Tuesday, September 05, 2006

Oil's Well in the Markets Today

Today was another strong day for the markets. The big news of the day came from one of my long-term holdings, Chevron (CVX).

Chevron, along with its partners, Devon Energy (DVN) and Norway-based Statoil (STO), made a monumental oil discovery in the Gulf of Mexico. The discovery is huge. Currently, it is speculated that it could lead to as large as a 50% boost in U.S. oil reserves. Chevron owns a 50% stake in the new find, while its partners each have a 25% share.

Chevron and Statoil tacked on just around 2.3%, while Devon Energy ran up more than 12%. Deep sea drillers such as Transocean (RIG) also moved up on this discovery... the oil was found more than 5 miles deep!

Here is the Chevron Press Release.

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