[Posted on February 23rd, 2015 by Michael L. F. Slavin]
There’s no doubt about it: America is in the midst of a new oil boom. Thanks to advances in technology allowing drillers to extract more oil than ever before, the United States is once again leading the world in oil production. Meanwhile, as many oil producing nations, such as in the Middle East, are increasingly unstable as energy partners, U.S. Oil is at the beginning stages of its own oil rush. As an investor, there are a lot of indicators that the right time to move into the market is now. Knowing how to invest in oil can help you approach the market the right way.
The Oil Boom Throughout the Country
While the country is benefiting from lower prices and stable oil not affected by international factors, oil-producing states have been completely transformed by the oil boom. States sitting over the Bakken Shale such as North Dakota have experienced massive transformation, with oil producing unprecedented windfalls for those who have mineral rights to the land. While this has led to some farmers in North Dakota being upset over the change in the landscape caused by rich oil investment, overall cities and towns are seeing massive growth in the face of decline, even collapse, just a few years before. It’s becoming more important than ever for interested parties to learn how to invest in oil.
In Texas, the memories of the oil boom of the 70’s and the eventual collapse of the oil market in 1981 have been displaced by a new oil boom throughout the state, as new oil resources are leading to record extraction and production numbers. Some analysts warn, however, that a change in market conditions could be problematic: the new oil resources can cost over $70 just to extract. A drop in the price of oil could make the cost of production prohibitive.
For now, however, oil production in Texas shows absolutely no signs of slowing down. And the main player when it comes to devaluing oil, OPEC, is actually threatened at this point by the North American oil boom. Since OPEC has historically leveraged competitors in the international market by dumping oil and lowering prices, they are experiencing a shock point as American firms are now lowering the price of oil for them. The International Energy Agency (IEA) reports that instability in OPEC regions remains high, meaning the price of oil normally would be jumping substantially higher– but the oil boom is actually keeping that from happening.
What This Means For Investment
The IEA’s most recent study over the growth of the North American Oil Market predicts that by 2019 the US will be a net exporter of liquid oil. Because of instability in many OPEC regions, new investment in the domestic oil market remains bullish, and it is a good idea to research the long-term plans of oil ventures under consideration for investment. That said, there is no better time to invest in America’s new oil age than the present.
One of the most experienced firms in the industry is U.S. Emerald Energy, which provides opportunities for new joint ventures to jump in on the growing U.S. Oil Market. New ventures are growing and producing incredible returns on investment right now. While the investment future of American oil looks bright, its popularity is only set to grow, meaning opportunities will be fewer and more expensive over time. Investing now ensures getting a strong share of the market at the lowest possible price.