The Situation Room: Determining Where Oil Prices Should Be Going

The Situation Room: Determining Where Oil Prices Should Be Going

by | published March 18th, 2019

Happy Monday, everyone. The oil and energy markets are as busy as ever these days, and as I prepare to head out to Delray Beach, Florida, for the annual Black Diamond Convention, there is much to keep me busy as well.

In addition to my ongoing work with my oil price algorithm (more on that in a moment), I’ve been keeping a close eye on production in the Permian Basin, as well as other energy developments like battery storage.

So, without further ado, here are the top two of my top four situations I’ll be working on this week:

1. Algorithmic Indicators

This week, I will be tweaking the new trading algorithm I developed. I discussed my process last month in Oil & Energy Investor.

Now, in order to work with the algorithm, I will be running it through another series of test applications in separate segments of the energy sector.

If it provides a verifiable trend indicator (to be explained when the formal approach is unveiled), I may finally be able to use the formulas to predict investment upsides, identifying investment targets early… and we are off to the races.

2. The Expansion of Crude Oil Exports

In addition to algorithmic experimentation, I will be examining whether the ceiling in U.S. crude oil exports can be expanded.

In about 18 months, new port and delivery infrastructure in Corpus Christi on the Texas Gulf Coast will substantially increase the amount of U.S. produced oil going into the global market. Moving additional production abroad will allow American operating companies to increase domestic production without depressing the price of West Texas Intermediate (WTI), the benchmark rate used for futures contracts written in New York.

Our Declaration of Energy Independence – And How You Could Profit

As geopolitics continues to influence the price of oil, the U.S. continues to emerge as an energy powerhouse.

We are the top oil producer – as of September 2018, we produce roughly 11 million barrels per day – and a net exporter, bringing in millions of dollars every year to the U.S. economy.

The International Energy Agency (IEA) has said that within five years, the U.S. could surpass Saudi Arabia as the world’s top oil exporter.

However, despite all that, the U.S. does have a firm reliance on foreign oil.

At least for now.

If we stopped importing oil from places like Saudi Arabia, Iran, or China, we could save an additional $260 billion.

Think about that. That’s $260 million that could be put into our own country’s infrastructure, and not sunk into millions of barrels worth of oil.

We could write our own Declaration of Energy Independence.

You may be thinking now, well, where would we get the oil we need then?

The answer is quite simple.

We don’t.

We create our own energy, right here on U.S. soil.

It sounds like a pipe dream, but bioenergy is a market expected to reach $42 million by 2024.

And it all starts with the landfills currently sitting and fermenting…



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