It’s only natural for us to get starstruck by Big Oil.
I’ll confess I’ve caught myself staring at the sheer size of mammoth oil companies like ExxonMobil. What’s more, countless investors have dreamed of finding ways to tap into Big Oil’s multi-billion-dollar war chests for decades.
Now they’re finally getting their wish.
But first, let me show you why Big Oil is dolling out a lifetime of wealth in rent checks to a small group of shareholders that are taking advantage of the quietest oil boom in history.
It all starts in Geoje Island…
Go Deep or Go Home
Trust me, Geoje Island was the last place on the planet I would expect fresh-faced graduates from Texas to wind up, but make no mistake — they’re there.
The population is an eclectic group of welders, machine operators, pipe fitters, riggers, painters, electricians, carpenters, and, of course, engineers.
You see, despite the fact that this tiny piece of land off the coast of South Korea only covers an area nearly nine times smaller than the state of Delaware, billions of dollars pour into Geoje Island’s largest industry: shipbuilding.
In just one day alone, more than a billion dollars floated away from one of the island’s harbors, and this is what it looked like…
Of course, this is just one of at least 60 new ultra-deepwater rigs that will be delivered worldwide over the next two years.
Like it or not, this army of shipbuilders is preparing for an oil war that has been building for the better part of the last century. And in this war, there are roughly 92.1 million casualties every single day. (That’s the amount of oil the world consumed every twenty-four hours during the fourth quarter of 2013.)
The IEA expects global demand to rise even higher in 2014.
More importantly, few people understand how and where today’s oil supply is being produced — but the residents of Geoje Island are among those few.
They know that one-third of the world’s oil supply is produced offshore.
Not only will the gap between onshore and offshore production increase, but there is one distinct trend gaining steam in the offshore oil industry: Big Oil is now forced to drill deeper than ever before.
There’s a silent oil boom taking place offshore right now — one that’s grossly overshadowed by the tight oil plays that dominate industry headlines.
Every now and then, however, you and I will catch a snippet of how immense offshore investments will become going forward.
Just a few days ago, Ghana announced it was spending at least $20 billion on offshore fields over the next five years.
That’s a pittance compared to the $217 billion Brazil will spend between now and 2017 to develop its offshore resources.
Norway’s Oil Minister, Tord Lien, recently chimed in on his country’s latest round of offshore bidding:
“This is a new record, both in the number of production licenses and the number of companies… [the government] will maintain a predictable and high pace in awarding new areas for petroleum activity.”
Remember, it isn’t cheap to drill in water depths of more than 4,500 ft., which means that for the first time in history, you and I can turn do something we’ve previously only dreamed of…
We can finally start gouging Big Oil.
A Lifetime of Wealth, One Rent Check at a Time
The best part about offshore drilling is that companies like ExxonMobil, BP, Total, and others are forced to pay outrageous contracts to produce and ultimately sell their offshore oil.
Consider it the most secure revenue stream you’ll ever encounter.
ExxonMobil forks over $3 million every single day, and it’s happy to do it. British Petroleum and Total transfer $7 million into their deep-sea landlord’s bank account on a daily basis.
Even indomitable national oil companies aren’t immune to this daily fee. Saudi Aramco pays billions to keep Saudi production afloat through its offshore drilling operations.
In turn, these “slumlords” directly exploiting Big Oil then take that cash and put it right into your hands.
Today, there’s one company out there that will rule them all — and my latest investment report will tell you exactly which offshore slumlord is renting out its high-end fleet of drillers to the tune of over $25 million per day!
Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.
