Are you ready to invest in conventional oil company stocks or alternative energy company stocks or do oil companies jumping into the shale formations such as the Bakken and Eagle Ford Shales interest you? What about oil refining companies or oilfield services companies?
Mutual funds that specialize in oil company stocks , may be your best oil investment if you are as cautious as I am.
Some investors will make money from the oil and energy company stocks! It may as well be you!!
Breaking News - Oil And Energy Companies !
Recently, several items of significant importance to oil & energy investors have occurred. These new items are of such significance that, because of them, the energy crisis may be overcome! Thank God Oil 101 is still applicable!
1. Activity in the Bakken Shale Formation of North Dakota has become red-hot as word of the immense size of oil contained in the Formation has become better known. Oil companies are now flocking to North Dakota to work on the prolific Bakken Formation. Higher oil prices and improved drilling technology (horizontal drilling and fracturing) now allow the oil to be recovered profitably. For more details on some of these oil companies involved, see Small Oil Company Stocks and Bakken Oil Companies
2. Several giant oil fields have been discovered offshore of Brazil by Petrobras and associate companies. The estimate of up to 30 billion barrels (and possibly more) would make this one of the largest oil fields in the world. The oil lies deep offshore under a mile or so of salt so recovery will be difficult. But oil prospecting in offshore Brazil is getting hot!
3. The recently-discovered massive natural gas field - the Haynesville Shale Formation and other shale formations around the U.S. - are being rapidly developed. If early promise proves correct, these shale formation natural gas fields could have a major impact on solving the energy crisis.
4. As other "experts" blather nonsense - and the U.S. government squanders billions to subsidize the corn ethanol scam, a pioneer of the oil patch - T. Boone Pickens - has come forward with a specific Pickens Plan to combat the oil shortage. The Pickens Plan proposes using our abundant natural gas as a bridge fuel while, at the same time, developing wind energy (windmills) and other alternative energy supplies. And Pickens is putting his money where his mouth is.
5. To counter the mostly good news of the above items, a very pessimistic cover article appeared in Time Magazine in 2008. The article casts doubt on the wisdom of using ethanol and biofuels as alternative energy sources. This article is so impressive that it caused me to change the way I look at "peak oil" and "alternative energy". The article also makes the above-discussed discoveries of giant shale oil fields (Bakken and Haynesville shale Formations) and offshore Brazilian oil look that much more important... since we desperately need new crude oil sources until we can develop alternative energy sources!
A special note on the shale formations that are being developed for natural gas and oil production. The technology is new and is advancing every day. In regards to natural gas from shale, I expect natural gas produced from shale formations will soon virtually dominate the natural gas market. Why drill 5 miles deep into the Gulf of Mexico, with its potential for destructive hurricanes and spills, when you can find massive amounts of natural gas (and oil) in the shale formations in more friendly environments onshore.
My present outlook for the energy crisis and for oil & company stock investing is as follows:
Peak Oil may still be on the way but the arrival of Peak Oil has been delayed for years (if not decades) by significant improvements in drilling techniques and discovery of giant oil and natural gas fields (notably in the deep Gulf of Mexico, the Bakken Shale Formation of North Dakota, offshore Brazil, the Haynesville and Marcellous Shale Formations - and other oil and natural gas shale formations rapidly being developed). Significant development of certain alternative energy sources such as oil sands, wind energy, hybrid cars, LNG, etc. has also contributed. Recovery of oil from oil sands and recovery of both oil & natural gas from long-ignored shale formations are being ramped up especially fast in North America. LNG and wind power usuage are moving rapidly overseas.
In addition to the above additions to energy supplies, energy efficiency improvements are underway and have the potential to make a major impact in reducing energy demand as did similar energy efficiency improvements during past energy crises.
Despite the above rosy scenario, we will eventually run out of conventional crude oil, and there is still, as yet, no complete substitute for oil. Supplies of all the fossil fuels will continue to decline as demand increases. This is especially true for oil because of its extensive use in automobiles, trucks, airplanes, etc.
