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.
The Gulf of Mexico just can’t catch a break these days.
As if the BP disaster wasn’t enough to deal with, the National Oceanic and Atmospheric Administration’s (NOAA) Atlantic Hurricane Season Outlook, released on May 27th, put even more pressure on the region.
Here are a few highlights from the report:
the NOAA calls for an 85% chance we will experience an above normal hurricane season
14-23 named storms
3-7 major hurricanes
While it only takes one storm to make a ruckus on land, disrupting oil and gas production doesn’t take much.
Then again, we don’t even need to wait for the storms to hit…
The future of drilling in the Gulf of Mexico is cloudy at best. The Minerals Management Service — the department responsible for issuing new oil and gas drilling permits in the Gulf of Mexico — is sending mixed signals on whether drilling will be allowed to continue in shallow waters. There already is a six-month moratorium on deepwater drilling.
Prior to BP’s debacle, the Gulf of Mexico was producing about 1.6 million barrels of oil. That’s 30% of our total production.
If the U.S. government follows through with an overall ban on offshore drilling in the Gulf of Mexico, it will have a devastating effect on our energy needs.
Regardless of how environmentally upset you are over BP’s folly, the fact is that we need that oil. Without it, that’s another 1.6 million barrels of oil we’ll be begging the Saudis for… Or are we?
The spill has also created a perfect storm for certain investors. What you probably don’t realize is that the oil spill is pushing onshore drilling activity to new heights.
North America oil secret
There’s some unconventional wisdom floating around, and the herd is finally starting to catch wind of it.
While the fate of offshore drillers remains uncertain, the number of rigs drilling in North Dakota continues to grow. This week, approximately 125 active rigs are operating in the state.
Their target is the Bakken and Three Forks formation, located in the Williston Basin.
Nearly two years after the USGS released its assessment on the Bakken formation, which reported up to 4.3 billion barrels of oil were technically recoverable, it turns out that the Three Forks formation (located beneath the Bakken) could potentially double the state’s oil reserves.
In other words, each company drilling in the Bakken now has a second target on the books. And the best part is that a handful of companies are increasing their efficiency.
Unfortunately, that secret is leaking worse than the oil spill.
The good news, however, is that you can still get a piece of the action before the herd. I’ve prepared this free bonus report, giving you my favorite Bakken-Three Forks stock operating in North Dakota today.
You don’t want to sit this round out.
Enjoy your weekend,
Editor, Energy and Capital
P.S. In case you missed any of the week’s top stories from Energy and Capital and our sister publications, I’ve included them below:
Foreclosure Fortunes: The Secret to this Real Estate Mogul’s Success
Within the next two years, more than 20 million properties will be foreclosed. Right now, you can fell the calm before the storm. But you don’t have to be a victim. In this special report, Ian Cooper teaches you how to turn the upcoming crisis into a new wave of profits.
Natural Gas Stocks: Back in Play?
Energy and Capital Editor Keith Kohl explores three natural gas stocks for investors to play on a recovery.
Why $200 Oil is Closer than You Think: Last Chance to Buy oil Before the Bounce
Editor Christian DeHaemer explains why artificially low oil prices are creating a last-chance profit window for investors.
The Best Silver Stocks: Top 3 Silver Stocks Beating the Market in 2010
Wealth Daily Editor Luke Burgess gives investors details on the top three silver stocks beating the markets in 2010.
Natural Gas Emerging as Oil Alternative: The New Role of Natural Gas
Energy & Capital Editor Nick Hodge calls for natural gas to corner several niches of the energy market, including new baseload generation and fleet vehicles.
BP Oil Spill Boosts Nuclear Power: Gulf Disaster Prompts Search for Alternatives
Wealth Daily‘s Steve Christ takes a look at the BP oil spill and explains why nuclear power will benefit in the long run.
Platinum Thieves Clean Up Emissions: The Green Precious Metal
Publisher Brian Hicks shares with readers the details of an eye-opening phone call regarding palladium, the “green precious metal.”
The Impact of Electric Car Subsidies: Up to $10k in Subsidies for Electric Cars
Green Chip Editor Jeff Siegel discusses new legislation that could bolster support for electric vehicles.
Senate to Lay the Smack Down on Oil Companies: The Future is Murky for Offshore Drillers
Energy and Capital Publisher Brian Hicks comments on new legislation that could hold oil companies liable for blunders in light of the BP spill in the Gulf.