It's the sort of headline that drives the barflies at my family's bar in Baltimore just crazy.
See, to them, it defies logic…
In September, the U.S. exported 430,000 more barrels of gasoline than it imported. The country is now on track to become a net exporter of refined oil products for the first time in 62 years.
Meanwhile, domestic prices at the gas pump are poised to rise to record levels.
Combine those two facts, and it appears you have a paradox.
The barflies blame government… oil companies… even the bartender… (we do have to factor shipping costs into beer prices).
"How," they ask, "can we export so much gasoline, but gas prices are going through the roof?"
After suggesting an answer, I explain they need to ask another question…
They should consider this: "Why aren't they investing in companies poised to profit from this situation?"
You see, while consumers and politicians will spend all this time pointing fingers over this story, a real lesson on the energy markets continues to emerge…
And it's a lesson that savvy investors and readers of OEI have heard before: Where and how to profit when news like this breaks.
Nothing New to See Here…
Since the inception of Oil & Energy Investor, Kent has written at length about the new age of domestic energy production taking place in the United States.
Because it's the biggest energy story to hit our shore in decades…
New oil and gas shale plays across the rural United States have provided access to a wealth of new supplies once considered unattainable. The levels of production will allow the U.S. to export more natural gas within the next few years, thanks to large-scale projects like Cheniere Energy's Sabine Pass terminal in Louisiana.
And then, over the weekend, we learned that the U.S. refiners are producing excess levels of gasoline on our shores, even as overall demand for the fuel has dropped.
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