With oil production soaring in the United States, shale oil stocks will be pumping out profits for years to come.
It's all thanks to huge deposits of shale oil.
At least four new major shale oil plays including the Bakken in Montana and North Dakota, the Eagle Ford in Texas, and the Marcellus in Pennsylvania and New York, may have more than 20 billion barrels each of recoverable oil.
Each of these new shale oil plays has the potential to double the total reserves we have today.
The United States will produce more than 10.7 million barrels of oil per day by 2017, the report said. That's more than any other country, including Saudi Arabia.
And even though oil prices are in a short-term swoon, the glut of shale oil is about to make savvy investors a huge fortune.
That's why you need to take a hard look at a particular group of shale oil stocks that stand to benefit most from this boom.
But first, you need to know how this came about.
Fracking Frees Up Shale Oil
In short, we have "fracking" to thank. You've probably heard of the term by now.
Fracking − injecting wells with chemicals, water, and sand to force natural gas and oil out of rock − has turned the energy markets upside down.
Fracking is freeing up enormous amounts of crude from previously unattainable oil deposits. The technology is also making some abandoned wells viable again.
But as production has accelerated in North Dakota, the Canadian tar sands, and the Rocky Mountains, oil has been piling up in the Midwest, particularly Cushing, OK – a primary storage area for U.S. crude.
As it happens, that's good news for us.
The Opportunity of Shale Oil Stocks
Inventories of US crude increased by 2.9 million barrels to 387 million barrels a week ago, the highest level since July 1990, the Energy Department reported.
This development is what's behind our investing opportunity in shale oil stocks.
You see, all that new oil has to run through pipes to get where it's going.