Buy Before This Shale Rush

Forward to a Friend Having trouble viewing this issue? Click here. Refer a Friend to Energy and Capital.

Buy Before This Shale Rush By Keith Kohl | Tuesday, October 9th, 2012 You're distracted — but don't worry... You're not the only one. If you've put a dime in North American oil stocks at any point this year, you're among the many who are overstimulated by media headlines saturated with news of a resurgence in U.S. oil production. Nearly all of them have been focused on just two areas: Texas and North Dakota. The EIA's weekly oil report might shed some light as to why... The chart allows you to see a large portion of our domestic production increase stems from just three basins. Most of us will agree the Bakken and Eagle Ford have absolutely dominated the U.S. oil scene. At last count, approximately 310,000 barrels per day were flowing out of the latter. (At this pace, I believe more oil will be produced in South Texas than all of Alaska before next summer's driving season.) But the success of these two regions is distracting investors from opportunities that are only now starting show face. The question of whether or not to even look into the lesser-known shale plays has been an issue for many investors. However, the USGS recently made things easier for us... Advertisement America's Biggest Oil Discovery 152 million barrels of light, sweet crude were pumped out of this North Dakota oil field in 2011. This year, it could be 190 million barrels. It's no wonder that profits are surging for the companies that pump this oil... One $8 company will grow profits by 500% this year. And its stock price is likely to double. Click here to learn more. The Utica Shale Play When the USGS sharply cut its Marcellus estimates in 2011, it caused a large group of hopeful investors grave disappointment. Coupled with extremely low natural gas prices, most of them turned their attention west toward greener pastures. Back in April, I mentioned higher oil prices would send Marcellus drillers across the Pennsylvania-Ohio border to develop the more liquids-rich Utica Shale. Last week the USGS gave them reason to move more quickly — at least, that's evident from their latest assessment in the Utica Shale... According to the USGS, the formation holds approximately 38 trillion cubic feet of natural gas, as well as one billion barrels of undiscovered, technically-recoverable oil resources. For the record, the Utica stretches across several states including parts of New York, Pennsylvania, Ohio, West Virginia, Virgina, and Maryland. The kicker here is that this estimate is more than likely low-balling the true amount of potential barrels in the play; in 2011 the Ohio Dept. of Natural Resources pinned that number at roughly 5.5 billion barrels of oil. As companies become more efficient at producing the oil resources from the Utica, the USGS will be forced to reassess the play. Today I'd like to talk about a clear winner from this bullish USGS report. Advertisement 20,000% Returns are Peanuts Compared to This In just two short years, alert investors reaped 20,000% returns after news of Quest Rare Mineral's (QRM) colossal rare earths discovery. As unbelievable as these returns are, though, another group of investors is set to nearly quadruple them. That's because one tiny explorer is sitting on a mother lode of precious metals and rare earths big enough to supply the entire world for 100 years. The Calgary Beacon calls it a "super-mine with the potential to generate billions of dollars in wealth for generations to come." Developments are moving fast... Here's how to get in.  Buy Before the Herd One cliché holds true when it comes to these emerging shale plays: Size doesn't matter. Don't believe me? Just ask a few of my Energy and Capital readers how they fared with companies like Brigham Exploration, Petrohawk, and even XTO Energy... Each one of those little companies was part of multi-billion-dollar deal with major oil companies. And the same will hold true for the Utica. A list of of the biggest Utica operators is a veritable who's who in the U.S. oil industry. All the main players want a taste, like ExxonMobil — which became the largest natural gas producer in the United States after their XTO buyout — Anadarko Petroleum, and Chesapeake Energy. And yet, one small driller has outperformed all of those larger companies... As you can see, profitable opportunities don't have come from major producers: Don't let the media's spotlight overshadow emerging investment opportunities. By the time the herd learned about North Dakota's oil boom, early investors had moved on to the Eagle Ford. When they finally caught wind of that shale play in South Texas, it was thanks to those billion-dollar buyouts. Their attention has always been focused on the biggest fish in the pond... And because of this, they're overlooking the plain fact that smaller companies, like Rex Energy, are drilling in the Utica's sweet spot in Carroll County, Ohio. Bottom line: Play it smart — and play it early. On Friday, I'm going to show you another sorely overlooked area of our oil sector... After years of being neglected by the market, we're about to see a serious upside explosion for all involved. Until next time, Keith Kohl @KeithKohl1 on Twitter A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.   I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles OPEC's Promised Land Africa's Latest Gusher Avoiding the Green Hype Is America in Decline? Recently... Energy and Capital's Weekend Edition Is This a Losing Bet in Energy? The Tenth Amendment is Toilet Paper You Heard It Here First The Only Sure Bet in Energy

This email was sent to ignoble.experiment@arconati.us . You can manage your subscription and get our privacy policy here. Energy and Capital, Copyright © 2012, Angel Publishing LLC, 1012 Morton St, Baltimore, MD 21201. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription.