High Supply

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High Supply By Nick Hodge | Sunday, December 30th, 2012 Editor's Note: This article was originally published at the beginning of this year. It has been slightly modified, and is still as relevant as ever. Enjoy. Everything we've been telling you continues to materialize. There's a North American oil and gas renaissance under way... Foreign firms have invested more than $6 billion here since December, and the frenzy shows no signs of slowing down. PetroChina (NYSE: PTR) paid over $1 billion for a 20% stake in Shell's (NYSE: RDS) Canadian Groundbirch natural gas project. Located in British Columbia, Shell says the project can deliver 1 billion cubic feet of natural gas equivalents (bcfe) per day and will have a lifespan of 40 years. CNOOC (NYSE: CEO) paid $2.04 billion to buy Opti Canada, giving China its second foothold in Canada's oil sands. China Petroleum & Chemical, or Sinopec (NYSE: SNP), paid $2.2 billion for Daylight Energy's assets. Advertisement The Best Bakken Oil Stocks Under $10 At least 6 billion barrels of light, sweet crude oil sit in North Dakota's Bakken oil pool. But the best Bakken stocks to own are still less than $10 a share. You could make 153% or more — but you'll need to act fast... Your Special Report, "Bakken Billions: 3 Bakken Stocks Under $10 for Triple Digit Gains," is waiting. Click here to get your FREE copy of this groundbreaking investment report.  High Supply These abundant new finds of shale oil and gas have given temporary reprieve to the supply/demand picture. In 2012, OPEC oil production hit a three-year high. It produced 30.7 million barrels per day (bpd) in December 2011 and 30.9 million bpd in January — both above the 30 million bpd target agreed upon. They aren't the only ones increasing production... The Energy Information Administration says total crude and liquid fuels production is expected to grow by 1.4 million bpd this year. OPEC will be responsible for 900,000 bpd of that growth, but the rest will come from the rest of the world, presumably from Canada and the U.S. What's more, demand is supposed to grow by only 1.3 million bpd this year, meaning we're in for a short-term supply glut. Same goes for natural gas, where plentiful shale supplies have forced prices down below $2.50 per thousand cubic feet (tcf) — the lowest prices in a decade. (They're now slightly higher at $3.20, but still historically low.) This means investor gains are more likely to come from drillers and service companies than from the actual commodities themselves. We've identified companies you should be looking at if you want to profit from this continued boom. And we've discussed plenty of other ways to play it as well — some of which you can find in the selection of this week's coverage, below. Call it like you see it, Nick Hodge for Energy and Capital Buffett to Share the Wealth in 2013: World's Most Prolific Investor has Set YOU Up for Monster Gains Warren Buffett's reputation as the world's greatest investor means companies actively seek out investments from the Oracle of Omaha. And once a company gets the "Buffett Seal of Approval," the stock price inevitably rises... Year-End Tax and Financial Advice: Preparing to Invest in 2013 It's not until you're managing your entire financial life — not just buying stocks — that you can truly maximize your wealth-building potential. So to help start off the New Year on the right fiscal foot, here are a few things you should consider... 4 Days Until Basel III: 11 Countries Will Go Basel... Christian DeHaemer sends a final memo about what Basel III means for gold — and your wealth — just four days before these banking rules go into effect. Staples to Launch First Chain 3D Printing Service in 2013: How to Play This Growing Trend This year was a great year for 3D printing technology... but next year promises to be bigger, better, and more profitable. With major office supply chains getting in on the action, here are the stocks you will want to own to pocket the fattest gains from this trend. Say Bye-Bye to Gun Rights, Habeas Corpus: Insiders Get Rich While You Get Stomped On The government is bearing down on citizens, imprisoning us at the highest rate in the world, coming after our rights, and militarizing local police forces while simultaneously letting their pals get away with heinous crimes. Pay Cut!: Here Come the Cuts... No matter what, you will be receiving less money in the future due to entitlement cuts: a look at the effects of a popular proposal. A Brief History of Oil: Before Captain Drake, There was Grok the Caveman Brian Hicks, author of Profit from the Peak, gives a brief history of oil that begins before the first-ever oil well. Outlook 2013: The Biggest Fortunes are Made When the Economy is at its Worst While most people panic as economic destruction looms, the world's most astute (and wealthiest) investors all do one simple thing: They buy, buy, buy... and then they buy some more. I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles North American Oil Production On the Rise Increasing Oil Production in North Dakota OPEC Surrenders Recently... Before Captain Drake, There Was Grok the Caveman Preparing to Invest in 2013 Buy Now! Energy and Capital's Weekend Edition Will Natural Gas Kill the Electric Truck?

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