The rapid industrialization and improvement in living standards of China and India are contributing significantly to the increase in demand for oil and natural gas. Also, the one-time backward countries of the Middle-East are advancing out of the "undeveloped" ranks fast and are using more and more of their own oil. Therefore, these Middle-Eastern countries will have less oil available for export.
Stocks of conventional oil companies should be a good investment. As a diversification, the oil investor may want to consider alternative energy company stocks although caution is advised. With the increased interest in alternative energy, this stock sector is somewhat reminiscent of the Dot.com boom and bust of a few years ago. Actually, many investors have already been burned pretty badly investing in alternative energy stocks.
Twenty (20) of the large oil company stocks (examples: ExxonMobil, BP, Petrobras, Devon, Chevron, etc) are reviewed. (Recommended: Review Petrobras for discussion of their giant field discovery off the coast of Brazil)
These small oil companies are volatile but less likely to be affected by government legislation (indeed, legislation aimed at the major oil companies may, by default, reward the efforts of small independent oil companies!), and many small oil company stocks may offer good rewards as oil prices rise again.
Ten (10) of the small oil company stocks (Frontier Oil, Vaalco, EPL, UPL, etc) are reviewed.
Use due diligence since some of the smaller oil companies are speculative in nature.
For convenience, oilfield service companies, oil drilling companies, oil tanker companies, & oil refinery companies are lumped into this category. There are some great opportunities in this area but you need careful research. For example, some stocks, e.g., the oil tanker stocks, seem to be incredible bargains but my research indicates they seldom move up the way we think they should. They always appear to be bargains. A very peculiar stock group! Has their time now come?
Eight (8) of the oilfield services company stocks (Halliburton, Schlumberger, Transocean, Baker Hughes, etc) are reviewed.
The alternative energy stock companies require the most agility in your trading. For example, early investors (speculators) in the "green pill" company probably made big bucks quickly due to the TV publicity, but later investors were left in the lurch as word got out that the green pills were essentially nothing but moth balls and had no affect on gasoline mileage.
There are some good opportunities in the alternative energy company stock sector and some real scams. I would advise trading lightly. A knowledgeable broker's advice should be helpful with this group.
Nineteen (19) of the alternative energy company stocks (Archer Daniels Midland, First Solar, Sasol, etc) are reviewed.
The alternative energy stocks remind me of the Dot.com boom and crash of a few years ago. I learned some very painful lessons in that crash! But there are opportunities in the alternative energy group if you can pinpoint the right stock.
1. Bakken Shale Formation Oil. Whoever thought there could be a giant oil field in North Dakota? Estimates run from a few billion barrels to at least 24 billion barrels. How much is recoverable is the big question!
2. Bakken Oil Companies. The Bakken Shale Formation in North Dakota is the hottest oil rush at the present time and the oil companies are rushing to develop it.
3. EOG Resources, Inc. EOG, Enron spinoff, has surpaced its parent in competence and honesty.
4. Germany in World War 2. Germany fought hard in World War 2 but the US, Great Britain and Soviet Union were too strong for them.
If you are still looking for oil stock information, try keywords in the search box below, for example: Bakken Oil Stocks, Eagle Ford Oil Companies, LNG Stocks, etc.
Oil company stocks are divided into four categories - large oil companies, small oil companies, oilfield services companies, and alternative energy companies. The large oil company stocks and the oilfield services stocks are the safer investments. The speculative nature of investing in oil company stocks is noted.
This web site, titled Oil Company Stocks | Energy Company Stocks, and the information included herein, is intended to provide information only and should not be construed as investment advice. The information provided is meant to broaden your knowledge and enable you to make better investment decisions within your portfolio.
I am not registered as an Investment Advisor nor am I a certified Financial Advisor. Sometimes I give an opinion on the quality of an investment. This information is based solely on my own investment goals and investment needs and might not reflect your goals and needs and might not be an appropriate investment for your portfolio.
Please consult with your Financial Advisor or Financial Consultant before actually purchasing any of the investments discussed herein.
Last updated: 05/06/14