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Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

The Greatest Investment Theme of This Decade

Commodities / Crude Oil Aug 14, 2014 - 12:44 PM GMT

By: DailyWealth

Commodities

Matt Badiali writes: It's not too late to grab a stake in the U.S. oil boom...

Yesterday, I shared my experience at the U.S. EIA 2014 Energy Conference last month in Washington D.C. In short, some of the smartest people in the industry, like Daniel Yergin, are projecting U.S. oil production could nearly double from today's levels within the next 20 years.


And that projection may end up being conservative...

As you know, new technology has unlocked vast supplies of oil in the U.S. And these technologies are still in their infancy. The oil industry is 150 years old and we've been fracking for gas for years... but cracking shale for oil is just five years old.

In conventional oil fields, oil production declines about 5% per year, and we recover about 50% of the oil in place. In shale (or "tight") oil fields, production declines 50% per year, and we recover about 5%.

In other words, we're leaving 95% of tight oil in the ground.

There are trillions of barrels of oil in U.S. shale. And as we improve our extraction methods, production estimates will continue to climb.

Our supply will soon overwhelm our existing infrastructure. And we'll need new pipelines, new ports, new refineries, and new laws to accommodate the growth.

Companies are going to spend tens of billions of dollars developing U.S. oil assets. And they are going to turn those billions into hundreds of billions, if not trillions of dollars in value.

Here are a few projects in the works...

•2,000 new hires in the Marcellus Shale – an increase of about 1% of the total workforce.

•Global Partners (GLP) plans to build an oil-rail terminal in Port Arthur, Texas.

•ONEOK (OKE) plans to invest $785 million in gas processing in the Bakken Shale.

•Summit Midstream Partners (SMLP) will develop a new Bakken Shale oil pipeline and storage facilities.

•Newfield Exploration (NFX) will spend $1.7 billion in 2014 drilling wells.

• Whiting Petroleum (WLL) spent $3.8 billion to acquire rival Bakken oil producer Kodiak Oil and Gas (KOG).

Those are just the most recent headlines... but I could list hundreds of new projects planned and under construction. This isn't a mania or a bubble. This is wealth creation at its finest.

The U.S. shale revolution is this decade's greatest investment theme.

That's why we believe every investor should own U.S. oil stocks. We're already poised to produce 14 million barrels of oil per day in the next 20 years – far outstripping the major Middle Eastern producers. And as our drilling techniques continue to improve, so will our production rates.

It will take trillions of dollars in infrastructure to accommodate this growth. Huge new volumes of oil must be produced, moved, and sold. And oil companies are now in a massive investment phase. But the returns will be enormous...

For those of you who remember the oil shortages of the 1970's, it's a new day. U.S. oil is primed to turn the global industry on its head. We know how to find it. We know how to produce it. And the world needs it.

This trend is going to last a long, long time. It can bring you and your family all kinds of benefits. The most obvious is the incredible boost it will provide the U.S. economy. The surge of wealth coming out of the ground creates "ripple effects" across all industries. Money earned by the oil industry will flow into retail businesses, hotels, housing, airlines, and restaurants.

You can also make personal investments in the best oil producers, companies that sell services to oil companies, and oil infrastructure firms. These companies will enjoy a huge tailwind for years and years.

If you're looking for a new career yourself, consider the oil business. If you have children thinking about careers, talk to them about the oil business. It's going to need a lot more skilled people over the coming years. You'll be able to find a good job for a long time.

Sure... you've heard a lot about the U.S. oil boom. But despite all the press it has received, it's just getting started... and it's going to last a long time. Don't miss out on it.

Good investing,

Matt Badiali

Matt Badiali

P.S. In a couple weeks, we're going to publish three special reports for our S&A Resource Report subscribers that will show you exactly how to invest in all phases of the oil boom. If you don't yet receive the S&A Resource Report, this is a great time to subscribe. It's going to be the most important piece of oil investment information I've ever published. You can sign up for a completely risk-free trial subscription right here. (This does not link to a long video.)

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2013 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

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