Blog : This Happens Next for Oil

According to British Petroleum (BP), at current usage rates, the world has 53 years of oil left until the entire planet runs dry.

At current prices, countries all over the world are pigging out, and not just for consumption.  Huge amounts of oil are going into each nation's reserve holdings.  

Months ago I told you that the world is currently engaged in a strategic petroleum reserve war.

From Malawi to Japan, dozens of countries are hoarding oil away.  Philippines, Pakistan, Russia...

For example, India has committed to quadrupling the size of their reserves, and China is building out massive, brand new facilities as we speak.

In fact, there are 79 Super Tankers speeding towards China right now, and each ship holds 2 million barrels.

US Shale Oil

Many people say, "what about all the shale oil we are finding?"   Well, I explained that the US Shale boom has been over-hyped, and it will be more of a temporary solution than a long term fix.  

Shale oil is like pricking a pin into a water balloon.  A typical well extracts half the reserve in the first year, and recovery drops off continuously thereafter.

This doesn't mean that penny stock investors can't benefit from all of this.  In fact, the rapid shale oil deteroration is actually making some penny stock companies a great deal of money.  And of course, this benefits all the investors in that particular penny stock.

The US Shale industry needs to continually bring thousands of new finds into play every year, just to maintain production levels.

Don't get me wrong - there are plenty of penny stock investment opportunities in the shale oil space, like the recent pick we made.  While everyone else is going bankrupt under the weight of these low prices, this particular penny stock has been gobbling up all the marginal players... and land claims... and management...  

The lower the oil prices, the more this penny stock absorbs them all in!

Plastic is Made from Oil

Since plastic is made from oil, even an electric car uses oil - for tires, wiper blades, any plastic in it, the vehicles to ship the parts to the machines at the assembly plant...

(Tons of great penny stock opportunities based on this, by the way!)

How Oil Prices are Generated

Earler I explained how oil prices are REALLY generated. 

Oil prices are established by speculative trades in London and Manhattan, and NOT on supply and demand like everyone else tells you.  That's why a 1/2 % drop in supply can lead to a 65% jump in oil prices.

What Happens Next

There is no substitute for oil.  I don't know about you, but I'm  never getting onto an air plane which is fueled by coal.

Many specific penny stocks will profit big, as a result.  Most of them may not.  You need to know which penny stocks to buy, and which penny stocks to avoid. 

We absolutely will see oil prices recover.  I don't know if it will be in weeks, months, or maybe even years, but oil is not going anywhere.  Right now, it's only taking a breather.

Penny Stocks and Speculative Investments

Over at PeterLeeds.com, we're keeping an eye on everything from oil prices to Bitcoin to pot penny stocks.  Basically, anything to do with speculative investments and opportunities in penny stocks.