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Oil Stocks That Are About to Explode

Keith Kohl

Written By Keith Kohl

Posted March 19, 2024

“How do you say, ‘Oh Shit!’ in Russian?”

At first, I thought my colleague was kidding around after asking the question last week. After all, the Russian-Ukraine war has officially entered its third year, and it seems as if the media’s attention has shifted to the Middle East these days. 

It took all of a minute before realizing what had happened. 

And you know what? 

He was right… yo t’vayu mat, indeed.

When I told you that there was a certain delusion taking place in the media regarding the oil fundamentals, I also told you to be sure you’re in the right position for the next price run-up. 

It turns out that once again — to absolutely nobody’s surprise — geopolitical volatility has reared its ugly head again. Except this time it didn’t come in the form of rebel Houthis disrupting Red Sea transit, nor did it come from the battle being waged in Gaza. 

No, dear reader, it was a Ukrainian drone strike that targeted three oil refineries deep within Russian territory. Even more interesting was that these strikes came just a day after more than two dozen drone attacks that hit Russian fuel and energy facilities. 

If you think these are insignificant targets, just keep in mind that so far Ukraine’s drones have shut-down approximately 370,500 barrels per day of Russian refining operations, which is roughly 7% of their total daily output. 

They’re smart to go for Russia’s energy infrastructure, but the consequences are already being felt globally. 

Overnight, the price of Brent crude jumped and was hovering around $87 per barrel yesterday; WTI crude is well over $80 per barrel.

But again, this is just one part of the equation… 

How many times have we been told that oil was going to crash as demand weakens in China? That delusion is finally starting to crack as reports show that China processed a record volume of oil in January and February. 

By the way, hindering Russia’s ability to export crude and product is going to force India and China to turn elsewhere for their barrels — which means they’re going to have to pay a higher price for them.

And it’s going to cause the right oil stocks to explode higher. 

Whenever we talk about U.S. oil production, I know my readers understand the reality of the situation. Remember, U.S. oil companies are being forced to get more with less. 

Let’s dive a little bit deeper into that efficiency, shall we? Because if you look close enough, you’ll find a few hidden investment gems in the oil patch

A decade ago, companies started using what’s called zipper fracturing to boost efficiency. Essentially, it’s a multi-well completion technique that companies employ by completing wells in a back and forth manner. 

And for a long time, it helped oil companies maximize their operational efficiency. 

By 2019, companies were getting about as good as they could, until Chevron decided to try something new called simul-frac. In this method, companies could have one frac crew stimulate two wells simultaneously, which resulted in lower costs and better efficiencies. 

As Haliburton puts it, you’re pumping two wells on a four-well pad perforating the other two, which allows you to complete more lateral footage in less time compared to zipper-frac operations. 

But I want you to find those hidden gems doing what others aren’t.

First take a look at an oil company named Ovintiv (NYSE: OVV). These guys have taken it a step further by testing out what they call a trimul-frac. Using wet sand from local mines, Ovintiv is able to complete three wells in a single frac spread — once again lowering costs and boosting efficiency. 

More importantly, the stock is expected to pump more than half a million barrels per day of oil and condensate in 2024 and trades at just 8.9 times its forward twelve-month earnings right now. 

If they’re right, then it’s inevitable that their new completion technique will gain prominence this year. 

However, if you think Ovintiv’s innovation is impressive, then you should check out another smaller player that’s perfecting a unique drilling technique that has already proved to reduce both time and money in their wells. 

Believe me, this is one you have to see for yourself. I recommend you take just a few minutes out of your day and get the full details behind this one for yourself.

Until next time,

Keith Kohl Signature

Keith Kohl

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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.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

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