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Oil may have dipped back to the $75 level, but my bullish outlook remains the same. You see, one of the key bullish factors that will propel oil higher in the months and years to come is that production from giant oil fields — the ones we’ve relied on as major sources of cheap supply for past four decades — is falling rapidly. Take Mexico’s Cantarell field for example. This giant was once a 2.1 million barrels a day producer. But in 2009 this number had fallen by two-thirds, to around 700,000 barrels a day. Likewise, Russia’s Smoltlor field was also once a 2-million barrel a day producer. Today, that number is down to 500,000 barrels a day. And not to mention Alaska’s Prudhoe Bay. Production here is off more than 75% from its peak. Not a very pretty picture is it? It gets worse... By 2020 the International Energy Administration expects production from existing fields to drop by more than 25 million barrels a day. That’s almost one-third of today’s total world production. What do you think is going to happen to prices as these reliable sources of supply vanish? They’re going to increase, of course. And increase substantially. That’s why oil-related investments are a solid long-term bet for your portfolio. For my top, money-making oil plays right now, sign-up for a risk-free trial of my Resource Stock Advisor. Click here. Yours in profits, Roger Gaines |
