Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
SPX and Gold; Pivotal Points at Hand - 18th Jan 19
Fable Media Launches New GoWin Online Casino Affiliate Site in UK - 18th Jan 19
The End of Apple! - 18th Jan 19
Debt, Division, Dysfunction, and the March to National Bankruptcy - 18th Jan 19
Creating the Best Office Space - 18th Jan 19
S&P 500 at Resistance Level, Downward Correction Ahead? - 17th Jan 19
Mauldin: My 2019 Economic Outlook - 17th Jan 19
Macro Could Weaken After US Government Shutdown. What This Means for Stocks - 17th Jan 19
US Stock Market Indexes Reaches Fibonacci Target Zone – Where to Next? - 17th Jan 19
How 2018 Was For The UK Casino Industry - 17th Jan 19
Gold Price – US$700 Or US$7000? - 16th Jan 19
Commodities Are the Right Story for 2019 - 16th Jan 19
Bitcoin Price Wavers - 15th Jan 19
History Shows That “Disruptor Stocks” Will Make You the Most Money in a Bear Market - 15th Jan 19
What Will the Stock Market Do Around Earnings Season - 15th Jan 19
2018-2019 Pop Goes The Debt Bubble - 15th Jan 19
Are Global Stock Markets About To Rally 10 Percent? - 15th Jan 19
Here's something to make you money in 2019 - 15th Jan 19
Theresa May to Lose by Over 200 Votes as Remain MP's Plot Subverting Brexit - 15th Jan 19
Europe is Burning - 14th Jan 19
S&P 500 Bounces Off 2,600, Downward Reversal? - 14th Jan 19
Gold A Rally or a Bull Market? - 14th Jan 19
Gold Stocks, Dollar and Oil Cycle Moves to Profit from in 2019 - 14th Jan 19
How To Profit From The Death Of Las Vegas - 14th Jan 19
Real Reason for Land Rover Crisis is Poor Quality of Build - 14th Jan 19
Stock Market Looking Toppy! - 13th Jan 19
Liquidity, Money Supply, and Insolvency - 13th Jan 19
Top Ten Trends Lead to Gold Price - 13th Jan 19
Silver: A Long Term Perspective - 13th Jan 19
Trump's Impeachment? Watch the Stock Market - 12th Jan 19
Big Silver Move Foreshadowed as Industrial Panic Looms - 12th Jan 19
Gold GDXJ Upside Bests GDX - 12th Jan 19
Devastating Investment Losses Are Coming: What Is Your Advisor Doing About It? - 12th Jan 19
Things to do Before Choosing the Right Credit Card - 12th Jan 19
Japanese Yen Outlook In 2019 - 11th Jan 19
Yield curve suggests that US Recession is near: Trading Setups - 11th Jan 19
How Unrealistic Return Assumptions Are Ruining Your Stocks Portfolio - 10th Jan 19
What’s Next for the US Dollar, Gold, Stocks & Bonds? - 10th Jan 19
America's New Africa Strategy - 10th Jan 19
Gold Mine Production by Country - 10th Jan 19
Gold, Stocks and the Flattening Yield Curve - 10th Jan 19
Silver Price Trend Forecast Target for 2019 - 10th Jan 19

Market Oracle FREE Newsletter

Bitcoin Analysis and Trend Forecast 2019

Three Ways to Profit From the Oil Market’s “New World Order”

Commodities / Crude Oil Feb 20, 2011 - 02:11 PM GMT

By: Investment_U

Commodities

Best Financial Markets Analysis ArticleAt the moment, the Gulf of Mexico owns the title of being the largest offshore oil production area in the world.

But not for long.


Back in 2009, Petroleo Brasileiro S.A. (NYSE: PBR) – more commonly known as Petrobras – made history when it confirmed the location of a huge deepwater oil field in its Santos pre-salt basin.

Originally discovered by BG Group in 2006 and situated 160 miles off the coast of Rio de Janeiro, the Tupi field is one of the largest oil discoveries in the Western Hemisphere in the last 30 years. It’s estimated to contain as much as eight billion barrels of recoverable oil.

Brazil’s ex-President, Luiz Inacio Lula da Silva, called the Tupi field “a second independence for Brazil.”

He’s not wrong. And the story gets better, too…
In addition to the Tupi site, Petrobras also boasts the Jupiter field. Discovered in 2008, this is another huge find, located just 23 miles east of Tupi. The Jupiter field could be equal in size to the Tupi field.

In all, Brazil has a cluster of nine sites in the Santos basin. And if Petrobras keeps making new discoveries and continues to increase its output, offshore oil production in Brazil will surpass the Gulf of Mexico in less than five years.

Head east from Brazil and there’s another scenario playing out that’s trumping the Gulf of Mexico’s oil position…

Tullow Oil’s Twin Oil Discovery

Since Petrobras’ oil discoveries in Brazil, fellow oil firms like Anadarko Petroleum Corporation (NYSE: APC) and Tullow Oil (OTC: TUWOY) have announced large discoveries off the western coast of Africa.

Coincidence? Actually, it isn’t. You see, the offshore areas of certain parts of South America (off Brazil, for example) are geologically very similar to parts of West Africa (Angola, Namibia and Ghana).

Luman Sebastiao, a geoscientist for Angola state oil, commented at an OPEC meeting about the similarities: “The Angolan and the Brazilian continental shelves have various similarities, as they have been joined for a certain geological period. Angola’s sub-salt reserves could be gigantic and even as big as Brazil’s.”

He’s right. It’s generally accepted that many millions of years ago, the two continents of South America and Africa were one large land mass. If you pushed the two together, they’d fit rather nicely.

Of interest to geologists – and more importantly, to investors – is that the areas where all the oil is being discovered (the sub-salt and pre-salt regions) line up together precisely. And they boast extremely lucrative potential.

Another important aspect of oil found in either of these two regions is that it’s very light oil. That is, it requires much less refining than heavy crude, or tar sands from Western Canada, for instance. That makes it worth more in terms of how much companies are willing to spend to go after it.

The bottom line here?

The King is Dead… There’s a New Ruler in Town

The Gulf of Mexico’s reign as “King of the Oilfields” will soon be over.

Instead, it’s time to switch your attention to the tens of billions of barrels of light, sweet crude waiting to be discovered offshore in both South America and West Africa.

And if you want a good starting point to get in on the action, you could consider positions in any of the three companies I mentioned above. (In fact, in an earlier issue of Investment U I profiled Petrobras in greater detail.)

Subscribers to my energy and infrastructure investment service – The Peak Energy Strategist – are already positioned to take advantage of the explosion in oil exploration. And we’ll be adding another company to complement it in just a few weeks.

Good investing,

Source: http://www.investmentu.com/2011/February/global-oil-market-exploration.html

by David Fessler, Advisory Panelist, Investment U

http://www.investmentu.com

Copyright © 1999 - 2011 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules