Customer Service 1 (888) 261-2693
Advanced Search

Energy's Greatest Growth Story

By Matt Badiali, editor, S&A Resource Report
Wednesday, May 29, 2013

You're NOT too late to profit on the country's greatest oil play...
 
Longtime S&A readers know the Eagle Ford... It's a layer of rock in Southeast Texas that's rich in oil and gas. A few years back, some pioneering companies targeted this area. They had a theory that new fracking technology would allow them to economically recover oil and gas from the shale.
 
They were right. And from 2009-2010, oil production in the Eagle Ford increased by more than 14,000 barrels per day. This was a phenomenal 1,700% increase. Over the next three years, oil production rose by another 3,300%.
 
The numbers keep growing... and the opportunity for investors is still there...
 
You might be hearing that the Eagle Ford's "glory days" are behind it. But as I told you last year, the numbers more than prove otherwise.
 
Take a look at the table below. Even after years of explosive growth, production numbers keep moving higher...
 
 
Average Oil Production
(barrels per day)
Growth
(year over year)
2008
352
-
2009
843
139%
2010
15,163
1,699%
2011
128,619
746%
2012
381,317
197%
2013 (through March)
512,455
34%
Data from the Texas Railroad Commission

To put these numbers into perspective, the Eagle Ford's current daily production is roughly half of the daily oil that was produced in all of Texas in 2009. It currently accounts for 22% of Texas oil production.
 
All that new oil is increasing earnings at the biggest Eagle Ford producers. Take Pioneer Natural Resources (NYSE: PXD) and Range Resources (NYSE: RRC), for example. These companies were among the first to open the Eagle Ford.
 
Pioneer shares are up 180% from January 2010. Range Resources is up 60% over that same period. There's more upside ahead...
 
You see, we don't know the limits of shale yet.
 
The whole system of cracking the rocks and producing the oil is just a couple years old. Companies like Pioneer and Range Resources constantly innovate. The result is the rapid and dramatic increase in oil production in places like the Eagle Ford and other giant shale fields around the country.
 
This is the most exciting area in the entire oil industry right now. The trend is up and continuing to climb higher. This sector still holds enormous potential for investors. And as you can see from the share price gains of Pioneer and Range, when production surges, so do earnings and share prices.
 
There are more gains ahead for innovative producers in America's top shale fields.
 
Good investing,
 
Matt Badiali




Further Reading:

Last year, Matt showed readers an astonishing chart of just how much oil-shale plays have added to oil production. "If you listen to the doubters, you'd avoid shale companies altogether," Matt wrote. "That would be a huge mistake. During revolutions like this, huge fortunes are made." Read more (and see the chart) here: Don't Believe This Shale Oil Argument... It'll Cost You.
 
Porter Stansberry introduced the Eagle Ford to DailyWealth readers in spring 2010, when daily oil production was less than a tenth of what it is today. Find his two-part series here:
 

In The Daily Crux
Market Notes
Palladium is the best-performing major commodity over the past month… up 10%.
 
Biotech index fund XBI soars to a new all-time high… up 78% over the past 18 months.
 
Inflation-protected bonds are shifting into a downtrend… big fund TIP breaks down to a fresh 52-week low.
 
Video-game makers Activision Blizzard and Electronic Arts touch fresh 52-week highs.
Market Watch
Symbol Price
Change
52-Wk
S&P 500 1660.09 +0.6% +26.0%
Oil (USO) 33.79 +1.3% -1.3%
Gold (GLD) 133.51 -0.2% -12.6%
Silver (SLV) 21.55 -0.3% -22.0%
U.S. Dollar 84.15 +0.6% +2.1%
Euro 1.29 -0.2% +2.9%
Volatility (^VIX) 14.29 +2.1% -34.3%
Gold Stocks (^HUI) 253.38 -0.8% -40.8%
10-Year Yield 2.14 +6.5% +22.3%

World ETFs
Symbol Price
Change
52-Wk
Japan (EWJ) 11.36 -0.4% +31.6%
USA (SPY) 166.50 +0.7% +28.8%
India (IFN) 21.39 +0.9% +25.9%
Singapore (EWS) 14.00 -0.1% +25.4%
Israel (ISL) 14.55 +1.9% +20.8%
Taiwan (EWT) 13.91 +1.1% +20.4%
China (FXI) 37.16 +1.6% +17.2%
Canada (EWC) 28.04 +0.1% +12.2%
S. Korea (EWY) 57.75 +1.1% +12.4%
Russia (TRF) 14.64 +0.1% +11.7%
Lat.America (ILF) 41.86 -0.4% +7.0%
S. Africa (EZA) 61.78 +0.0% +2.9%

Sector ETFs
Symbol Price
Change
52-Wk
Construction (PKB) 20.85 +1.3% +60.3%
Media (PBS) 21.08 +1.5% +50.9%
Financials (IYF) 73.29 +0.9% +40.4%
Health Care (IYH) 104.26 +1.1% +39.4%
Biotech (PBE) 30.18 +1.7% +37.9%
Defense (PPA) 24.83 +1.1% +37.5%
Consumer Svcs (IYC) 104.84 +0.9% +34.7%
Alt. Energy (PBW) 5.60 +1.8% +36.5%
Telecom (IYZ) 26.88 -0.6% +30.9%
Water (PHO) 23.27 +1.2% +31.8%
Industrials (IYJ) 85.73 +0.9% +31.0%
Transportation (IYT) 114.26 +0.0% +27.0%
Retail (PMR) 30.98 +1.0% +26.4%
Real Estate (IYR) 71.68 -0.9% +21.1%
Big Tech (QQQQ) 74.06 +0.9% +20.9%
Insurance (PIC) 19.01 +0.1% +18.3%
Nanotech (PXN) 7.07 +1.7% +18.8%
Software (PSJ) 30.01 +0.7% +17.0%
Basic Mat (IYM) 72.64 +1.1% +16.8%
Utilities (XLU) 38.39 -1.1% +11.6%
Semis (PSI) 16.00 +1.0% +12.8%

Recent Articles