OPEC's Oil Masquerade

Mark my words: OPEC is going to blink first.

Even after the oil cartel’s Secretary General recently said that OPEC’s decision to keep production steady wasn’t targeted at tight oil producers in the United States, Russia, or Iran, it’s hard not to see the 12-member organization capitulating by summer.

Truth is, the oil war the Saudis have been waging for the past nine months has been against everyone. After all, it was Saudi Arabia that bullied the rest of OPEC to not cut output.

If you asked Venezuela for its thoughts on whether or not to cut production, the response would have been immediate.

I’ve mentioned before that the Saudis are using low oil prices to kill two birds with one stone.

Unfortunately, the masquerade won’t last much longer.

Just remember something the Saudis don’t want you to know: They are the ones at our mercy.

All Bark, No Bite

The Saudis have made it clear they’re after one thing: market share.

Can you really blame them?

The American Petroleum Institute reported last week that U.S. petroleum demand averaged 19.3 million barrels per day in February — its highest level since 2008. Gasoline demand was at its highest level since 2009.

Moreover, the United States imported 7.6 million barrels per day last month.

There couldn’t be a better time for King Salman to strike, could there?

But despite both the drop in drilling rigs and the fact that companies across the sector are slashing budgets, U.S. production is still projected to increase slightly in 2015.

So much for burying the “frackers” in North America.

More importantly, if oil prices recover during the second half of 2015 as I expect them to, the first thing we’ll see is a boost in drilling activity.

So it’s not surprising that investors are starting to look for those diamonds in the rough within the oil patch.

Yet you have to ask yourself: Is there a better buying opportunity out there right now?

Absolutely…

Soothsayer Oil Profiteering

Is oil going to surge to $200 a barrel tomorrow? Of course it isn’t.

You and I both know that. Yet even in the absence of a sudden price spike, there’s always an opportunity on the horizon.

For the United States, and more specifically its second-largest oil producer, it all boils down to one thing: infrastructure.

Contrary to popular belief, I’m not referring to oil by rail. Just think how many times you’ve seen an oil train derailment dominate mainstream media headlines…

We’re still in the first quarter, yet most of you can probably recall at least four high-profile derailments, with the most recent one in West Virginia.

The problem is that we’re still in the beginning stages of the blame game. The rail industry points to the oil companies and tells them to lower the volatility of the crude being transported. Oil companies stare right back and explain to the rail industry that their trains should probably stay on the tracks.

Both flood Washington, D.C. with cash to lobby their causes, and we find ourselves mired in the beltway gridlock.

Look, there are few certainties in today’s market. But one of the few is that the United States will be a major oil consumer decades down the road. Like I mentioned above, U.S. demand for petroleum is at a seven-year high.

And considering that the war on rail is just starting and that trucking oil out of North Dakota comes with a hefty price tag, we’re really only left with one solution to this infrastructure crisis in North Dakota: pipelines.

Let’s be clear… it doesn’t matter what your personal stance is on the Keystone XL pipeline.

There are over 2.5 million miles of pipeline crisscrossing the United States, and you’re benefiting from every last inch of it.

But I’m talking about more than simply picking up the first pipeline stock you come across…

My readers and I have uncovered a play that not only is helping those major players improve the flow rates in their pipelines but also offers a much more attractive yield in the process.

This stock is trading for less than $20 per share right now, yet its yield is three times higher than Enbridge’s.

Don’t take my word for it — check out the details 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.