Meet the Caliph in Chief...

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Meet the Caliph in Chief... By Keith Kohl | Friday, November 1st, 2013 The start of the modern oil age can be traced all the way back to Venango County, tucked away in northwestern Pennsylvania. Now, I'm willing to bet you learned about this region back in elementary school... But if the county name doesn't ring any bells, perhaps you'll recognize the area from a more famous event: the drilling of the Drake oil well. Despite the fact that this well was only drilled to a total depth of 69.5 feet, it is considered the first commercial oil well. Make no mistake; Colonel Drake's success in Venango County kick-started the U.S. oil industry, and soon sights like the following littered the landscape. Unfortunately, Big Oil's party only lasted until 1973, roughly three years after U.S. oil production peaked at slightly more than 10 million barrels per day in November of 1970. As my colleague Jeff Siegel pointed out a week ago, that was the year OPEC took control. This marked the first major transition of power during the modern oil age, when the now 12-member oil cartel imposed an oil embargo on the United States. Things have certainly changed in the years since... Advertisement New Zealand's Bakken There's a massive shale formation found in the Kiwi nation that is so huge and untouched, it's literally leaking gas and oil... I've found two small companies that control over 5,000 square miles of prime real estate there. The time to act is now. Learn all the details here.  Meet the Caliph in Chief Ever wonder who really runs the global oil show today? Allow me to introduce you to him... His name is Abdullah bin Abdulaziz bin Abdulrahman bin Faisal bin Turki bin Abdullah bin Muhammad bin Saud (try saying that three times fast!), and as the official Custodian of the Two Holy Mosques, you're more likely to know him as the King of Saudi Arabia. I know some people will gripe that OPEC, whose members control approximately 40% of the world's oil supply, is in charge — but it's painfully obvious who's holding the reins. Have a look at their recent exports... At last count, OPEC (with the exception of two members) exported 23.8 million barrels per day during the four weeks prior to November 9th. Let's be clear: Saudi Arabia accounted for over ten million barrels oil crude per day of these exports. Of course, nearly half of that oil comes directly from Ghawar, which is still pumping upwards of five million barrels per day. It turns out that things have come full circle, with the Saudi oil empire on the brink as we stare at the next (and possibly final) stage of the modern oil industry. Only this time around, it's technology — not discovery — that'll drive the global oil complex. Tearing Down King Ab The cat was let out of the bag last July after a Saudi prince expressed his fears over a specific technology that threatens to topple Saudi oil dominance. What could possibly cause a Saudi billionaire to suggest his country diversify its revenue stream? The answer is hydraulic fracturing. Advertisement WARNING: This video is highly controversial What you're about see is a contentious report about the destruction of American wealth and taxpayer freedoms. It's all being done for one sinister reason... To suppress The Rebirth of America. See what's happening right now... and how one small step today could bring you prosperity not seen since the end of the Great Depression. Now, it's important to note that it's not simply fracking that's driving the tight oil boom in the United States. Hydraulic fracturing in the U.S. oil industry has been around since the late 1940s, and it's only the first part of the shale equation. Believe me, dear reader, the second part is just as threatening to the Saudi ruler... And it just so happens that today's shale billionaires are milking this technology for all it's worth. The Technology Shale Billionaires Milk for Easy Cash Take a look at any successful shale company's results in the last quarter, and I guarantee you'll find one striking similarity in all their filings. For these companies, it all comes down to cost. And that makes perfect sense. After all, your company can't churn out a tidy profit for shareholders unless you can economically produce the oil underground. On Tuesday, I mentioned the one axiom in shale drilling is that cost is king. You'd be hard-pressed to find a drilling team in the entire country that isn't interested in lowering the time and money it takes to drill one of their wells... And they're finding success in both with multi-well pad drilling. Go ahead, take any shale play at random, and you'll inevitably come across multi-well pad drilling as their method of choice. It's the fundamental shift taking place that we're capitalizing on right now — and these stocks are the true cash cows in the U.S. oil boom. You can bet the farm that Big Oil will be spending money hand over fist trying to buy them all out. 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 U.S. Tight Oil Production OPEC's Breaking Point How Exxon is Losing Billions on Oil Advanced Oil Drilling Technology Recently... 5 Energy Stocks to Own for 2014 Natural Gas Investments This Company Will Crumble Introducing... the 51st State of the Union The Hammer's Crash Course to Options

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