Does OPEC Own You? You’d Be Surprised

Does OPEC own you?

Most of you may not realize it, but it does.

Before the uproar of disagreement bursts forth, however, I want you to keep in mind that this didn’t happen overnight. The 13-member global oil cartel didn’t take control all of a sudden. 

It’s been this way for years — you just didn’t realize it. 

Let me show you what I’m talking about.

I know it may not seem like we are heavily indebted to OPEC. After all, its members only accounted for 13% of U.S. crude oil imports in 2021, when we bought roughly 789,000 barrels of oil per day from the group. That’s not too bad considering OPEC members supply around one-third of the world’s oil supply. 

Now, on the surface it looks like we’ve been unshackling ourselves from the chains that have bound us to OPEC for more than a decade. 

Back in 2007, OPEC accounted for over half of all U.S. imports of crude oil!

All it took to reduce our reliance on OPEC oil back then was an unprecedented tight oil boom that increased our domestic production nearly twofold, before the COVID pandemic sent both supply and demand crashing lower. 

A cursory glance might have you think we’ve all but emancipated ourselves from OPEC’s grasp. 

Take a deeper dive behind the scenes, though, and you’ll find this isn’t the case. 

OPEC Is Playing the Long Game

While it’s absolutely true that the U.S. tight oil boom changed the oil game forever, it’s NOT the whole story. 

For that, we need to take a trip back several years ago to the biggest oil story you’ve never heard of.

Well, maybe you have. Some of my veteran readers might remember the historic moment that took place in Jefferson County, Texas. 

Still doesn’t ring a bell? 

It all started 120 years ago with the Lucas gusher, which spewed hundreds of thousands of barrels of oil more than 150 feet into the air at Spindletop. 

What you may not have realized is that in response to this newfound oil wealth in southeastern Texas, companies started building the infrastructure necessary to extract and transport all of this Texas tea. 

Soon after striking pay dirt, the first processing units of a new refinery were built in Port Arthur, which became the heart of oil refining inside the United States. In fact, much of our crude refining capacity is located along the Gulf Coast of Mexico.

Today, Port Arthur is home to the Motiva refinery, the largest oil refinery in North America.  

So let me ask you: Which company do you think owns this massive refinery?

When I polled a few friends and colleagues, the answer usually came with a shrug of their shoulders, perhaps a mumbled answer of Exxon, Shell, or another household name for Big Oil.

Those of you who said Shell were the closest but still WAY off the mark. 

You see, Shell did own a 50% stake in the Motiva refinery… that is, up until 2017, when Shell’s share of the operation was quietly bought out. 

And the new owner just so happens to be Saudi Arabia’s national oil company, Saudi Aramco.

Let that sink in for a moment.

Five years ago we handed Saudi Arabia the keys to our largest oil refinery — one that operates with a crude capacity of 636,500 barrels per day!

The Saudis don’t need to sell us their oil; they’d be more than happy to export their crude to China. 

Keep that in mind when you start seeing the mainstream media go on the attack after this week’s OPEC+ meeting, in which OPEC and Russia agreed to slash the group’s production ceiling by 2 million barrels per day. 

The Last Oil Stocks to Buy in 2022

By now, it’s clear that the Saudis aren’t taking our side. 

Perhaps it’s from the lack of goodwill from the White House, which has a new scapegoat for high oil prices every few weeks, or the fact that the U.S. is leading the charge for the G7 to impose a price cap on Russian oil.

I know a price cap sounds great to us since it puts pressure on Putin to end his war in Ukraine, but the idea of consumers setting price limits on oil as a punishment is horrifying to OPEC members.

And it’s just as absurd for President Biden to dictate oil prices as it is for him to tell gas stations to simply sell their product for a cheaper price, especially considering he’s practically at war with U.S. drillers over not flooding the global market with more supply.

However, the Saudis are playing the long game, and they have one bona fide ace up their sleeve. 

Every week that passes brings us closer to the date when Biden will stop releasing oil from the U.S. Strategic Petroleum Reserve. We talked about this recently when I told you there was a perfect investment storm brewing for oil this winter. 

Make no mistake, this is remarkably bullish for oil prices this winter. 

It also makes a small group of U.S. oil stocks wildly valuable for investors who recognize what’s going on. 

By the time the investment herd realizes what’s happening today, it’ll be far too late to act. 

I strongly recommend you take a few minutes out of your day to check out this investment presentation in which I’ll show you exactly which oil stocks will reap a profit windfall in the weeks and months ahead. 

Learn all the details out right here.

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.

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.