What You're Not Being Told About Oil

We’ve been talking a lot about oil recently…

About supply-side shocks and demand destruction delusions. About oil blunders. About real oil panic and the desperate moves — namely mending ties with our enemies — made in a last-ditch effort to bring more oil to market. 

It has all been leading up to this moment. 

Today, I want to show you something that has kept oil prices from surging far above the psychological benchmark of $100 per barrel. 

You see, there’s one phrase that anyone with a single dime invested in oil stocks needs to immediately commit to memory:

More with less.

Say it out loud. 

Then close your eyes, and repeat it over and again in your mind, because this phrase has become the mantra of the U.S. oil industry; it’s the only thing saving us from from an all-out energy crisis. 

Why “More With Less” Is the New Normal

In August 2023, the United States’ monthly oil production broke into record territory after companies pumped 13.05 million barrels per day out of the ground. 

But it wasn’t the amount of oil output we should be shocked by. Remember, our upstream operators had hit 13 million barrels per day just prior to the COVID pandemic and were poised to push it even higher. 

The more impressive feat was that U.S. drillers accomplished this by doing more with less… much, much less. 

Perhaps the biggest red flag over the past few years for us has been the long, steady decline in the rig count. The shale boom’s biggest weakness has always been the steep decline rates associated with those wells.

Simply put, companies had to drill at a frenzied pace to not only offset the sharp declines, but also grow production. 

Keep in mind that we’re talking about huge chunk of U.S. oil production — roughly 70% of that 13 million barrels per day comes from just one of four tight oil regions!

So you can understand why someone would be worried when they see the U.S. rig count fall by more than 152 rigs year over year. 

The fact that we’re at record production levels right now is nothing short of a miracle… or is it? 

Few investors understand that the game has changed in the U.S. oil industry; it’s no longer about drilling at a feverish pace, fueled by mountains of debt. 

Today, the winners in the U.S. oil patch are the ones doing more with less. These companies have become incredibly efficient at drilling into tight oil plays like the Permian Basin. 

The EIA hinted at this last August in its Short-Term Energy Outlook when it mentioned that well productivity has offset the decline in active rigs. 

That’s the secret. 

Having billions of barrels of recoverable oil beneath your feet is no longer enough. What really counts is how efficiently you can extract that oil. 

Fortunately, that’s where we’re a step ahead of the investment herd. Recently, my readers and I have targeted three must-buy oil stocks right here at home that are still trading under Big Oil’s radar.  

Now there’s only one real question left for you…

How profitable will 2024 be for you?

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.