Tuesday , 19 September 2017


Shale Oil Stocks Are On The Rise – Here's Why

World oil demand is…expected to surpass 115 million barrels per day in 2025 from only 91 million barrels per day today yet production in many countries is either waning or being consumed by the producing country. [In this article I identify those countries whose production is in decline, 2 countries who have increased production thanks to unique sources and how to invest accordingly.] Words: 595

So says Nick Hodge (www.energyandcapital.com)  in edited excerpts from his original article*.

Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Hodge goes on to say, in part:

Oil Demand is Increasing in Most Regions of World

 

World Oil Demand

Oil Supply From Many Countries is Decreasing

 

Nigeria

Nigerian Oil Production

Venezuela

Venezuela Oil Production

Libya

Libyan Oil Production

Iran

Iranian Oil Production

Angola

Angolan Oil Production

That’s five OPEC nations with supply heading down and it doesn’t get any better in non-OPEC countries that were once major producers…

Mexico

Mexican Oil Production

Norway

Norwegian Oil Production

Oil Consumption of Oil-exporting Countries Increasing

 

In countries whose supply isn’t shrinking, there’s another problem: growing economies.

The New York Times reports:

The economies of many big oil-exporting countries are growing so fast that their need for energy within their borders is crimping how much they can sell abroad, adding new strains to the global oil market.

Experts say the sharp growth, if it continues, means several of the world’s most important suppliers may need to start importing oil within a decade to power all the new cars, houses and businesses they are buying and creating with their oil wealth.

Indonesia has already made this flip. By some projections, the same thing could happen within five years to Mexico, the No. 2 source of foreign oil for the United States, and soon after that to Iran, the world’s fourth-largest exporter.

It is a very serious threat that a lot of major exporters that we count on today for international oil supply are no longer going to be net exporters any more in 5 to 10 years.

To recap, many countries — both inside and outside OPEC — are undergoing supply contraction. Those that aren’t are exporting less because they’re using more internally.It’s the perfect recipe for higher oil prices, which, by the way, Goldman Sachs (GS), Barclays (BCS), and Deutsche Bank (DB) are all forecasting for this year.

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Countries Whose Oil Supply is Increasing

 

Canada (Oil Sands/Shale Oil) and the U.S. (Shale Oil)

Canadian Oil Production

United States Oil Production

Canadian oil production has been surging for years [while] American production is undergoing a renaissance. As prices rise due to falling production elsewhere in the world, rising demand [across the globe], and [the anticipated] consequences of the Iran situation, companies operating in the United States and Canada, especially in rich new shale finds, will be the main beneficiaries.

Shale Oil Stocks Outperforming Dow

 

Companies like Northern Oil and Gas (NYSE: NOG), Oasis Petroleum (NYSE: OAS), Continental Resources (NYSE: CLR), Whiting Petroleum (NYSE: WLL), Petrobakken, and more are already showing how the strength of new North American oil production is translating into financial wealth. [As the graph below shows,] even as the Dow has tacked on 2,000 points since October, it can’t keep pace with shale oil stocks.

American Shale Oil Stocks

Conclusion

 

Oil prices aren’t getting any lower and shale production isn’t slowing down anytime soon, so you need to be putting yourself in a position to profit now.

*http://www.energyandcapital.com/articles/north-american-oil-production-on-the-rise/2004

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