Forget About Fracking, the Gulf May Lead Oil Lower
As a result of the media focus on the Bakken Shale formation occupying the midwestern part of the United States, you may believe North Dakota is the center of the shale energy universe. It's true that North Dakota's energy production is growing at an amazing pace, despite its relatively harsh winters and distance from population centers.
North Dakota oil production expanded enough to make the state the second largest crude oil producer in the nation. North Dakota and the related oil boom may make for exciting news stories; however, Texas not only maintains its leading role in energy production, but may soon expand its lead in production.
The Street's energy expert, Dan Dicker, brilliantly reminds us that if you take your eyes off the gulf oil ball, you may miss out on superior opportunities that remain available. (Watch this video of TheStreet's Jim Cramer talking to Dicker about the extraordinary and new energy discoveries offshore.)
Dicker states that the headwinds suppressing the stock price of BP
Aside from the obvious usual suspects, Dicker also names secondary plays for investors to consider. What Dicker doesn't cover is the impact on oil and natural gas prices as these new discoveries come on line. Increased production in the Gulf actually provides two decidedly different investment opportunities.
Dicker does a splendid job of explaining the play with oil recovery companies, but I want to focus on the commodity play. Investors no longer need to have a commodities account to gain exposure to commodities with the advent of energy exchange-traded funds (ETFs).
For commodity investors, the impact on US Oil Fund ETF