October 28th, 2014
Typically, most oil and gas investors pile into shares of production companies when the market begins to bounce after a sell-off.
When you think about it, that makes sense – on the surface at least.
After all, these “upstream’ outfits are at the top of the sequence. It’s only later that the market shifts gears down the chain to the traditional beginning of the downstream segment – refining.
And it’s even later when refined products move down to the wholesalers and retailers that move it on to the ultimate end-user, otherwise known as the consumer.
So the conventional approach is to buy the upside move in the companies that are the earliest in this process. The simple reasoning runs, you can’t refine a product that isn’t available.
Yet, as recent experiences have proved, that’s not always the case.
In fact, the best performers after a plunge are found elsewhere…
October 26th, 2014
The shale oil revolution has done more than transform the U.S. into one of the world’s energy giants.
It’s also put money into the pockets of millions of Americans.
In North Dakota, Oklahoma, Kansas, Texas and other states where fracking is extracting “tight” oil from shale deposits, the people with new-found riches are called “shalionaires.”
They might own a family farm. Their great-grandparents might have bought what was then considered worthless land during the Depression.
One way or another, 12 million Americans receive regular royalty checks from oil and gas wells, according to the National Association of Royalty Owners (NARO).
And that’s just one of seven ways to make a bundle on energy…