The Key to Fracking Success

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The Key to Fracking Success By Brianna Panzica | Sunday, January 13th, 2013 There's no shortage of good news lately when it comes to U.S. oil production... Since the fracking boom really took off in the United States, the country has been surpassing one milestone after the next. This week production hit a 20-year high. The U.S. Energy Department announced oil production had surpassed 7 million barrels per day to hit 7.002 million barrels per day on average. North Dakota, home of the Bakken Shale, saw a 40% growth in production in the ten months through October. Texas, where the Eagle Ford Formation is located, grew production by 23%. Production will average out to around 7.3 mbpd this year, and by next year it will be at a 26-year high of 7.9 mbpd. It's clear that the Bakken is the fastest-growing of these areas. The formation is well known all across the country, and unemployment in Williston, North Dakota, the Bakken's hub, is an incredible 1%. But an abundant supply of oil isn't all it takes to go from small town to boomtown... The location needs resources —lots of them. Advertisement "There's enough oil below American soil to put OPEC out of business for good!" They said it couldn't happen... One day, the U.S. would produce enough oil to kick OPEC to the curb. That day is here — and these 3 companies are making it happen. Moving Oil One of the biggest resources any oil-producing region needs is transportation infrastructure. Oil can't just stay at the wells; it has to be moved to refineries and then to the location where it will be used. And pipelines are the best way to get the job done. They can go long distances, and they can run underground so as to not disrupt life above. But they also require lengthy regulatory processes and construction time. The Keystone XL Pipeline, figuring strongly in the presidential debates and still anxiously awaiting approval, is a prime example. TransCanada's (TSX: TRP) international pipeline was approved by Canada back in 2010, but the process of receiving a Presidential Permit from the U.S. Department of State has been a tedious one. A report from the Nebraska Department of Environmental Quality that showed “minimal environmental impacts” may force the president's hand in a decision. But even if the permit is granted in the first quarter of this year — the earliest possible — construction time could push the start-up date to as far in the future as 2015. And as projects like these are delayed, production is maintaining its rapid pace. More oil needs to move to refineries, and it will be years before it can safely rely on these slow-to-move pipelines But pipelines aren't the only ways oil can move... Advertisement Easy Income from Canada's Triple-A Rated Economy With 1.7 trillion barrels of oil and plenty of gold and timber, Canada's natural resource sector is the backbone of its Triple-A rated economy. It's also created one of the most attractive real estate markets in the world... Now there's a safe and easy way you can get in on Canada's rock-solid real estate market — and cash "rent" checks every month. One man from Ontario gets $1,638 a month. Another in Arizona gets an amazing $5,969 every month. To learn how you too can start cashing huge checks like these each and every month, click here.  All Aboard! This week, Phillips 66 (NYSE: PSX) announced it would be involved in a contract to ship Bakken crude by railroad to refineries in New Jersey. Unlike pipelines, railways are already in place; they don't require any preliminary approvals or construction time. All the companies need are contracts and proper rail cars. Phillips 66 is far from the first rail company to become involved in the Bakken. Billionaire investor Warren Buffett got into Bakken oil shipments early when he purchased the Burlington Northern Santa Fe (BNSF) railroad company. His company was able to increase crude shipments by 40% this year alone. Next year, they're likely to grow even more — even if the Keystone XL approval goes as smoothly as possible. As Jeff Siegel told you this week, railways will be the major transportation infrastructure in high oil-producing areas like the Bakken for years to come. But there are other resources that play an integral part in make fracking possible... Transportation infrastructure comes in at the end of a long line of other things that are necessary early on. And investors are still neglecting these areas. Jeff has been following two stocks in particular — both have had success because of Warren Buffett's profitable investment — that could get you a solid position in the Bakken. Don't miss an opportunity to profit from Buffett's billion-dollar investments in the oil transportation space. Good Investing, Brianna Panzica for Energy and Capital Green Collapse: The Dying Energy Sector Find out where your taxpayer dollars are really going...  2 Data Points and 3 Trends for Q1: This Changes Everything For the first time in three years, consumer credit card debt has improved for three consecutive quarters. Less debt means more disposable income. A Brief History of Fracking: Before Matt Damon, There was Colonel Edward Roberts Nobody knew it at the time, but Roberts' "Exploding Torpedo" was the birth of the modern-day shale fracturing industry... Coal's New Life Overseas: The Exiled King King Coal has been dethroned and is being ran out of America. However, coal still rules supreme overseas, and American miners are poised to make a fortune. 3D Printing Brings Manufacturing to the Masses: Everyone's a Henry Ford I've been showing you the benefits of 3D printing for some time now. The technology has existed in its current form for about five years. And it's taking off like wildfire. So are the related stocks. Buy This Stock: This Obvious Trend Could Triple Your Money Should you own this stock? Heck ya! Christian DeHaemer explains why this company is a great investment for the year to come. The Boom and Bust of U.S. Oil Investing: Oil Crisis Brewing in Alaska Keith Kohl unearths the backstory of the upcoming oil crisis brewing in Alaska's North Slope. Billionaire Says 2013 Will Be Good: We Hope So! We can almost guarantee the market will go great guns in 2013. Let me explain by taking you back two years... Warren Buffett Bakken Shale Investment: Buy This Bakken Shale Play Now! An ingenious move gave Warren Buffett the keys to a company that is now the lifeblood of the oil and gas boom. And we're buying this backdoor Bakken Shale play. I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles Who's Afraid of Peak Oil? 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