Economics

Oil Play Ditched in '90s Gets Revival From EOG, Conoco

  • Since March, Austin Chalk saw deals by Blackstone, TPG, Conoco
  • Gulf Coast proximity, huge reserves spark Louisiana revival

Photographer: Eddie Seal/Bloomberg

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The next frontier for U.S. oil’s resurgence may come on familiar terrain.

The Austin Chalk, a vast underground ribbon of rock along the Gulf Coast, is garnering new attention this year, with drillers including ConocoPhillips and EOG Resources Inc. trumpeting efforts in an area the industry largely wrote off 20 years ago. Just last week, private-equity giant Blackstone Group LP soldBloomberg Terminal royalty rights in the region for more than $400 million.