Welcome to the Energy and Capital Weekend Edition — our insights from the week in investing and links to our most-read Energy and Capital and sister publication articles.
Yesterday, Baker Hughes released its weekly rig report.
At first glance, the news didn't appear too positive. This week, the number of rotary rigs drilling in the United States declined by eighteen. The total number of rigs drilling for oil and gas is 1721.
The uptrend is clear, and the opportunities are still open for investors...
Take a look for yourself:
As you can expect, the number of rigs took a serious hit when the market took a nosedive during the latter half of 2008.
Notice how the natural gas supply glut has taken its toll, too.
For the first time in 18 years, the number of rigs drilling for oil threatens to outnumber those for natural gas. Not since December 17, 1993, has there been more oil rigs.
And that number will continue to grow — especially if crude prices average about $90-$95 per barrel in 2011.
5 drilling stocks to own in 2011
Last week, I shared with you five shale stocks that are crushing the supermajors.
You also might want to think twice before assuming that shale drilling will slow down in 2011. The number of horizontal rigs operating in those formations has jumped 47% over the last year.
Here are five more drillers worth a second look:
Two years ago, energy investors were in a win-win situation.
Many companies — and oil producers specifically — were trading at 52-week lows. All you had to do was write down a few names, tape them to a wall, and blindly throw a few darts to make your pick...
Unfortunately, it's not that simple today.
If you're not sure where to look, here are some of the top stories that have crossed my desk during the past week:
The Future of Fracking: The Next Step for Shale Production
While the debate over hydraulic fracturing rages, one company is stands to change the game forever... and it's still flying under Wall Street's radar. Using their revolutionary technology known as “petro-fracking,” this outfit is about to take America's shale industry to the next level.
We Just Witnessed the Impossible: Profit from the Brand-New Reality of Sunless Solar
Solar power at night? This small energy stock has perfected what the skeptics dismissed as fantasy... And the best part is that it's 300% more efficient that rooftop solar panels. Read the report that started it all.
WikiLeaks: Saudi Oil Lies Exposed: Turning Our Back on OPEC
Energy and Capital editor Keith Kohl sheds light on the latest WikiLeak cables concerning Saudi Arabia's exaggerated oil reserves.
Chinese Picks and Shovels: Feeding the Resource Beast
Editor Nick Hodge tries to convey just how fast China is growing, the resources it needs to do it, and how you can profit.
Chairman Paul's First Fed Hearing: Libertarian economists take on the Federal Reserve
Analyst Adam Sharp explains why, given time, every single American is destined to become a millionaire.
Carlos Slim Catches Gold Fever: Precious Metals Help World's Richest Man Retain Title
Analyst Luke Burgess discusses Carlos Slim's new gold and silver mining company and advises investors on Mexican mining companies.
Profit from G.W.'s Sudan Peace: The Next Big Oil Boom
Editor Chris DeHaemer discusses oil production in Sudan and why East African oil companies are on his watch list.
An Egyptian Firebrand Away from $400 Oil: The Last Time Oil Quadrupled...
Editor Chris DeHaemer discusses the political situation in the Middle East, and what it means for the West... and the price of oil.
How Gold Could Save America from Nazi Theory: Keynesian Economics 101
Analyst Greg McCoach explores Keynesian economics with investors, and tells readers how the financial school of thought is destroying many of the world's economies today.
Dividend Reinvestment Plans: Using the Power of Compounding to Build Great Wealth
Editor Steve Christ explains how dividend reinvestment plans and the power of compounding are the key to your retirement blueprint.
Alternative Energy Scam: Congress Wants You to Fund their Alternative Energy Scam
Editor Jeff Siegel discusses Washington's latest bad idea.
Shale Gas Potential: The Wilt Chamberlain of Frackin'
Editor Nick Hodge discusses the rebirth of the Pickens Plan thanks to copious amounts of shale gas and improved ways to drill for it.
Enjoy your weekend,
Editor, Energy and Capital