how to invest in oil
Back in the times of the California gold rush, people didn't need to work out how to invest in the bonanza. They simply grabbed some basic mining gear and headed up into the hills.
Today California is the home of yet another wealth-creating boom - the oil contained within the Monterey Shale formation.
As Mark Twain once said, "History does not repeat itself, but it does rhyme."
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how to invest in oil
2013 Oil Prices: Where We Go From Here
There's been movement in crude oil prices in 2013 that investors should be watching...
Global oil prices diverged yesterday (Tuesday) as market factors both in the U.S. and abroad painted a very distinct picture for energy costs.
Options for West Texas Intermediate (WTI) for September delivery fell $2.14 to settle at $104.96 a barrel on the New York Mercantile Exchange.
These Fracking Trucks Reveal Energy's Most Underreported Boom
Now that the rig market for oil and gas projects is heating up again, it's time to invest where energy's big-money cycle actually begins.
After all, without a rig, a well is nothing more than a dot on a map.
That's why the oil field service (OFS) business always improves before the fortunes of field production companies.
But there's an even earlier link in this profit chain...
How to Invest in the Companies That Keep the Oil Boom Humming
Don't look now, but the rig market for oil and gas projects is heating up again.
After suffering through a period when rigs were being "retired" from the field, the pendulum is swinging back again. Rigs are suddenly in high demand -- and hold the secret to how to invest in the growing U.S. shale oil boom.
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.
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.
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.
These Oil Stocks Are the Big Winners in This Year's "Summer Pop"
I have been "in the field" for the past several days and will be back in circulation later this week. But I wanted to send you a note on what's been taking place recently.
The last two trading sessions have seen a spike in oil stocks. The rise has been focused on companies that provide services to early-stage field development, as well as for crude production.
Now, we have witnessed a similar "summer pop" in each of the past three years. It tends to signal a rise in expected medium-term demand for both crude oil and oil products.
However this time around, the improvement isn't reflected in companies across the board, but rather in those emphasizing geographically specific field plays.