The most important aspect of predictive energy investing is keeping up with technological advancements BEFORE they go viral. These are the hints; the bread crumbs to opportunity. There was a long line of bread crumbs leading from hydraulic fracturing to the shale revolution, for those who were astute (and patient) enough to follow it. But it’s not only about getting in ahead of the technology; it’s about understanding the limits and striking a balance. Thus, those companies who put all their eggs in the natural gas basket and saw gas prices plummet, are in a worse investment position right now, than those who made sure their oil-gas assets were balanced out.
Then there is market sentiment—the most difficult to predict because bread crumbs are tossed about haphazardly, and it’s not so much a path as a maze. Thinking ahead just a bit, investors would have been able to foresee a reduction in national gas prices thanks to the shale boom, but sometimes greed is blinding. Today, there are plenty of bread crumb trails we are following for you. They lead to massive opportunity, and it’s all about getting in at the right time:
• Subsea exploration and production (the final, final frontier, and it’s a huge one)
• Analog exploration, the supercomputing and seismic magic that gets you there faster, with less risk and a higher rate of drilling success
• A future…