From The Daily Wealth
The Greatest Investment Theme of This Decade
By Matt Badiali, editor, S&A Resource Report
Thursday, August 14, 2014
It's not too late to grab a stake in the U.S. oil boom…
Yesterday, I shared my experience at the U.S. EIA 2014 Energy Conference last month in Washington D.C. In short, some of the smartest people in the industry, like Daniel Yergin, are projecting U.S. oil production could nearly double from today's levels within the next 20 years.
And that projection may end up being conservative…
As you know, new technology has unlocked vast supplies of oil in the U.S. And these technologies are still in their infancy. The oil industry is 150 years old and we've been fracking for gas for years… but cracking shale for oil is just five years old.
In conventional oil fields, oil production declines about 5% per year, and we recover about 50% of the oil in place. In shale (or "tight") oil fields, production declines 50% per year, and we recover about 5%.
In other words, we're leaving 95% of tight oil in the ground.
There are trillions of barrels of oil in U.S. shale. And as we improve our extraction methods, production estimates will continue to climb.
Our supply will soon overwhelm our existing infrastructure. And we'll need new pipelines, new ports, new refineries, and new laws to accommodate the growth.
Companies are going to spend tens of billions of dollars developing U.S. oil assets. And they are going to turn those billions into hundreds of billions, if not trillions of dollars in value.
Here are a few projects in the works…
• 2,000 new hires in the Marcellus Shale – an increase of about 1% of the total workforce.
• Global Partners (GLP) plans to build an oil-rail terminal in Port Arthur, Texas.
• ONEOK (OKE) plans to invest $785 million in gas processing in the Bakken Shale.
• Summit Midstream Partners (SMLP) will develop a new Bakken Shale oil pipeline and storage facilities.
• Newfield Exploration (NFX) will spend $1.7 billion in 2014 drilling wells.
• Whiting Petroleum (WLL) spent $3.8 billion to acquire rival Bakken oil producer Kodiak Oil and Gas (KOG).
Read more from The Daily Wealth >>
The Greatest Investment Theme of This Decade
By Matt Badiali, editor, S&A Resource Report
Thursday, August 14, 2014
It's not too late to grab a stake in the U.S. oil boom…
Yesterday, I shared my experience at the U.S. EIA 2014 Energy Conference last month in Washington D.C. In short, some of the smartest people in the industry, like Daniel Yergin, are projecting U.S. oil production could nearly double from today's levels within the next 20 years.
And that projection may end up being conservative…
As you know, new technology has unlocked vast supplies of oil in the U.S. And these technologies are still in their infancy. The oil industry is 150 years old and we've been fracking for gas for years… but cracking shale for oil is just five years old.
In conventional oil fields, oil production declines about 5% per year, and we recover about 50% of the oil in place. In shale (or "tight") oil fields, production declines 50% per year, and we recover about 5%.
In other words, we're leaving 95% of tight oil in the ground.
There are trillions of barrels of oil in U.S. shale. And as we improve our extraction methods, production estimates will continue to climb.
Our supply will soon overwhelm our existing infrastructure. And we'll need new pipelines, new ports, new refineries, and new laws to accommodate the growth.
Companies are going to spend tens of billions of dollars developing U.S. oil assets. And they are going to turn those billions into hundreds of billions, if not trillions of dollars in value.
Here are a few projects in the works…
• 2,000 new hires in the Marcellus Shale – an increase of about 1% of the total workforce.
• Global Partners (GLP) plans to build an oil-rail terminal in Port Arthur, Texas.
• ONEOK (OKE) plans to invest $785 million in gas processing in the Bakken Shale.
• Summit Midstream Partners (SMLP) will develop a new Bakken Shale oil pipeline and storage facilities.
• Newfield Exploration (NFX) will spend $1.7 billion in 2014 drilling wells.
• Whiting Petroleum (WLL) spent $3.8 billion to acquire rival Bakken oil producer Kodiak Oil and Gas (KOG).
Read more from The Daily Wealth >>
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