Is Fracking Technology Using Up the Last of the Oil?

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http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil Is Fracking Technology Using Up the Last of the Oil? Four years ago we wrote to invest in oil shale or rather companies that use fracking technology to extract oil and natural gas from these deposits. We suggested that one look at investment in sustainable fracking technology. Recovery of petroleum from oil shale deposits has allowed the USA to reduce its reliance on foreign oil to the lowest level in more than twenty years. Today the USA imports forty percent of its oil, down from sixty percent just a few years ago. If predictions hold true the USA will continue to increase oil and gas production from fields in both the South and North of the country. All of this is possible because of the technology that allows oil and gas extraction from oil shale deposits. Before you decide to invest in oil shale consider just how to do it. There are exploration companies, drilling companies, big oil companies that refine and sell petroleum products, oil cleanup crews, and companies that make the robots that work a mile down in the sea to fix things. In short there are lots of ways to invest in oil shale and lots of profits to be made along the way. And despite a supply glut and lower oil prices there are still companies making money by extracting oil and natural gas from oil shale formations. But, there may be a fly in the ointment. The easy supplies of gas and oil were extracted from US formations years ago. Now they are going after hard to extract resources using advanced technology. And they are working on what appear to be the last reserves. Investopedia wrote about this issue and says that oil stocks may gush big losses.

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$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil Four years ago we wrote to invest in oil shaleor rather companies that use fracking technology to extract oil and natural gas from these deposits.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil We suggested that one look at investment in sustainable fracking technology.$

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$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil Recovery of petroleum from oil shale deposits has allowed the USA to reduce its reliance on foreign oil to the lowest level in more than twenty years.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil Today the USA imports forty percent of its oil, down from sixty percent just a few years ago.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil If predictions hold true the USA will continue to increase oil and gas production from fields in both the South and North of the country.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil All of this is possible because of the technology that allows oil and gas extraction from oil shale deposits.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil Before you decide to invest in oil shale consider just how to do it.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil There are exploration companies, drilling companies, big oil companies that refine and sell petroleum products, oil cleanup crews, and companies that make the robots that work a mile down in the sea to fix things.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil In short there are lots of ways to invest in oil shale and lots of profits to be made along the way.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil And despite a supply glut and lower oil prices there are still companies making money by extracting oil and natural gas from oil shale formations.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil But, there may be a fly in the ointment. The easy supplies of gas and oil were extracted from US formations years ago.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil Now they are going after hard to extract resources using advanced technology.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil And they are working on what appear to be the last reserves.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil Investopedia wrote about this issue and says that oil stocks may gush big losses.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil Fears that the Permian Basin is drying up sooner than anticipated has sent the stocks of major U.S. oil producers tumbling.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil Concerns over America’s fastest- growing oil field, where almost half of the rigs currently drilling in the U.S. are located, arose as one of the Basin’s major players unveiled some disconcerting news at the beginning of this month.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil The news is that oil wells in the Permian Basin are producing higher and higher percentages of natural gas and propane and lower percentages of oil.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil This typically happens as the reserves in an oil field are running out.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil Companies whose stocks were hit by this news were Pioneer Natural Resources Co. (PXD) whose earnings report contained this information$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil and both Parsley Energy Inc. (PE) and Concho Resources Inc. (CXO) which are also major players in the Permian.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil Is fracking technology using up the last of the oil?$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil If so this is a major blow to investors in fracking operations.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil That is because this is a higher tech and more expensive way to recover oil and natural gas and thus these wells need to have a decent life expectancy in order to eventually turn a profit.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil If these were the only supplies in the world the law of supply and demand would kick in and drive the price up as supplies dwindled.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil But there is currently a worldwide oil glut and lots of producers waiting in line to sell oil even at today’s low prices.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil When to buy oil tocks is when prices are down and in advance of a greater demand for oil.$

$http://profitableinvestingtips.com/investing-tips/is-fracking-technology-using-up-the-last-of-the-oil But if fracking technology is using up the last of the oil investors need to be careful which companies they buy based on their prospects for recovering oil into the long term future.$

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http://profitableinvestingtips.com/forex-trading/what-are-the-unique-risks-associated-with-foreign-investments What Are the Unique Risks Associated with Foreign Investments? In our last two articles we asked why aren’t you investing offshore and wondered about a coming European economic boom. But if you are thinking of putting your money to work outside of the USA, what are the unique risks associated with foreign investments and how can you avoid them? Investopedia writes about the three biggest risks that international investors face. These are transaction costs, currency risks and liquidity risks. The Cost of Investing Offshore Likely the biggest barriers to investing in international markets are the transaction costs. Although we live in a relatively globalized and connected world, transactions costs can still vary greatly depending on which foreign market you are investing in. Brokerage commissions are almost always higher in international markets compared to domestic rates. In addition, on top of the higher brokerage commissions, there are frequently additional charges that are piled on top that are specific to the local market, which can include stamp duties, levies, taxes, clearing fees and exchange fees. Currency Fluctuations and Worse When investing directly in a foreign market (and not through ADRs), you have to exchange your domestic currency (USD for U.S. investors) into a foreign currency at the current exchange rate in order to purchase the foreign stock. If you then hold the foreign stock for a year and sell it, you will have to convert the foreign currency back into USD at the prevailing exchange rate one year later. It is the uncertainty of what the future exchange rate will be that scares many investors. Also, since a significant part of your foreign stock return will be affected by the currency return, investors investing internationally should eliminate this risk. Buying stocks as ADR’s is a simple solution for someone who wants to invest only in foreign stocks. Otherwise you need to know how to use the Forex market to hedge your currency risk. Because currency futures, options and forwards are relatively complex for beginners an alternative might be to use a currency ETF. Of course the worst risk is if a country goes bankrupt, its currency becomes worthless and assets get frozen.

What Are the Unique Risks Associated with Foreign Investments?

Is Fracking Technology Using Up the Last of the Oil?

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