Does Your Portfolio Need Some Energy?

Is Your Portfolio In Need Of Some Energy?

In recent months, oil and natural gas have been getting headlines, as the U.S. has slowly climbed the ladder becoming one of the leading producers of oil in the world.  While these new discoveries aren’t going to bring the cost of oil back down to a $1 a gallon, there are endless ways the energy boom in the U.S. could open doors for investors.

U.S. Oil Production Is Increasing

energy and oil productionThe U.S. is currently the fastest growing non-OPEC oil producer, production has increased to 7 million barrels a day, up from 5.7 million barrels/day in 2011. Most of the new oil supply is coming from land based sources, which are a lot more costly to extract than water-based oil sources.  According to Ted Davis, the manager of Fidelity Select Natural Gas:  “Companies need $85-$90 a barrel for capital investment to grow in these regions.”  However, with all of the attention the land-based oil producers have been garnering, there is a real neglect of offshore drilling opportunities.  For investors, there is tremendous potential for expansion in both off-shore and land-based opportunities

The BP Oil Spill Decreased Off-Shore Oil Expansion

Every since the BP oil spill in 2010, the focus has primarily been on land-based drilling.  Recently, the amount of oil rigs in the golf has gone back up to around 53 rigs, which is where they were at pre-oil spill.  Off-shore exploration is expected to increase, which in conjunction with the land-based oil resources could really bolster oil production in the next several years.

There Is Tremendous Investment Opportunities In Oil And Energy

As the supplies of oil and natural gas are increasing there are many industries set to benefit including chemicals, railroads, and production companies.  As an investor now is the time to get involved before these industries take off.  If you haven’t yet made room for energy in your portfolio, now may be a great time to consider it.  Speak to a Redhawk Financial Advisor today about energy stocks and other companies surrounding the production of oil and natural gas, to see if you could benefit financially from the current energy boom.

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