EOG Resources, the independent oil and natural gas producer that was formerly a unit of Enron, touted the Wolfcamp shale in the Permian Basin as a potential major oil discovery. EOG CEO Mark Papa said the find is in the ''first inning'' in remarks made today at the Barclays Energy Conference in New York.
Texas-based EOG (EOG) has been producing more natural gas than oil over the past several years, but the company has been actively looking for ways to boost its production of crude to take advantage of high oil prices.
Papa said Wolfcamp could eventually prove to be one of the largest oilfield in U.S. history. Wolfcamp spans parts of West Texas and southern New Mexico and is estimated to have gross oil reserves of 2.1 billion barrels oil equivalent, Reuters reported. EOG was the first to company to use horizontal drilling to tap shale plays.
On Wednesday, Papa announced that he will retire as CEO in 2013. He will be replaced by EOG's new president, William R. Thomas.