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 You can tell a lot about crude oil prices by studying one key pattern - a pattern that has abruptly reversed of late. The reasons for the sudden change could have a profound impact on energy investors...Read More...
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...
It's a smaller industry, and may not get much coverage. But the OFS business wouldn't exist without it... and neither would the all of those oil wells.
That's why the company we'll look at today is one of my favorite oil and gas plays.
First, take a look at these pumping trucks... Read More...
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.Read More...
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.Read More...
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.To continue reading, please click here...
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.Read More...
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.To continue reading, please click here...
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 continue reading, please click here...
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.To continue reading, please click here...
How to Invest in Oil's Final Frontier: The Arctic
Investors searching for how to invest in oil in 2013 should be focused on these latest developments from the Arctic.
In fact, countries are racing to get a piece of what could be the final frontier for oil...
As ice melts in the Arctic region, oil and gas trapped beneath the water becomes more accessible.
Money Morning Global Energy Strategist Dr. Kent Moors recently explained to Money Morning members about the search for Arctic oil and gas.
He spoke about the years-in-the-making U.S. Geological Survey's Circum-Arctic Resource Appraisal. The study found that 84% of the total undiscovered oil and gas left on the planet is located above the Arctic Circle, mainly offshore and in three huge basins that lie under shallow seas.Read More...
This Key Energy Metric Could Make You A Lot of Money
Last week I discussed what EROEI is-and how to use it.
This week I'd like to talk about how this key metric affects the balance of your energy investment portfolio.
Now, this is certainly not the only element in determining preferable stock moves, but it's critical that you know the EROEI because it could make you a lot of money.
Recognizing the real elements that determine the genuine cost of energy production, EROEI is becoming an important factor in estimating profit margins.
And those margins certainly influence the performance of a stock as we've seen all across the energy value chain in recent months.
EROEI refers to the amount of energy used to produce energy.
If this ratio produces a figure of 1.0, EROEI is telling us that it takes one barrel of oil equivalent to produce one barrel as a result.
Anything under 1.0 means that more energy is consumed in the production process than is gained as an end product.
EROEI has the advantage of being a useful yardstick throughout the energy curve - from upstream production sites (wellheads, generating facilities) through midstream (gathering, transit, storage and initial processing) to downstream (refineries, terminals, wholesale and retail distribution, end use).
Some applications of EROEI are already in wide usage, although we don't tend to think about them in these terms. Energy-efficiency ratings on appliances, heating and cooling systems, windows, or building supplies are an application at the end of the energy curve.
But how can we use this to fine-tune an investment portfolio?
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