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 publications.
Just think of all the times you’ve cringed as someone’s obnoxious, high-pitched cell phone goes off repeatedly in a quiet theater…
For me, it wasn’t a packed crowd of movie-goers that gave me a few dirty looks as my ringtone sounded.
Because of all the places my phone decided to ring, it was just as I moved onto a drilling rig in South Texas.
Fortunately, I was quick to answer it.
Unfortunately, my colleague on the other end didn’t lift my spirits…
It was mid-week, and I knew some bad news was on its way.
“Oil just toppled, natural gas is spiraling down the drain. Even silver is continuing its descent.”
By the time I hung up, one of the guys from the rig was standing next to me. When I told him that crude just fell below $100 a barrel, he simply shrugged.
The news hadn’t bothered him one bit… And why should it?
After all, we were standing in the middle of one of the hottest oil plays since the Bakken emerged several years back.
And here in the Eagle Ford play, things were on the up-and-up.
It’s the reason CNOOC shelled out billions of dollars last year for a stake in the area.
In March, KNOC (Korea National Oil) ponied up a billion and a half for a one-third stake in Anadarko’s Eagle Ford interests. That deal was valued at nearly $16,000 per acre — the highest amount paid to date.
And they’re not the only taking notice of this opportunity…
Another Way to Invest in the Eagle Ford
Let’s face it: It’s easy to be long on energy. There’s simply too much potential at stake.
Sure, we can find the best and brightest drillers out there — which is why I was on that rig in the first place.
But when it comes to the long term, nothing beats infrastructure.
Kinder Morgan, for example, announced on Thursday it would spend $855 million for PetroHawk’s gas-gathering pipelines in the Haynesville.
A few days before that, Valero Energy Corp announced plans to build a 50,000 barrels/day oil pipeline from the Eagle Ford to its Three Rivers refinery. In the release, the company said it expects to triple the amount of Eagle Ford crude processed at the refinery.
And as usual, patience truly pays off in this sector:
Of course, these infrastructure plays are just one way to play energy… Below you’ll find several more opportunities for profit.
Enjoy the weekend
Editor, Energy and Capital
CNN’s Instant Millionaires: Taking Advantage of 23 Years Worth of Domestic Energy
By now, you’ve undoubtedly heard about this massive source of energy underneath American soil. Editor Ian Cooper explains how our everyday neighbors are making millions from this untapped resource — including one company that oil and gas majors don’t want you to know about.
The Discovery of a Lifetime: Averting an Energy Crisis
Ever since a devastating earthquake ravaged Japan, the nuclear industry has come under fire. What they haven’t realized, however, is that the nuclear renaissance will still lives — making it the single best time to invest in uranium. But don’t just take my word for it…
Content with Mediocrity: Inflation Spares None
Not many of us take enough time to think about it. Our society has been stable and prosperous for so long, and the government has kept the middle and lower classes placated so well, the honest truth is that hundreds of millions of people are content with mediocrity.
May Day, Silver Flash Crash: Copper Drops Into Buy Range
Asian traders take a disliking to silver and gold late on Sunday. Editor Chris DeHaemer explains why investors should look beyond these two metals.
Big Oil Solar Play: Solar Is a Load of Crap!
Editor Jeff Siegel discusses Big Oil’s latest solar play.
How to Buy Yukon Gold Stocks: Is There Still Time to Buy Yukon Gold Stocks?
New discoveries of large and incredibly rich gold deposits in Canada’s Yukon Territory have sparked a new gold rush… Analyst Greg McCoach shows investors how to take advantage of what will be remembered as the first gold rush of the 21st century.
Alaska’s Peak Oil Realities: When $100 Oil Just Doesn’t Cut it
Editor Keith Kohl delves into the Peak Oil realities facing Alaska’s oil industry.
Ignore Bin Laden for 274% Gains: It’s Always Good When the Market is “Wrong”
The bin Laden news has everyone looking the wrong way… Here’s how to make 247% off this foolishness.
Top Silver Companies Increasing Production in 2011: Five Silver Stocks Set to Soar this Year
During precious metal bull markets, gold usually gets all the media attention… But as investors are quickly learning, the biggest gains go to silver. In this report, Luke Burgess discusses five of the top silver companies that are increasing production and revenue in 2011.
Top Silver Stocks Part II: Investing in Primary Silver Stocks
Metals analyst Luke Burgess offers readers the second part of his new report on silver companies that are increasing mine production and revenue this year… and beyond.
Wireless Underwater Robots: Avoid This Stock at All Costs
Today: fat Canadian moms, Chinese coal shortages, three to buy, and one to avoid at all costs…
China’s Social Network IPO: The Buying Opportunity of a Lifetime?
Editor Ian Cooper takes a look at the reasons China’s social network IPO may be the buying opportunity of a lifetime.
Cleantech’s Quiet Vindication: Osama was in Pakistan and Other “Secrets”
It was no secret Osama was in Pakistan. It was no secret Apple and Google were tracking users. It’s no secret that oil companies will invest billion in clean energy companies.