OPEC Revenue Cut in Half

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Saddam's Lost Oil Thanks to an epic fleecing in the oil community, you have the rare chance to get in on a cache of crude that no one (even Saddam Hussein) knew existed. There are 13.7 billion barrels of oil just underneath the surface in the last place you probably ever expected... and one small company is already pumping it out of the ground. Click here to see why this opportunity could be even better than the last one. OPEC Revenue Cut in Half By Keith Kohl | Friday, December 19th, 2014 Are you taking advantage of one of the most lucrative tax breaks there is? To use this tax break, you don't need a seven-figure bank account or friends in high places... It's one of the few incentives that can go to anyone and everyone over 16 years of age with no penalty. The only thing you really need is a driver's license and a gas- or diesel-powered car, and you, too, can take advantage of this lucrative break. Let me explain... Oil Stimulus Money According to AAA, retail gasoline prices this week averaged $2.477. That's the first time gasoline has been under $2.50 since 2009. By January, it could be as low as $2.25 for a gallon of regular. This comes at a time of the year when middle-class Americans and paycheck-to-paycheck consumers need an extra bit of cash for Christmas gifts or travel expenses so they can see friends and family. Thankfully, what some are calling the "oil stimulus" has given them just that. And that little bit of extra cash has allowed millions of people to spend more and stimulate the economy... something investors have seen in the last couple months. Advertisement Time to Buy This... The time to buy an oil or gas company drilling in a new shale formation is when: Production is just starting; Initial wells are showing great results; and The mainstream investing public knows very little about it. There's a new $1 company in the historic Petroplex formation that meets all three of these conditions. With nearly 20,000 acres of land and great initial results on its horizontal wells, it's only a matter of time before this company trades at $10. Click here for the ticker symbol. AAA also said that 98.6 million Americans will travel 50 miles or more during the holiday season, and most of them will be driving. For those who are flying, the cost of jet fuel is at record lows, too, offering a huge stimulus to airlines whose biggest expense is fuel. Check out how well Southwest Airlines (NYSE: LUV) has done while oil and gas were getting crushed... Of course, this immediate stimulus for airlines may not be passed onto customers, but shareholders have already seen the boon of low oil prices. That being said, this hasn't been a positive stimulus for everybody... OPEC Loses Half of its Revenue You and I both know that oil and other commodities have been hit hard by the oil glut and low prices. But what you may not know — given all of the misinformation out there — is that OPEC is in trouble, too. Many blogs and articles written about oil since the November 27th OPEC meeting have claimed that Saudi Arabia and Kuwait are orchestrating some ingenious chess match to save market share... When really, they're fighting to stay afloat by tossing their heavier friends off the ship. Take a look at these two graphs from the EIA. This first one shows how far and fast OPEC's own revenue is declining... The EIA projects revenue for 2014 will be around $700 billion, an 8% drop from 2013. That doesn't sound that bad... But at current prices, the cartel stands to lose nearly $400 billion in annual revenue by 2015. That's a 50% drop from 2013 levels that could seriously threaten some of the OPEC members that rely on revenue to fund social programs. The second chart shows the countries being tossed off of the OPEC ship... Saudi Arabia, Kuwait, and Iraq hold half of OPEC's revenue hostage, and when countries like Venezuela and Angola can't keep up with cheap oil prices, it's only a matter of time before the cartel has another choice to make.... Either cut production or watch its partners sink. Advertisement The True Shale Game-Changer A small energy company has replaced the infamous horizontal drilling technology with a newer, environmentally friendly method that is already pushing oil production into record-breaking territory... We cover the full story — including the name of this little player — right here. So What's Going to Happen? All of this about OPEC losing half of its revenue in two years and Russia's ruble crashing on low oil prices doesn't mean we know what will happen with oil. As much as we'd like to, it's impossible to predict how the market will move. But all common sense points to higher oil prices by the end of next June. And if that's the case, we can safely assume that most oil and gas stocks are a great bargain right now. This is especially true in North America, where fears of a shale bust have investors fleeing fracking stocks with reckless abandon. But selling and running away when these stocks are trading at their lowest level in five years is absurd. If you would've bought stocks as cheap as they were in 2009 and held onto them, you would've made a bundle. So why are people fleeing now? Are they in a panic? It seems so. I mean, oil isn't going away no matter how low prices go. Companies will always be there to drill for it so long as there's demand. That means when prices go low, it's time to buy stocks. And this time, we're buying North American. Here are three stocks I've found that are trading well below market value. I suggest you buy them, hold them, and wait for the price to shoot up again. 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 Make Money When the Market Burns Cheap Oil Buyout Snags Talisman Energy (NYSE: TLM) Crude Oil Future Demand Natural Gas into Jet Fuel Recently... Don't Get Screwed by your Electric Company! 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