloys, nickel and copper concentrate, as well as petroleum exploration, production, and refining. Get the most recent company news and stock data here >>
  • Halliburton Company (NYSE:HAL): The shares recently traded at $38.27, down $0.32, or 0.83%. Its market capitalization is $35.21 billion. They have traded in a 52-week range of $27.21 to $57.77. Volume today was 2,903,548 shares versus a 3-month average volume of 19,027,400 shares. The company’s trailing P/E is 13.88, while trailing earnings are $2.76 per share. The company pays a dividend of $0.36 per share for a dividend yield of 0.90%. About the company: Halliburton Company provides energy services and engineering and construction services, as well as manufactures products for the energy industry. The Company offers services and products and integrated solutions to customers in the exploration, development, and production of oil and natural gas. Get the most recent company news and stock data here >>
  • Schlumberger Limited (NYSE:SLB): The shares recently traded at $75.61, down $0.93, or 1.22%. Its market capitalization is $101.48 billion. They have traded in a 52-week range of $54.79 to $95.64. Volume today was 1,626,503 shares versus a 3-month average volume of 12,229,200 shares. The company’s trailing P/E is 22.36, while trailing earnings are $3.38 per share. The company pays a dividend of $1.00 per share for a dividend yield of 1.30%. About the company: Schlumberger Limited is an oil services company. The Company, through its subsidiaries, provides a wide range of services, including technology, project management and information solutions to the international petroleum industry as well as advanced acquisition and data processing surveys. Get the most recent company news and stock data here >>
  • Baker Hughes Incorporated (NYSE:BHI): The shares recently traded at $57.13, down $1.07, or 1.84%. Its market capitalization is $24.94 billion. They have traded in a 52-week range of $41.91 to $81.00. Volume today was 719,398 shares versus a 3-month average volume of 6,881,000 shares. The company’s trailing P/E is 14.19, while trailing earnings are $4.03 per share. The company pays a dividend of $0.60 per share for a dividend yield of 1.00%. About the company: Baker Hughes Incorporated supplies reservoir-centered products, services, and systems to the worldwide oil and gas industry. The Company provides products and services for oil and gas exploration, drilling, completion, and production. Baker Hughes also manufactures and markets a variety of roller cutter bits and fixed cutter diamond bits. Get the most recent company news and stock data here >>

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