I was struck with a feeling of déjà vu a few weeks ago.
The reason for the flashback?
The rig I was on had an overwhelming number of similarities with one I had visited in North Dakota years ago…
They both had the same splash of black crude on the handrail as you made your way up the steps, and each seemed to have the same worm sweeping a pile of dirt in the corner. There was even something eerily familiar about my friend who was taking me on the tour.
There was one minor difference, though — and that was the weather.
“This definitely beats the cold,” I muttered to myself as I climbed the metal steps of the drilling rig.
My last trip provided my first experience with winter in North Dakota. It was bitterly cold on my visit to the Williston Basin, with outside thermometers reaching a jaw-dropping -15 degrees. (I was told later that the temperature dropped even further after I left!)
So you can imagine my relief as I stepped out of the truck into the warm California sunshine…
Even though I was over 1,500 miles away from Williston, North Dakota, the air smelled the same — like cold, hard cash. That’s the only appropriate way to describe the oil fields in Bakersfield, California.
But seeing these rigs wasn’t the main reason for my sojourn out West. That was just an appetizer to what I was really after: the Monterey Shale.
Had this been 2008, the media machine buzz would have engulfed the Monterey Shale — including any company holding a stake in it.
“Monterey fruit is ripe for the picking,” my friend told me, slamming the truck door shut.
Naturally, I had to press him for details…
California’s Black Gold Rush
Call it a boom, an oil revival, a resurgence — that’s what’s in store for California’s oil industry.
Earlier this week, I mentioned how things haven’t exactly gone according to plan for the state’s oil companies as of late.
But that’s about to change for the better.
Located in the San Joaquin and Los Angeles basins, there’s a staggering amount of oil contained in the Monterey Formation. At last count, the EIA had pinned the amount of technically recoverable crude at approximately 15.4 billion barrels.
Nobody is doubting how profitable this play could potentially grow over the next few years…
You see, we’re talking about a massive shale play that’s still in its infancy — which means we could see a rush of drilling activity on the horizon for companies hoping to extract the shale oil from the rock.
It’s going to lead investors to a very hefty payday.
$1.6 Trillion in Crude Profits for the Taking
Shortly after we headed out for the airport that evening, my friend and I got into a conversation about the market.
I had brought up a previous observation: that the Monterey is being grossly overshadowed at the moment by other shale plays that dominate media headlines. There wasn’t the same sense of urgency back then from investors, when hardly anyone outside of the Williston area cared one iota about North Dakota oil production. It was as if the rest of the herd had no idea about the boom times ahead.
“They’re always the last ones to know… which is probably why they get burned the most,” my friend pointed out.
I nodded in agreement. After hearing horror stories from more than a few investors whose picks took a turn for the worse after realizing they had bought too late, I know this much to be true.
And that’s the major difference with the Monterey today: Investors know the kind of profits to be made in the U.S. shale patch.
With oil at $107 per barrel, that makes the 15.4 billion barrels of recoverable oil in the Monterey Shale worth an eye-popping $1,647,800,000,000!
That’s why I’ve cut the field for my readers down to just two Monterey Stocks, both of which stand to make a veritable fortune for shareholders who are smart enough to get in early.
Ever wonder why it’s always a small, elite group of investors that pulls out the most gains from these massive shale deposits across the United States?
Put simply, it’s because they’re the ones constantly on the lookout for fresh emerging oil plays — like the Monterey Shale.
This is what they’re buying today.
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.
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