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Investing in Oil: The Next Big Boom hits the Bakken Formation

Posted May 13, 2008

by Ian Cooper

Baltimore — (TFN): If you thought T. Boone Pickens’ $125 oil prediction was a shock, CIBC World Markets’ chief economist Jeff Rubin is predicting $200 oil in the next five years. Oil production, says Rubin, will see minimum growth “over the next five years, edging up barely more than 1-million barrels a day over the next three years, and only half a million barrels a day between 2010 and 2012.”

Sure, the forecast goes against conventional thinking that slower global and U.S. economic growth will drag oil below $100, but anything’s possible these days. Who’d have thought we would have seen $119 oil back in 2000?

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And it’s not as if we don’t have solutions to the problem. One is to dig for oil here in the United States, including the newly estimated 4.3 billion barrels of oil that could be recovered from the Bakken shale formation. That’s a 25-fold increase compared to its initial assessment in 1995.

The Bakken, for those unaware, is the largest “continuous” oil accumulation ever assessed by the USGS. And one of the must owns is Kodiak Oil. The $20 Trillion Report delves into three others, which are reportedly up 54%, 31% and 30% with further upside.
Investing in Oil: The Next Big Boom hits the Bakken Formation

But to understand the full potential of Bakken-related stocks, take a look at what happened to companies associated with the Canadian oil sands. The same potential is hidden in Bakken-related stocks.

Since late 2003, for example, Western Oil Sands (bought by Marathon Oil) ran more than 1,500%. Since April 2003, Suncor Energy (SU:NYSE) ran from $15 to more than $110—a 633% move. And from its lowest point of 1998 to 2000, the Canadian Oil Sands Trust returned as much as 19,900%. These days, it trades at $45, a still impressive gain of 1,025% from its 1998 lows. This is the type of explosiveness we’re looking for with Bakken stocks.

***The $20 Trillion Report: USGS recently admitted, “It’s the largest continuous oil accumulation the agency ever assessed.” Today, just 470 miles from Helena, Montana, America’s greatest wealth boom is fast - and secretly - underway.

Thanks to a unique technological breakthrough, a group of scientists just unlocked the largest oil deposit in U.S. history… 503 billion barrels worth. And they can now extract it for just $16 a barrel. With oil breaking $120, news of this momentous discovery is already boiling over - at breakneck speeds. The three outfits leading the way each averaged 21% gains within the past 11 days. And they’re just getting started. To find out how each one could triple your money - this year - click here for your free report.


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Posted by Ian Cooper · Filed Under Oil and Energy 

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