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300 Million Barrels of Oil or Bust

Production

Iran learned a very important lesson last week.

It’s a lesson that Venezuela has painfully come to realize over the last 10 years.

The oil you have underground is useless unless you can extract it.

Until you get that resource out of the ground and into the pipeline, you might as well forget about it. So when Iran’s president announced the country had suddenly found a 53 billion-barrel oil field, it was easy for us to call bullshit on it.

Within a day of this huge announcement, Iranian ministers quickly walked back their excitement, saying that just 2.2 billion barrels of crude can be extracted with current technology.

Lesson learned? Probably not.

But I’m not here to tease you today.

I told you I’d show you what a true oil boom is like, not just some sham announcement made over the weekend that had to be retracted soon after.

More importantly, it’s taking place where you’d least expect.

300 Million Barrels or Bust

If I were to ask you what the biggest oil-producing states were, I’ll bet a few of them immediately pop into your head.

Texas, North Dakota… these are the easy ones.

Some of you might even throw out a few names like Alaska, California, or even Oklahoma. That’s understandable considering that for decades prior to the shale boom, both Alaska and California were the second and third largest oil-producing states on the list.

Peak oil hit both of them hard, and oil output from both states has continued to decline. In Alaska’s case, oil production is reaching dangerously low levels. If the Last Frontier’s output falls below a certain point, the massive Trans-Alaska Pipeline requires a flow of at least 350,000 barrels per day during the winter season to avoid major operating issues.

In August, oil production from the North Slope averaged 368,000 barrels per day.

Tick-tock, tick-tock.

Just for a moment, I want you to close your eyes and think of what you think our third largest oil-producing state is.

Don’t worry, I’ll wait.

Ready for the answer?

New Mexico.

Out of the dozens of investors I’ve asked recently, less than a handful knew that New Mexico even produced oil!

When I told them more than 300 million barrels of crude oil will flow out of New Mexico’s wells in 2019, their eyes lit up right away.

I knew they finally saw the opportunity that the rest of the market has missed.

The Countdown Is On

Back in 2014, I remember the excitement that surrounded North Dakota’s Bakken shale.

When would the state’s oil output reach that coveted benchmark of 1 million barrels per day?

That countdown caused a media frenzy, and it finally happened in May.

Want to see what a real oil boom looks like?

Here you go:

new mexico oil production

In 2007, just as the first round of the U.S. shale boom was getting underway, New Mexico’s oil production averaged just 162,000 barrels per day.

In August, New Mexico’s oil production averaged an eye-popping 936,000 barrels per day!

This flood of oil has filled the state’s coffers, and it’s only a matter of time before drillers in the Land of Enchantment hit seven figures.

Personally, I think they’ll top 1 million barrels per day before we ring in the new year.

Even more interesting is that the market is missing another monster oil discovery right next door.

In fact, not only does one company control the ALL of the acreage in this new blockbuster oil basin, but it’s currently trading at a fraction of the price of companies like Exxon, Chevron, and major independent Permian drillers like Pioneer Natural Resources.

At stake is nearly 4 billion barrels of crude oil.

Right now, it’s all up for grabs.

You have to check this one out for yourself.

Until next time,

Keith Kohl Signature

Keith Kohl

Energy and Captial



9 Comments on "300 Million Barrels of Oil or Bust"

  1. Richard Guenette on Sat, 23rd Nov 2019 6:52 pm 

    Countries can invest in UCG (underground coal gasification), underwater mining, build artificial islands to help accommodate the ever growing world population, build causeways.

  2. Richard Guenette on Sat, 23rd Nov 2019 7:03 pm 

    Another way to increase energy consumption would be waste-to-energy (examples: landfill gas utilization, incineration).

  3. Sissyfuss on Sun, 24th Nov 2019 8:54 am 

    Another way to increase energy consumption is keep adding 83 million more humans to the Earth every year as we are presently doing. Capitalism needs customers.

  4. Richard Guenette on Sun, 24th Nov 2019 10:24 am 

    While electric cars don’t emit exhaust fumes, they do use batteries which can emit toxic fumes. Most electricity used to power electric vehicles is generated from non-renewable energy sources, which can have a negative impact on both our health and the environment.

  5. Richard Guenette on Sun, 24th Nov 2019 10:26 am 

    People have talked about the fact that wind solar, and batteries require massive amounts of copper, nickel, rare earth metals, lead, cadmium, and cobalt. Multiple times, these materials are mined in countries where there are few, if any, protections for the environment or workers.

  6. Richard Guenette on Sun, 24th Nov 2019 10:29 am 

    I’ve done my research, people.

  7. Robert Inget on Sun, 24th Nov 2019 1:00 pm 

    At Infowars.

  8. Richard Guenettre on Sun, 24th Nov 2019 4:06 pm 

    America would benefit from either a multi-party political system. The ball is in your court, Americans.

  9. Robert Inget on Mon, 25th Nov 2019 10:25 am 

    Below another case of ‘tails wagging dogs’
    This time Iran. (hundreds of protesters have been shot in past weeks)

    ANOTHER SAUDI ATTACK POSSIBEL

    Despite the buildup of U.S. military presence in the Persian Gulf, Iran may “attack again,” the chief of the U.S. Central Command, General Kenneth McKenzie told Foreign Policy in an interview.

    “I think the strike on Saudi Aramco in September is pretty indicative of a nation that is behaving irresponsibly,” Gen. McKenzie said. “My judgment is that it is very possible they will attack again.”

    The top official was referring to the drone and missile attacks on a Saudi oil field and a processing plant that took almost 5.7 million bpd of production capacity offline. At the time, the Houthi rebels in Yemen claimed responsibility for the attacks but the United States and the Saudis both claimed that the missiles were launched from Iran, although the evidence presented did not convince everyone. Now, Foreign Policy has called the attacks “Iran-sponsored”—the Houthis enjoy Iran’s financial and political backing in the Yemen proxy war.

    “I wouldn’t discount anything from Iran,” Gen. McKenzie also said in his interview with Foreign Policy. “When a nation behaves that irresponsibly, you have to be very cautious when you evaluate what they might do in the future.” He stopped short of adding any specific threats that Iran might make on the region.

    The U.S. military presence in the Gulf was boosted earlier this year, after several attacks on tankers that, again, Washington blamed on Iran but Iran rejected any involvement.

    Following the attacks, insurance rates for oil tankers carrying Middle Eastern oil through the Strait of Hormuz shot up, increasing shipping costs and swelling oil prices because of the heightened risk of passing through the Strait of Hormuz. The U.S. and the UK quickly made up a coalition to protect tankers in the Gulf. The coalition, dubbed Operation Sentinel, uses “elaborate overhead intelligence, surveillance and reconnaissance architecture” to keep track of vessel movement in the Gulf.

    “Since the [coalition] has begun over the last couple of months we have been able to move stuff through the Strait of Hormuz pretty much without interference,” Gen. McKenzie said.

    By Irina Slav for Oilprice.com

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