The Shale Oil Boom is Going Global (Starting With This Huge Deal in Argentina)
After almost 10 years of explosive growth in the U.S. and Canada, the shale oil and gas craze is going global.
Now, make no mistake. A head start in a business this critical is huge. But the rest of the world is catching up – and fast.
Is the U.S. Oil Boom Out of Balance?
It's boom time in Texas. From the Eagle Ford shale to the Permian Basin, it's practically raining money.
Now you would think that would be a positive for the local economies. But as this boom unfolds, it is not without its own share of problems.
What's Behind July's 9% Rise in Crude Oil Prices
U.S. crude oil prices finished the month of July on a very positive note. Front-month futures ended July at just above $105 a barrel.
That put those futures up about 9% for July, the largest one-month gain for crude oil in 11 months.
Another Shoe Has Dropped… and It's a Big One
I wasn't more than 30 minutes outside of D.C. the other night before my cell phone started ringing.
The calls involved breaking new developments overseas that promise to have a big impact on the global energy markets. They concerned a major global energy situation that is likely to create a domino effect that will have consequences for U.S. domestic policy.
How to Invest in the Next Stage of U.S. Shale Oil Production
If you want to know how to invest in the most lucrative area of energy, just focus on U.S. shale oil production.
In fact, we just uncovered the next wave of "millionaire-maker" shale oil plays.
It's hard to believe that an advancement as profitable as this one was practically non-existent merely 10 years ago.
Fast forward to last year, when domestic oil production marked the largest single-year increase on record, thanks in large part to increased U.S. shale oil production, according to BP's Statistical Review of World Energy. Oil production, including U.S. shale oil, grew by about one million barrels a day last year to about 8.9 million barrels per day, reported BP.
That's up 13.9% from 2011.
And, in turn, the increased U.S. shale oil production caused U.S. crude oil imports to drop to the lowest level since 1997, according to the U.S. Energy Information Administration (EIA). Crude imports in 2012 were about 8.5 million barrels of oil a day, down from a peak in 2005 of 10.1 million barrels per day – again thanks to rapidly growing U.S. shale oil production.
The Next Best Investments in Oil Come From This Texas Sweet Spot
As I wrote up this analysis of the best investments in oil, a familiar saying came to mind: "Everything old is new again."
A truer statement could not be said about the Permian Basin, which is a geological formation roughly 300 miles long and 250 miles across that stretches across west Texas and eastern New Mexico.
It has been producing oil (29 billion barrels worth) since 1921. But even as recently as a decade ago, it was thought to be played out.
A Big Time Squeeze for Refineries is About to Begin
After banking some very hefty profits for Energy Advantage and Energy Inner Circle subscribers on refining stocks earlier this year, the entire sector now is about to land "between a rock and a hard place."
Once a high-flying place for investors to earn substantial profits, refiners have been under pressure for the last two months. But that's actually just the beginning of what's to come.
To Avoid Horrific Rail Disasters We Need More Pipelines
In the wee hours of July 6, 2013, a freight train derailed. The accident sent several cars hurtling downhill into the small Quebec town of Lac-Mégantic, close to the American border.
The train was full of crude oil, and the cars, without any brakes or engine power, went smashing into the center of town. The ensuing explosion leveled Lac-Mégantic's homey, lakefront downtown. Thirty buildings were destroyed.
Fifteen are known dead as of now, with another forty still missing. The town's library and archives, containing the town's most important historical documents, are gone. Its economic lifeline is now badly frayed, hit by a runaway freight train.
The Sûreté du Québec, the provincial police, have already begun a criminal investigation to determine the reason why the
oil tankers were decoupled from the engine, and why the brakes on those cars failed.
The authorities will discover the immediate reasons for the crash in the fullness of time, there's little doubt.But it's what those cars were carrying that bears more scrutiny.
It was oil.
The cars were carrying hundreds of thousands of gallons of crude oil, from the Bakken formation in North Dakota.
Why "Deleveraging Markets" Will Drive Up Oil Prices
I’m set to appear on Fox Business Network this afternoon (at about 2:50 Eastern) to deliver this revelation, but you heard it here first.
Recently, I have been suggesting a narrow trading band for both West Texas Intermediate (WTI) and Brent crude in London. They’re trading today at about $96.00 and $103.00, respectively.
China Gets Hungry for Arctic Oil
China is the world's second-biggest importer of crude oil and its companies are on the prowl for oil all over the world.
By 2015, its oil companies are expected to produce more oil outside of China's borders than Kuwait pumps, according to the International Energy Agency.
The global Chinese search for energy has put a new region on the top of its agenda: Arctic oil.
The Arctic oil race is heating up as more countries look for paths in to this new hot source of energy profits.
You see, with the warming and melting of the Arctic ice cap, it is becoming easier to possibly exploit the energy riches that lie beneath the cold waters.
Money Morning Global Energy Strategist Dr. Kent Moors discussed the search for Arctic oil and gas in a recent article. Moors said the long-awaited U.S. Geological Survey's Circum-Arctic Resource Appraisal study found that 84% of the total undiscovered oil and gas left on the planet is located above the Arctic Circle. The oil and gas are mainly offshore and in three large basins that lie under shallow seas.
The vast potential of the Arctic for oil and gas piqued the interest of nations with territory north of the Arctic Circle such as the United States, Canada, Russia and Norway.
But it also got the attention of countries – like China – with no direct claim there, but with an increasing appetite for energy.
The Race for Arctic Oil: China and Iceland