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The global oil market in 2013 was dominated by geopolitical disruptions, a huge boom in U.S. domestic production, and double-digit gains for energy investors. Energy stocks rose about 18% in 2013.
This year's gains should be even better, especially if investors follow the five biggest oil investing trends of 2014.
Just look at what's happening in the United States…
The U.S. Department of Energy predicts that the boom in domestic oil production is going to reach levels not seen in more than 50 years by 2016. In fact, the United States is expected to add 1 million barrels in additional capacity by the end of next year, another reason why the United States will remain the world's leading oil-producing nation.
So, what about the rest of the world? Hundreds of factors will influence the global oil markets in 2014, but no trends are bigger than these five.
Here's a look:
2014 Oil Investing Trend No. 1: The Texas Oil Boom Continues
Texas is the place to invest if you're looking to capture a reliable stream of energy profits in the year ahead.
Oil production in the Lone Star State increased another 18% in 2013, which followed a 35% increase in 2012. The state's total share of U.S. oil production has now gone from 18% in January 2013 to 40% today. The United States is now the world's largest oil producer, and Texas oil development has dominated the production boom.
In 2014, investment in Texas oil is only going to accelerate. Domestic production in other states is currently being hindered by infrastructure problems, and, of course, higher taxes. Tack on the favorable investment environment, vast shale fields, and proximity to refineries, and you've got yourself a nice big source of profits.
Investors should target midstream pipeline companies that provide producers greater access to the Gulf Coast refinery network and producers in the Eagle Ford and rapidly developing Permian shale fields.
2014 Oil Investing Trend No. 2: Renewed Iranian Capacity a Welcome to Global Markets
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.
Canadian Eskimos have been living on arctic islands for over a thousand years. Their villages are further north than any Russian villages, by a long long shot.
Putin should think long and hard about what he is doing in Canada's north. He is making a mistake to take on Canada.
Canada is not a big military power like Russia, but we have a special military force called Canadian Rangers. They are Canadian Eskimos who know how to hide, survive, out-smart, and thrive in the arctic better than any Russian soldier. They are well armed, trained, dedicated, supported by local residents, and their job is to patrol and protect the Canadian arctic. They do it well.
Russia should remember the 1972 hockey series. Russia had hundreds of thousands of professional hockey players to choose from to make up their national team while Canada had less than 1,000 to choose from.
Russian players were training together as a team for many months before the series started. Canada's players were plucked from various NHL teams only days before the series started.
Canada won that series in spite of Russian referees unfairly favouring their side, Russian operatives banging on hotel walls and making noise to keep our players from sleeping, restaurants putting things in food to make our players sick, and other dirty tricks.
Canada's team won the 1972 series because of dedication to the cause and a team spirit that cannot be drilled into someone like the old Soviets (and Putin) tried to do.
We will win in the arctic for the same reasons we won the 1972 series. So go ahead Putin, "make our day"……again.
Well can I remember that day , I was working for Granisle Copper in Northern British Columbia Canada , every man in that entire mine was gathered in the lunch room , not a sound could be heard but the radieo , 30 seconds to go and Canada sunk the winning goal , there was complete and unabandoned bedlam hard hats flying everywhere men dancing on the tables thumping each other on the back , it was like winning world war three , we were proud Canadians , every one of us .