63,888 barrels every sixty seconds.
That’s the latest global demand projection handed down by the International Energy Agency (IEA).
At least, that’s what the IEA is expecting demand will grow to next year.
Stretch that consumption rate out over a single day, and we’re talking about 92 million barrels of oil — no laughing matter when you consider the world’s crude oil production has been relatively flat for the past decade (click table to enlarge).
The devil is in the details here, so let’s take a closer look…
For our purposes, we’ll narrow the playing field down to just North America, because that’s where a good chunk of the world’s production growth will take place in the coming decades.
When we talk about this topic, it’s always important to show you one of the most prolific predictions made in recent years.
My veteran readers know this chart well. It’s what will drive the oil sector for the foreseeable future.
You can see the critical role unconventional oil will play between now and 2040.
And taking into account the kind of media attention that tight oil production in the United States has been receiving lately, you can bet the situation is about to heat up even more.
For us, that’s presents an unprecedented investment opportunity — if you know where to look…
The $93 Million Trade
Over 874,000 barrels of oil per day flowed from North Dakota wells last July. At current prices, that oil is worth more than $93 million.
These numbers were reported by the North Dakota Department of Mineral Resources.
Source: North Dakota Department of Mineral Resources, Oil and Gas Division
By now, I don’t need to tell you that production is surging in the Peace Garden State.
When you find the right player drilling in these oil fields, the results can be spectacular… and far more impressive than the huge integrated oil companies that dominate the U.S. oil industry.
Consider this recent small cap Bakken story, one of three undervalued Bakken stocks that hurdled Big Oil, putting their performance to shame:
That, dear reader, is the kind of explosive growth that can take place when a company hits a sweet spot in the market.
You won’t see those kinds of gains by following ExxonMobil, BP, or any other household names…
Which makes you wonder: Is there a better opportunity on the horizon?
The Roadblock Ahead
It’s foolish to believe this party will go on forever. Despite estimates that North Dakota oil fields will be pumping out 1.6 million barrels per day in the near future, a major obstacle remains…
And this obstacle has served to put a select group of companies into a class of their own.
You won’t see anyone in this group strike it rich on the back of a gusher, and they might not be as hot as other North Dakota drillers.
But one fact rings true: Not a single drop of that Bakken oil will reach the open market without them.
Make no mistake; these stocks will also handily take down Big Oil.
You see, the other side of the equation to the Bakken’s future success is infrastructure.
The lack of pipeline capacity is a huge problem for producers. Two out of every three barrels produced from the Bakken today has to be shipped out via rail, which tacks on a few extra dollars per barrel.
And this is a problem that isn’t going away any time soon. After all, pipeline capacity in North Dakota was maxed out years ago.
This lack of foresight is perhaps the most overlooked piece of the U.S. oil puzzle for investors. And that creates an investment opportunity that’s ripe for picking.
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.
