Three Silver Linings in the Oil Market

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7.4 Billion Barrels of Light, Sweet Crude the Saudis Will Never Get Their Hands On... If Bakken boom stocks can see their prices increase 300%, 400%, even 500% with oil discoveries of one or two billion barrels... just imagine what a discovery of up to nine billion barrels of oil would do to a stock's price. Sure, we've already banked gains of 132% and 70% on just two of these plays already... but this run is far from over. Isn't it time you made gains like this? Click here for more. Three Silver Linings in the Oil Market By Keith Kohl | Tuesday, September 22nd, 2015 The old proverb “Every cloud has a silver lining” traces its origins back to the days of John Milton in the 17th century. It came from a lesser-known work called Comus and has since been a common source of hope for us when life is troubling. It's been a valuable exercise for me to look for silver linings in the oil market, and over the last year, it's been an increasingly difficult task. At the start of the bear market last year, many media outlets touted the silver lining of the oil glut as cheap gasoline at the pump for Americans, who have, for over a decade, raged at the ever-increasing price of retail gas blends and diesel fuel. I can't lie; I've taken advantage of these cheap oil prices. I filled up my car this morning for an even $20. However, I've been able to find some real silver linings recently, especially after a yearlong price plunge for crude... For example, back before oil dropped below $100 per barrel, I had been dying to make another big Bakken oil investment, another pick to surge over 500% like one of my picks did when the fracking boom was just hitting its stride. But for years, as you know, oil was simply too high to see the kind of gains I wanted, hydraulic fracturing too mainstream. To borrow from Buffett, everyone was far too greedy. Even with that in mind, however, let me show you what I mean... 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. Investment in the Bakken Slows Down To see just how bad it's become for oil stocks, look no further than Continental Resources (NYSE: CLR). At one time, Harold Hamm's drilling company was the darling of shale oil, the Bakken, and the hydraulic fracking boom. Today, though, the stock has been destroyed, and the company is in a tenuous position. One look at the chart for the stock over the last decade tells the story... You can see it all here: the dip from the recession, the incredible run of gains during the fracking boom, and the catastrophic losses at the start of the bear market are all visible. No doubt it's been a rough year for investors in Continental, which has seen its share price drop by $50 since the peak last summer. And yet there's the silver lining: You can see the stock ran up from around $10 to $80 a share after the catastrophe of the financial crisis, and now that it's down again, you can see the opportunity for it to return to highs when oil prices come back. Therein lies the rub. You see, the key for investors is being able to hit both timing and opportunity. Will Continental succumb to its huge debt burden before oil returns to normal and its shares and profits bounce back? The truth is that nobody can answer that question with absolute certainty, but I can tell you oil will go up — it all depends on who will take advantage of it. Granted, I won't be recommending Continental anytime soon, unless something drastic changes in its finances. Right now, according to Yahoo Finance, the company has just under $7 billion in debt and only $25 million in cash on hand. That's a tough situation, but luckily for us, Continental is just one fish in the Bakken pool. In fact, there are three North Dakota players with the same explosive potential today as the Bakken investment gems I found in 2009. Advertisement How Buffett's Biggest Investment Ever Went Up in Flames If you thought Warren Buffett was the savviest investor of all time... think again. A huge investment he made just a few years ago has literally exploded and is set to derail his incredible track record. Luckily for you, there's an astounding way to profit off of the disruptive trend that's sending Buffett's investment down the tubes. In fact, you could earn upwards of $738 per week thanks to this investment. Click here for access to the ticker symbol. Three Bakken Stocks Under $5 The main narrative surrounding the Bakken in investment circles these days — that it's toxic and should be avoided at all costs — is anything but the truth. Even though oil is down below $50 per barrel — it went below $40 per barrel just a few weeks ago — producers in North Dakota have found a way to remain efficient. As you can see in the chart below, oil production has remained relatively steady despite a massive drop in rigs... Yes, yes, I know there hasn't been growth, but it's to be expected with the way prices are now. And this plateau in production has coincided with the decimation of any driller near the Bakken. However, you shouldn't let this stop you. I know I'm not. While it's true that things aren't all sunshine and rainbows in Williston, North Dakota like they were about 15 months ago, it's also true that the opportunity to make money is there. I mean, if you bought at the top of the market in any industry, you'd be guaranteed to lose. Most of the time, you should be buying the bottom and waiting for the top to sell. We're in this exact situation with oil right now. That's why, not too long ago, I recommended to my Energy Investor readers three stocks from the Bakken that trade below $5. These are my silver linings, and I hope to see them eclipse some of my earlier Bakken picks in terms of gains — one of those early picks shot up over 500%. If you'd like to learn exactly why I'm confident in these stocks, I strongly suggest you click here to discover your own silver lining in this bear market. 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 Time to Buy the Bakken A Crude Awakening for the Internet of Things An OPEC Civil War Erupts Oil Contango Offers Storage Profits Recently... Will THIS Kill the Solar Industry? Doom and Student Debt Strange Things Afoot in the House of Saud Capitalizing on this "Connected Enterprise" Innovation and Energy Production Make Solar a Hit

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