Welcome to Energy and Capital’s weekend edition — our take on the week in energy, as well as the top stories from Energy and Capital and our sister publications.
There’s no denying the impact that the Bakken formation has had in North Dakota. According to Lynn Helms, director of the North Dakota Mineral Resources Department, the state’s oil production is estimated to reach up to 400,000 barrels per day in mid-2011. Production is expected to stay that high for nearly 15 years. If you’re still having a hard time believing the Bakken is for real, consider the following: it’s one of the few areas left in the U.S. with a bullish outlook and part of the reason that U.S. crude production was able to grow 7.5% in 2009.
With oil prices staying within a comfortable range of $70-$85 per barrel, a new push to re-start major oil sands projects is underway. ConocoPhillips and Total SA announced they are expanding their joint venture at Surmont project. Husky Energy Inc. is also ramping up activity, spending approximately $2.5 billion on the first phase of its Sunrise project.
Despite this week’s volatility, Baker Hughes announced a 2.7% increase in drilling activity. The number of rigs drilling for oil and gas in the U.S. rose to 1,282, an 11-month high.
This week also marks the fourth consecutive jump in natural gas rigs operating in the U.S. Although natural gas prices traded within the range of $5.44/Mcf and $5.87/Mcf this week, the real news came from the EIA, which reported a drop of 245 billion cubic feet due to a colder-than-average winter so far.
In case you missed some of our top stories this week from Energy and Capital or our sister publications, I’ve included them below:
U.S. Shale Basins: The New Leader in Natural Gas
It’s official: The U.S. has become the world’s largest producer of natural gas. Energy and Capital Editor Keith Kohl takes a moment to explain how the U.S. was able to dethrone Russia, and more importantly, why it will stay this way for years to come.
We Were 100% Wrong About the Bakken: One Mistake That Made Us a Fortune
It’s not often that you see us happy over such a mistake. This time, however, Energy and Capital readers were able to take advantage of the hottest oil play in North America. In this bonus report, learn how your next Bakken profits are right around the corner.
A Look at Energy Management Stocks: How Saving Energy is Returning Billions
Energy and Capital Editor Nick Hodge has been obsessed with efficiency lately. And now that energy prices are on the rise, it pays to know a thing or two about saving energy. Nick breaks down an investment opportunity that’s about to make a huge splash on the market.
Greenland’s Gift: Controlling a Hunk of Arctic Tundra Worth $273 Billion
On this 500-square-mile piece of Arctic bedrock lies more than $273 billion worth of rare earth elements. Known as ‘technology metals,’ these elements are vital to modern circuitry. Energy and Capital reveals the one company that is taking control of this tiny chunk of the Arctic — and how it could end up making you a fortune.
Gold Investing in 2010: This Year’s Gold Market Outlook
Wealth Daily‘s Greg McCoach offers his 2010 outlook for the gold markets, giving readers several potential ways to profit when gold breaks the $1,500 level during the next year.
Health Care Stocks 2010: Two Ways to Win in the Health Care Battle
Wealth Daily Editor Steve Christ explains how investors can win the health care battle, including two health care stocks worth a second look.
The China Bubble Debate: Stock Valuations and Growth Projections
Wealth Daily Editor Adam Sharp weighs in the latest economic news coming out of China. Adam shows both sides of the debate as China’s economy continues to grow at a feverish pace.
Enjoy your weekend,
Keith Kohl
