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A Few Reasons To Buy Whiting

So let's talk oil markets. The U.S. has become the de facto swing producer in the global oil industry. As a result, all eyes are on America's reaction to the recent record lows in oil prices. An oil market rebalancing could occur if the U.S. production falls. Truth is, the U.S. has already begun falling from the recent record high production levels. The peak in March was about 9.7mmb/d and has come down 5% since then. Many analysts believe that this production will continue to fall into late 2016 when they believe it should level out. Either way, this year's low oil prices and lower investment will ensure that the current level of production is a temporary phenomenon across most of the industry.

With that said, it's time to start looking at drillers who are geared to either increase or maintain current levels of production into 2016 and beyond. I believe that Whiting Petroleum (NYSE:WLL) is in a position to capitalize on this impending slow down, and shine as one of the few companies on the rise. Here are a few reasons why I think Whiting is a strong Buy.

1. Whiting possesses a large inventory with high potential and a long term production base.

Denver's Whiting Petroleum is an oil and gas company founded in 1980. They operate out of the Denver-Julesburg (D-J) Basin in Colorado, the Permian Basin in Texas, and the Bakken/Three Forks region in Montana and North Dakota. They had 780 million barrels of proved oil equivalent at the end of 2014. Most of those reserves were oil (approx. 80%). At the time, they were producing 115,000 barrels per day.

At its home turf, Whiting owns about 130,000 acres in the Denver-Julesburg Basin of Colorado. In this region is some the U.S.'s most promising Niobrara formations. This base of operations has given Whiting a platform to launch into other...