What does the word “Petroplex” mean to you?
It sounds a bit like a fancy store, right? It actually means “petrochemical complex,” and it’s home to one of the most prolific oil-producing plays in the history of the United States.
You know the Petroplex by its more formal name: the Permian Basin. The basin stretches from west Texas into the south-eastern corner of New Mexico and has been producing oil for the United States since 1921.
Now, I’m sure you’ve enjoyed cheap prices at the pump recently – we all have. The Energy Information Administration recently announced that the U.S. average retail price for gasoline was $2.74 per gallon – nearly a full dollar lower than a year ago.
The last time the average price was this low heading into the Memorial Day Weekend was 2009!
But have you ever wondered why filling up at the gas station is less painful today?
Well, you can thank the Petroplex. The Permian Basin in West Texas is is responsible for nearly one-quarter of the United States’ domestic oil production – easily making it our biggest source for crude oil. And make no mistake… two million barrels of oil a day is nothing to scoff at!
There is one little hitch, however…
The supply glut created from surging U.S. tight oil production sparked a precipitous decline in oil prices last summer. Anyone with a dime in the energy sector has felt the sting of falling share prices. In the Permian Basin, the number of rigs drilling for oil and gas has fallen to 233 – which still accounts for 35% of the total amount of active rigs in the U.S.
Yet, this extremely volatile energy market is offering something else for individual investors like us – an unprecedented buying opportunity!
Today, crude oil prices have rebounded to $60 per barrel as analysts become increasingly optimistic that our supply glut will begin to ease during the latter half of 2015.
It’s time to make your move now, or you may find yourself sitting on the sideline during the next round of gains.
And the Petroplex is the perfect place to start your search.
Until next time,
A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
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