How Far Are We Willing to Go for Oil?
Energy and Capital's Weekend Edition
Welcome to the Energy and Capital weekend edition - our insights from the week in investing and links to our most-read stories from Energy and Capital and sister publications.
Let's face it, the easy-to-get oil is nearly gone.
When you really think about it, the end of cheap oil can be frightening. As oil prices remain in a $80-$90 trading range, I think a lot of people forget (whether intentionally or not) how far companies are willing to go to extract the precious crude.
If you still believe that all oil companies simply drill a vertical hole in the ground and wait for the Spindletop-like gusher, you're in for a crude awakening.
The latest tragedy on the Deepwater Horizon rig is a deadly reminder. On Wednesday, an explosion on the Horizon oil rig occurred, injuring 7 workers. Days later, rescuers were still searching for 11 rig workers that disappeared.
The fact is that companies are drilling further and deeper than ever before. Last month, Shell announced it had started production at Perdido. The Perdido Development is the world's deepest offshore drilling and production facility. Located in the Gulf of Mexico, the facility will tap into the Great White, Silvertip and Tobabgo offshore fields.
Believe me, dear reader, drilling these offshore wells is not an easy feat and can cost millions of dollars each.
And yet, the booming activity in the Gulf of Mexico is just one example. Also remember that countries are planning to drill into the rough waters of the Arctic, holding on to some vague hope that tapping the Arctic seabed will solve the upcoming energy crisis.
What most people don't realize is that decades will pass before we see one drop of Arctic oil.
Of course, you don't need to go that far to realize there's an oil boom happening in our own backyard.
You see, as companies scour the world for barrels of oil, staying ahead of the game is crucial. And right now, it's a win-win scenario for energy investors.
After calling the bottom for oil and gas stocks in March, 2009, our readers have been wildly successful trading energy. And while they were busy establishing their new positions, I was amazed to hear how others were in a panic and rushing to sell.
Then again, the next generation of oil companies have already begun preparing for the backside of peak oil.
Just like the first round of profits, we'll be right here, waiting.
Enjoy your weekend,
Keith Kohl, Managing Editor
Energy and Capital
By the way, Energy & Capital founder Brian Hicks has a few things to say about investing in oil and energy over the next few months. You can read his new insights here.
And in case you missed any of the week's top stories from Energy and Capital and our sister publications, have a look below:
Peak Oil Deniers Remain Oblivious: Even the U.S. Military is Sounding the Alarm
In my latest Energy and Capital, my readers learn how peak oil deniers are nothing more than wishful thinkers. What they fail to understand is the inevitability of peak oil. Continue reading to learn how you can profit from more than just hopes and dreams.
Banking 23 Double-Digit Winners: How to Guarantee Your Trading Success
If there's one thing I've never seen before throughout my trading career, it's the way my colleague, Ian Cooper, closes one winner after another. For Pure Asset Trader members, posting gains is like clockwork. Click here to find out how to see that kind of success firsthand.
North Dakota's Recession-Proof Secret: The Light, Sweet Oil Boom in the Rockies
Energy and Capital readers were first in line during when the initial Bakken profits were handed out. Today, with a oil demand rising and still no way to save ourselves from the peak, several small oil companies have said enough is enough. Now, the second round of profits is on its way. Find out how to get your own piece of the action before it's too late.
IEA Raises World Oil Demand Forecast: Global Oil Demand Forecast at 86.60 Million Barrels Per Day
Energy and Capital editor Luke Burgess reports on the latest news coming from the International Energy Agency. Find out how their new oil demand forecast will open up a wide range of energy investments.
The $0.64 Company Sitting on $49 Billion Worth of Oil: How to Profit from Stalin's Lost Oil...
Energy and Capital editor Christian A. DeHaemer tells you about an oil secret that could make you a small fortune. Learn how you can start building your oil wealth right now.
Baby Boomer's Alzheimer's Attitudes: Alzheimer's Attitudes Will Only Boost this Biotech Stock Higher
Wealth Daily publisher Brian Hicks weighs in on a disease feared by all Americans over the age of 55. Brian discusses one tiny biotech company is at the forefront, breaking new ground.
The Bull Market in Blue Chip Stocks: On the Trail of the Next Big Bubble
Wealth Daily editor Steve Christ follows the trail of the next big bubble, leading readers to a new round of profits in blue chip stocks.
Silver and Copper Miners ETF Launches: 2 New Ways to Play Metals
Wealth Daily contributor Luke Burgess discusses two new commodity ETFs launched by Global X Funds.