Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Crude Oil Boom Reaches Tipping Point

Commodities / Crude Oil May 15, 2014 - 08:06 PM GMT

By: Investment_U

Commodities

Sean Brodrick writes: The tsunami of U.S. petroleum production has been underway for several years, but last month it reached a tipping point.

Global oil production plunged in March thanks to steeply lower OPEC output... while America's production soared to a 26-year high.


This massive shift in energy supply has huge implications for your portfolio.

Consider...

Our Exports Are Now Double Our Imports

U.S. exports of gasoline, diesel and other petroleum products jumped to a record 4.3 million barrels per day (bpd) at the end of last year, according to the Energy Information Administration (EIA). That's more than twice the 2.1 million bpd of petroleum products that the U.S. imported.

As a result, total U.S. net imports of energy declined last year to their lowest level in more than 20 years!

In fact, total energy imports fell a whopping 9% last year alone.

Thanks to hydraulic fracturing, U.S. oil production set a 26-year record in April, averaging 8.3 million bpd. Fracking has reversed a 40-year decline in crude oil output in just 5 1/2 years.

And it's nowhere near over. The EIA forecasts that the U.S. is on track to produce an average 9.2 million bpd in 2015. That's 11% more than our most productive month since 1988. That's average monthly projection for the entire year. And if the rate of growth stays the same, we could be producing closer to 10 million bpd by the end of 2015.

And guess who's going in the other direction?

China's Thirst for Oil Is Growing

China's daily use of crude oil shot to a new record in April. That means China had to import more oil - about 6.81 million bpd - last month.

We don't sell China a lot of oil... yet. America sold China a total of 47.3 million barrels of oil last year, according to EIA data. But that was a jump of nearly 200% in just five years.

There are some safe ways to play the oil boom. For example, the Market Vectors Oil Services ETF (NYSE: OIH) and the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE: XOP) are up 17% and 24%, respectively, the last 12 months.

But the biggest profit opportunities will come from select refiners, energy producers and oil services companies. David Fessler and I have alerted our Oxford Resource Explorer subscribers to seven must-own energy companies, and we're about to add two more. (Learn how to join us by clicking here.)

America will be an energy superpower in the 21st century. You'd better come along for the ride, or get left in the dust.

Good investing,

Sean

Source: http://www.investmentu.com/article/detail/37443/oil-boom-tipping-point

http://www.investmentu.com

Copyright © 1999 - 2014 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

© 2005-2022 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