We’re staring at the beginning of the end for OPEC.
Once you see the bickering, infighting, jealousy, and petty grievances members of the oil cartel have against one another, you’ll see the writing is on the wall for OPEC’s downfall.
And the biggest agitator is the most unlikely of conspiratorial candidates: Saudi Arabia.
After all, the Saudis have enjoyed their dominance over OPEC ever since the organization was formed 55 years ago, back when the original seven sisters controlled the global oil supply. The country boasts not only 265.8 billion barrels of proven crude oil reserves but also the world’s largest wishing well, the Ghawar oil complex, where millions of gallons of seawater are injected into the ground in order to keep oil flowing to the surface.
But lately, Saudi Arabia just hasn’t exhibited the sort of brotherly love you’d find in a group of oil-exporting countries.
It’s just the opposite, actually.
The consequences of this less-than-subtle oil war, however, will inevitably backfire, creating a golden opportunity for a group of people the Saudi royal family hates above all others: us.
Saudi Civil War
It should be obvious by now that King Salman and his country are trying their hardest to control the outcome of this oil price war.
A few things come immediately to mind…
Just as a nuclear deal with Iran is beginning to make progress, the Saudis have stirred up a hornets’ nest in the Middle East by conducting air strikes in Yemen. Even Russia called for a humanitarian pause to the military action, which must have sounded quite inane considering what Putin and friends are doing in the Ukraine.
You can’t really blame the Saudis for throwing a temper tantrum. Remember, once a nuclear deal is in place, sanctions on Iran will be lifted, allowing the Grand Ayatollah to export his country’s oil to tap into Saudi Arabia’s market share in Asia.
At last count, Iran is said to be holding up to 30 million barrels of oil in floating storage that it would unleash onto the global market as soon as it can.
And we all know how desperate the Saudis are to keep their precious market share.
The Beginning of the End?
Trust me, if King Salman could fire up his flux capacitor, hop in a DeLorean, and go back to those days, he would do it in a heartbeat — even though his predecessor would still be alive and kicking!
Two years ago, OPEC was safely on top of the global oil industry. Members hauled in more than $800 million in net oil export revenues (not including Iran).
In 2012, the oil cartel generated nearly a trillion dollars in net oil export revenue!
Saudi Arabia accounted for about one-third of that revenue
Unfortunately, the EIA recently reported that OPEC’s net oil export revenues declined by around 11% last year. And even though the Saudis still account for about one-third of the total, the threat to their market share is clear.
Ever wonder what makes young Saudi princes cry themselves to sleep at night?
Well, go ahead and take a look…
It’s no coincidence that OPEC’s underwhelming performance since 2012 coincided with U.S. oil output rising 82% during the last six years.
But like I mentioned, it’s not the sheiks that will rake in this oil cash cow — it’s individual investors like you.
All you have to do is look in the right place.
Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
The Bakken Boom’s Real Enemy
I know the Saudis want to use the U.S. tight oil boom as a scapegoat for their incendiary oil price war rather than admit their country is simply solidifying its position atop OPEC…
But the real enemy threatening premium tight oil plays like the Bakken in North Dakota comes from within.
To put it simply, infrastructure just hasn’t been able to keep pace with production growth. But now that drilling activity has slowed, we’re going to see a rush to build the necessary pipelines before the next bull market in oil is kick-started later this year.
This is something every serious U.S. investor should check out for themselves — and this free investment report spells it all out for you.
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.
