Oil Archives - Page 4 of 35 - Money Morning - Only the News You Can Profit From
How to Invest in Oil as Pipelines Release Trapped Profits
The story of how to invest in oil in the U.S. is changing thanks to a new development…
Before now, much of the increased oil production (U.S. output at a 17-year high) from the Bakken in North Dakota and the Eagle Ford and Permian Basin in Texas never reached the marketplace. It simply piled up in storage facilities at the main U.S. oil hub in Cushing, OK.
The huge inventory of oil at Cushing was the main culprit behind domestic WTI (West Texas Intermediate) crude oil selling at a discount to the global benchmark, Brent crude oil.
But, as pointed out by Money Morning Global Energy Specialist Dr. Kent Moors, that is all beginning to change.
Already the spread between WTI and Brent has narrowed dramatically from about $20 a barrel in February to less than $3 a barrel today.
The reason for the change is the amount of pipeline infrastructure being added to move oil from the Cushing choke point to refineries on the Gulf Coast.
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.
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.