Biden’s War on Oil Is a Golden Ticket for Your Portfolio

There’s an enormous game of chicken being played out right before our eyes. 

With the midterms just a few weeks away, the planned release of 180 million barrels of oil from our Strategic Petroleum Reserve will be at an end. 

For the last seven months, the SPR has been unleashing a flood of oil to help satiate a thirsty crude market. 

But just how much oil is the world thirsty for?

Back in December 2021, the world was consuming 99.5 million barrels per day. 

Keep in mind that this was months before Putin’s tanks crossed into Ukraine, while the world was just starting to get over two years of COVID lockdowns. Economies were opening up, and the sky was the limit for growth. 

Fast-forward to today, when the Russia-Ukraine war has caused endless strife in global industries, bitter geopolitical tensions, a bear market that has devastated stocks across the board (the energy sector being the sole beacon of light for investors), and hundreds of millions of people locked down in China as it desperately tries to get its COVID pandemic under control 

And yet despite all of those negative events, global oil demand is slightly higher than it was last December. 

In other words, the world’s oil consumption is still nearly 100 million barrels per day.

And it’s going higher in 2023.

With only a looming threat that President Biden is ready to release more barrels from the SPR if needed, at what point do you think he’ll realize it’s a fruitless endeavor?

More importantly, how long do you think oil can stay this low without those SPR sales?

Unfortunately, the answer is: not very long.

There’s a crude awakening ahead, be sure of that. And if the president believes we’ll simply drill ourselves out of this mess in a matter of weeks, he’s wrong. 

In his speech last week, President Biden pointed out that U.S. oil output was around 12 million barrels per day. For the record, this is about 1 million barrels per day below our pre-COVID peak. 

Although the president was quick to say that oil companies will increase output by 1 million barrels per day by the end of the year, I wouldn't hold your breath. 

As I mentioned last week, the drilled-but-uncompleted wells, also called DUCs, are the reason output has stayed higher — not because companies are in a drilling frenzy. 

So when the SPR taps are shut off and people finally realize that demand isn’t slowing, let’s just say that President Biden may be refilling the SPR at a higher price than he was planning.

Look, it’s impossible to NOT be bullish on oil as we head into 2023. 

But you know just as well as I do that every oil play isn’t created equal. Like every other oil boom-and-bust cycle in history, there is going to be a small group of winners that will reap a windfall as the need to drill more oil becomes a matter of national security. 

The good news is that there is a silver lining for investors in this oil crisis. 

You see, today’s best drillers aren’t the same breed of oil companies from decades past. These oil stocks have been through the worst of the worst, even to a point that oil prices briefly turned negative just two years ago!

Take a minute and let me show you the details behind the three overlooked oil stocks that are sitting on a win-win situation in 2023.

Until next time,

Keith Kohl

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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.

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