For thousands of years, people have stared into the nighttime sky and mapped out groups of stars to help guide them to their destinations. I’m sure you can rattle off the names of the more famous constellations.
A few years ago, NASA released some interesting images that closely resembled these celestial clusters…
This time, however, NASA wasn’t photographing groups of stars, but the Earth itself. After focusing their cameras on the U.S., they showed us a new set of constellations… and I’m certain you’ll recognize quite a few of these shale stars:
I’d bet most people could identify the easier ones like the Eagle Ford and the Bakken.
Just like Orion, Andromeda, and Ursa Major guided ancient travelers from place to place, these shale stars are their own kind of road map.
And there’s only one place they lead…
The First Bakken Billion
Even though the most famous oil wells have become a relic of the past, it’s safe to say we’ve found our modern versions of the old gushers. That’s what today’s tight oil plays represent.
Take the case of the Bakken billion…
North Dakota’s oil production was stagnant for decades. As both you and I know very well, the combination of horizontal drilling and hydraulic fracturing helped open up a tight oil resource that was dismissed as uneconomical by oil companies as far back as the 1950s.
So just how far has this oil boom taken the Peace Garden State? Since 2008, daily output from the state has risen to more than a million barrels per day.
In fact, it was only recently that we learned the Bakken produced its one-billionth barrel of oil.
Perhaps an even more impressive feat, however, is that about two-thirds of this oil was produced within the last three years!
That’s quite a change from when oil was first struck on a small wheat farm in Williams County more than sixty years ago.
Believe me, there’s a good reason why investors are banking on the United States being an energy powerhouse in the years ahead.
In only six days’ time, the summer driving season will officially be in full swing. Already, demand for gasoline is more than 3% higher compared to last year. And despite the fact that the United States consumed 9.19 million barrels of gasoline last week, prices at the pump are at their lowest for the month.
Thing is, you don’t have to look very far to find those hidden investment gems.
Rising Stars in the U.S. Energy Boom
Look, one of the few ways to miss out on the U.S. energy boom is to trust the adage that bigger is better. Actually, it’s quite the opposite.
Unfortunately, far too many individual investors are starstruck by major oil companies like ExxonMobil.
They would be shocked to learn that these big oil players are usually that last ones to the party. It was true in North Dakota, in Texas, and in Pennsylvania. Now those three states are pushing tight oil and gas production to record-setting levels.
When I look at NASA’s map above, I see new shale plays emerging, and none more so than in areas that have been all but written off. More importantly, you’ll see them quietly build momentum.
Oklahoma is a perfect example. Oil production there declined by more than 60% between 1981 and 2005, yet it has slowly made a comeback in recent years to become our fifth-largest oil producing state.
For investors that were able to see the writing on the wall, the pitiful gains Exxon made for its shareholders paled in comparison to one tiny driller we’ve been following.
You can see the difference for yourself:
And the best part is that this relatively unknown oil company operating in Oklahoma is just one of five must-own oil stocks in 2014.
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.
