It’s an exciting time to be an energy investor. Oil production in the U.S. is booming and as oil prices stay high, it’s easy to see a future in which U.S. oil production takes a giant leap forward. That future could yield real wealth-building profits for investors, which is why I’m going to show you where to look and how to invest in America’s exciting oil future.
The Bakken is booming, but it’s only the beginning
This past May, the Bakken set a new record for daily oil production at an average of 810,129 barrels of oil per day. That puts the play on pace to produce an average of 850,000 barrels of oil per day by year’s end. That’s a pretty big number, especially when considering the total output for the U.S. is around 7.3 million barrels of oil per day. It’s even more impressive when considering that the Bakken has only been producing large quantities of oil for the past few years.
Looking into the future, there are projections that suggest the Bakken’s production could double by 2017:
Leading the charge is Continental Resources, Inc. (NYSE:CLR), which expects to triple its own oil production over that time frame. The company is already the region’s largest producer, driller, and leaseholder. It has ambitious goals to triple production to over 300,000 barrels of oil equivalent per day by 2017. If Continental Resources, Inc. (NYSE:CLR) succeeds, it would produce an additional $20 million per day in revenue as long as oil stays over $100 a barrel. Investing in that growth today has the potential to really fuel the returns of a retirement portfolio.
Everything is bigger in Texas
While the Bakken was setting new highs, the Eagle Ford was quietly catching up to it as its average daily production sailed past 600,000 barrels of oil per day for the first time. At its current pace, the shale play has the potential to match or pass the Bakken within the next two years and it’s expected to produce about 1.4 million barrels of oil per day by 2016.
That has the potential to really drive the results of producers focused on the Eagle Ford, such as Chesapeake Energy Corporation (NYSE:CHK). The company produced an average of 75,000 barrels of oil equivalent per day last quarter, of which 65% was oil production. That production came from the company’s 650 producing wells; however, looking ahead, Chesapeake Energy Corporation (NYSE:CHK) sees the potential for 3,500 additional wells on its acreage. That means that it’s still in the early innings in the Eagle Ford, giving investors plenty future upside by investing in its stock.