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2014/07/18

The Next Oil Monopoly

Before I tell you about this oil  pioneer and where his next billion-barrel target is located, let's take a second and see why adding this new shale play into the mix is so critical  for the U.S...
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The Next Oil Monopoly
By Keith Kohl | Friday, July 18th, 2014
Keith Kohl

Back in 2010, a deputy to the most powerful oilman in the U.S. once quipped at a conference in San Antonio, “We were charged with finding something that looked like the Haynesville and ended up in Eagle Ford. Good thing we went looking.”

His boss, one of the most prominent modern-day oil pioneers in the U.S., has made a habit of turning desolate patches of land into prolific oil and gas plays.

And as you might have guessed from the deputy's remarks in San Antonio, his company's CEO carved a $12 billion fortune out of the South Texas play that is practically a household name at this point.

Thing is, this guy isn't the type of person to just sit back and relax.

Rather than resting on his laurels, he's already moved on to a new, profitable chunk of shale oil real estate.

However, before I tell you about this oil pioneer and where his next billion-barrel target is located, let's take a second and see why adding this new shale play into the mix is so critical for the U.S.

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America Goes Off the Wagon... Again

Last month, British Petroleum released its annual report on world energy statistics.

Based on data from 2013, the report said the United States unseated China from the top spot in oil production growth.

In other words, U.S. oil consumption grew by 400,000 barrels per day to a total of 18.9 million barrels per day, while China’s consumption grew by 390,000 barrels to 10.8 million barrels each day.

This is the first time since 1999 that our oil consumption growth has outpaced China’s. So it isn't a stretch to say that to sustain relatively low gasoline prices (that's right, $3 is the new cheap pump price), we'll either have to drastically curb demand or generate more supply.

chart-gasoline-7-18

Notice that last year was the first year since the recession that gasoline demand in the U.S. increased over the previous year.

I'll let you take your pick as to why: the improving economy or a glut of oil supply. Both have made it all too easy for us to hop off the wagon and buy 134.5 billion gallons of gasoline in 2013.

So it's a good thing the contemporary oil baron we've been following discovered the Eagle Ford's potential.

After all, more than a million barrels per day are flowing out of South Texas on a daily basis, and that's helped push gas prices lower in early July.

And like I mentioned, this man built a $12 billion empire in the Eagle Ford, and we would do well to follow his lead...

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How to Pocket $45,560 Off His Next Big Move

His name is Ellis White, and his resume reads like the diary of the oil barons from the early 20th century.

Not only did he make a name for himself before he helped launch the Eagle Ford Shale into the spotlight, but he's also had a long career of building tiny, unknown companies into multi-million-dollar enterprises.

Now Ellis is moving onto greener pastures...

chart-pad-drilling-tuscaloosa

Above is a photo of a well pad in the Tuscaloosa Marine Shale.

Haven't heard of the Tuscaloosa Marine Shale before? Don't worry; I have a feeling you aren't alone. Stretching across parts of Louisiana and Mississippi, this emerging oil play will has yet to step into the limelight. But it will soon.

Of course, it's almost too easy to see why White's latest venture is one of the major operators and holds a sizable position in the play.

At stake is an estimated 7 billion barrels of oil, and perhaps the most lucrative part about this story is that it's still in the early stages.

Just think... what if you were able to go back to 2007 and put your hard-earned money to work in a Bakken stock? Ever wonder how it would perform against one of the supermajors we constantly read about?

Well, I'll show you...

chart clrvsBP

You can see for yourself that anyone with the forethought to bet on early Bakken drillers like Continental Resources would be sitting on lucrative gains.

That's the kind of situation we're in right now.

And to help you find out how you can get in before another multi-billion-dollar corporation buys out Ellis White's latest venture — and how you can possibly pocket $45,560 in cash — I recommend you take a few minutes to check out my latest investment presentation on this legendary oilman's latest $6 driller.

You can view the whole report here — absolutely free.

Until next time,

Keith Kohl Signature

Keith Kohl

follow basic@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.

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