Jim Cramer: Another Side to the Oil Story

NEW YORK (Real Money) -- I got a chill down my spine last night when I was interviewing Mark Papa, the retiring CEO of EOG Resources (EOG), the fastest-growing major independent oil company in this country.

After listening to how the technology that extracts oil from rock has improved to the point where two areas thought to be just holding steady -- West Eagle Ford and Bakken -- are now accelerating, I was eager to hear about how the Permian Basin could be accelerating.

Was the Permian, I asked, bigger than anyone thought? Was this revitalized field going to blow people away as Pioneer Natural Resources (PXD), the king of the Permian, said it would on Mad Money the other night?

The soft-spoken but clipped Papa answered, "No." The Permian was not going to be as big as I thought. It was not going to turn out to be the biggest new field in North America, it was not going to be the second-largest oil field after Saudi Arabia.

Plus, he said, it was time to curb my enthusiasm about finding oil and producing it in this country because we may actually be near peak production even after all the new oil's been found and that the revolution, at least in oil and not natural gas, may soon start to become played out.

I was taken aback because I was thinking we are in its infancy and he was thinking that we are more mature.

Of course, if Papa is right then the move in these hyper-growth oils is at its zenith, even, perhaps, EOG, although the company did grow production an astounding 39%.

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