We don’t throw around the term “oil gusher” much these days, and hearing those words conjures up different things for different people.
For some, the words bring up a sense of nostalgia from an historic oil boom, when Captain Anthony Lucas and Pattillo Higgins drilled a well in the southern part of Beaumont, Texas and struck oil at a depth of 1,139 feet.
Of course, it was the Lucas gusher that kick-started the Texas oil industry in 1901, and today — 114 years after Lucas and Higgins hit pay dirt — the Lone Star State is still extracting more crude oil than many OPEC countries!
For others — maybe those kayaktivists that beat their protest paddles in a rhythmic, thudding dance against their kayaks — the image of an oil gusher is enough to make them shudder in revulsion at the thought a well blowout that spews hundreds of thousands of gallons of filthy crude more than 150 feet into the air.
In the Middle East, it’s much the same mental picture. The visual of a group of oil execs from California Arabian Standard Oil Company pops up, standing on top of a sand dune and looking out to imagine a desert landscape similar to this:
But no matter what you think of when you hear about an oil gusher, there’s always one conclusion you can draw from them: an oil boom is on the way.
It was the exact same conclusion we drew after hearing about a tiny company hitting an oil gusher back in April.
Now, we’re not talking about the same gushers of old. There was no blowout, no group of execs greedily surveying the horizon, and certainly no thick black column of crude oil exploding towards the clouds.
Yet despite the differences from the more traditional definitions, the result could be the same: there’s a boom ahead.
More importantly, there’s a way that individual investors like us can prepare for it…
Dark Tidings: The Curse of the Net Importer
Before I delve into the story of this modern gusher, it’s necessary to understand why it’s so important for the place in which it was drilled.
I’m talking about the United Kingdom.
Unfortunately, our friends across the pond are digging themselves into a hole with regards to their energy production.
It started back in the 1980s, when the UK became a significant net coal importer. Up until that point, the UK had been consuming in a variety of sectors:
As you can see, the UK’s primary coal demand is allocated toward its electricity sector.
Fortunately, natural gas infrastructure had been set in place, which helped reduce coal demand and alleviate any pain felt from a need for more imports.
Sadly, the UK hit another milestone in 2004, when it became a net natural gas importer. Production simply declined, while the UK’s demand for gas increased.
A year later, it became a net crude oil importer.
Then in 2013, something took place that hadn’t occurred since 1984: the UK had officially become a net importer of petroleum products.
Sometimes a chart says a thousand words, and the one below showing the United Kingdom’s descent into becoming a net importer is no exception:
Click Image to Enlarge
So you can imagine an oil and gas boom is just what they need…
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The Secret Behind the Gatwick Gusher
Like I mentioned earlier, the April gusher struck by UK Oil and Gas (LON: UKOG) at a site in Surrey wasn’t your traditional gusher.
No, the Horse Hill gusher is the reason there’s an estimated 271 million barrels of oil per square mile in the Weald Basin.
Located next to the Gatwick Airport, the Horse Hill oil discovery may be the catalyst that ignites a shale oil and gas boom inside the UK.
You see, not only is there believed to be between 50 and 100 billion barrels of oil in place beneath the Weald Basin, but the British Geological Survey doubled its estimates for the shale gas reserves in the Bowland Basin last year — to as much 2.3 trillion cubic feet of shale gas prospects.
Three weeks ago, I wrote about the potential of the Weald Basin discovery.
Today, it’s time to take the next step and reveal a trio of energy companies that will play a huge role in any upcoming shale boom within the UK.
Members have been calling it our UK shale triple play.
And in my newest investment report, you’ll find out how they’re getting in on the action — at absolutely no risk to 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.
