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.
We’ll call it envy.
For the last few years, Montanans have had to sit and wait patiently, watching North Dakota’s fortune soar to record heights.
And they have good reason to be jealous…
Last week, I showed you some of North Dakota’s success. The numbers don’t lie. Approximately 154 rigs are actively drilling in the state, with more than 95% of them focused on tapping into the now-famous Bakken formation.
As you know, the Bakken formation is found in the Williston Basin, and stretching across parts of North Dakota, Montana, Saskatchewan, and Manitoba.
So far, only North Dakota and Saskatchewan have taken advantage of their share of the Bakken.
For Montana, things are about to change for the better.
The Bakken infection spreads in 2011
In 2005, more than 1,300 oil and gas permits were issued. However, most of their drilling at the time was focused on shallow gas targets.
And we all know the story of natural gas prices…
The supply glut, thanks mostly to the surge in shale gas activity, has sent prices into a slump that could last years.
It felt like drillers just gave up — or at least put Montana on hold.
According to Baker Hughes’ rig count, only ten rigs are currently drilling in Montana. All are operating on the eastern border, right in the Bakken.
The last time I talked about the upcoming Montana oil boom was three months ago. At the time, only five rigs were active.
Now, you might think that ten rigs doesn’t seem too impressive. And they’re not, really. Not right now, at least.
However, also take into account the permit frenzy taking place.
Montana is expected to issue more than 300 oil and gas permits by the end of the year. In twelve months, it’s going to be a whole different story.
How to play the Bakken
The oil majors are taking notice, too: Exxon’s acquisition of XTO and Hess’s latest move to buy American Oil and Gas are just two examples.
Unfortunately, I can’t get behind the oil majors.
Some of the big players like Exxon — even with their latest purchase of XTO — just won’t make the cut. Those oil majors won’t give you the best bang for your buck.
I recommend sticking with the smaller drillers that have been perfecting their drilling and fracking procedures for years. They bring a wealth of experience to the table.
Here’s a look at several of my favorite Bakken companies, all of which will establish a strong presence in Montana over the next few years…
As always, below you’ll find the week’s top-read articles from Energy and Capital and Wealth Daily.
Enjoy your weekend,
Editor, Energy and Capital
Alaska Loses Future Oil Reserves: USGS Drops a Bomb on Alaska’s Oil Future
Editor Keith Kohl shows investors why Alaska’s future oil reserves are now in jeopardy.
Nuke Dukem: Uranium is Back
Editor Chris DeHaemer reports as the price of uranium surges and stocks double, and tells you how to play the coming nuclear boom.
The Truth About Rare Earth Supply and Demand: What the Pentagon Didn’t Study
Editor Ian Cooper uncovers why we’re still in desperate need of rare earths despite deflating bubble theories and half truths.
Your Last Flu Shot: How One Small American Biotech Company Could Bank You a Small Fortune
Editor Steve Christ highlights one small company making a breakthrough vaccine that would change the biotech sector forever.
The Aftermath of the BP Spill: Three American Drillers Leading the Charge in Our Last Oil Boom
BP’s historic blunder in the Gulf of Mexico has changed the game for America’s oil industry. Learn how you can take advantage of this investment opportunity.
Organic Food is Breaking Through: 3 Insanely Profitable Stocks that China Does NOT Control
Editor Jeff Siegel reviews three stocks that China does not control.
The Film Solar Takes Root: This Ain’t Your Father’s Energy
Editor Nick Hodge discusses several applications for thin film solar and the companies making them happen.
The Six Events That Will Drive Oil Up: The Reason Oil is Up $5 this Week
Editor Chris DeHaemer brings readers the six events that will drive oil for the next several months, and explains why it’s up five bucks just this week.
George Soros’ $32.6 million Junior Platinum Stock Investment: Soros Now Owns 9.7% of this Stock
Analyst Luke Burgess discusses billionaire investor George Soros’ recent $32.6 million investment in junior platinum and palladium company Platinum Group Metals Ltd.
Five Gold Investment Alternatives: All that Glitters is Not Gold
Analyst Luke Burgess gives investors a guide to the top five alternatives to gold investment.
Energy After the Election: Feeding at the Washington Trough
Editor Nick Hodge takes a look at the country’s energy picture after a big Republican win in the election.
Your Wallet and the 2010 Election Tsunami: The Battle for Tax Cuts Has Just Begun
Editor Steve Christ takes a look the markets, the election, and the possible end of the Bush tax cuts.