follow us like us subscribe contact us
Loading, please wait

A Perfectly Positioned Company Set to Benefit from North America’s Oil Boom

By Dan Dicker | Fri, 17 May 2013 19:31 | 0

The most compelling news of the week in the energy world was the International Energy Agency’s (IEA) mid-term report, calling for a ‘supply shock’ from North America’s increasing oil supply.

For those of us in the daily trading game, these ‘revelations’ are hardly that, we’ve been well aware of the hyperbolic growth of supply from tight oil in the US from the Eagle Ford, the Bakken and elsewhere, the growing supply from Canadian oil sands in the Athabasca, and the new and stunning deepwater finds in the Gulf of Mexico. 

So, it has been hard to translate those IEA findings into a trade that is truly ‘new’ – Bakken shares in quality E+P’s like Continental (CLR) and EOG resources (EOG) have been strong and levitating quite nicely already, as have Canadian shares of Suncor (SU) and Marcellus plays like Cabot oil and gas (COG) and EQT resources (EQT). 

What I’d like to find going forward is the stock that hasn’t yet benefited from this supply shock here in the US, not necessarily from the increased supply, but in fact from the decreasing supply in Europe and perhaps a long-term arbitrage that is being created. 

Perhaps I’ve found it in the refining space.

Here in the US, crude oil is not legal for export, yet refined products are.  With an increasing supply of crude coming on line and a demand profile unable to soak up the increase of refined…

To read the rest of this article Start a FREE subscription to our premium publication

Oil & Energy Insider - 30 day Free trial

30 day Free trial
A FREE Subscription Includes:
  • Investment advice normally reserved for hedge fund clients.
  • Market & sector research not available anywhere else.
  • Strategic advice from corporate & military intelligence analysts.
  • 9 Weekly Investment / intelligence reports.
  • Full access to all previous reports.
  • 30 days free trial.
Get FREE access to our research for 30 days

An essential resource for all investors in the energy sector whether you're a trader, fund manager or individual investor - this inside look at the energy markets is unlike any other report or service currently available.

About the author

More recent articles by Dan Dicker

Fri 21 November 2014
Winners And Losers Of $80 Oil, Part IV
Fri 14 November 2014
US Shale Winners And Losers – Part Three
Fri 07 November 2014
US Shale Winners And Losers – Part Two
Fri 31 October 2014
US Shale Winners And Losers
Fri 24 October 2014
Oil Price Recovery Will Be Slow, Steady And Painful