The Permian Blowout Is Coming

Are we getting close to "peak Permian?" It could be closer than investors realize. Are we getting close to "peak Permian?" It could be closer than investors realize. Keith Kohl shows readers where to find the right oil stock in the prolific Permian Basin. You are receiving this email because you subscribed to Wealth Daily. [Click here]( to manage your e-mail preferences. [Wealth Daily logo] The Permian Blowout Is Coming By Keith Kohl Written Aug. 22, 2019 Look, we both know how saturated today’s headlines are over the geopolitical storm that is the Middle East. Sometimes it’s impossible to look away. Whether it’s over empty tankers in the Persian Gulf disappearing out of sight and then suddenly emerging with a full load of [Iranian crude oil](, or a battered [oil industry in Venezuela]( that has been in a deathward spiral for more than a decade. Don’t even get me started on the daily speculation over the U.S.-China trade war. Thing is, too much is lost among the gloom and doom. People start to miss the little things. For the last few years, I told you that one of the biggest hurdles for Permian drillers is getting their product to market. Easing that pipeline bottleneck has become a top priority in West Texas. So when EPIC Midstream announced that its first shipment of Permian crude was piped to Corpus Christie via its Y-grade natural gas liquids pipeline, it was a small sigh of relief for us. This pipeline will be transporting up to 400,000 barrels of oil per day while EPIC is finishing up its other three pipeline projects. All three will pipe that Permian oil straight to the port of Corpus Christie. Yet this flood of crude coming out of the Permian is coming during a period when the EIA [reported]( that U.S. demand for petroleum products has topped 22 million barrels per day recently. This $4 Stock Is Disrupting a $1.2 Trillion Industry In a few short years, every car, truck, plane, train, bus, boat, and drone could be powered by this new technology. And it's all thanks to a breakthrough in the depths of a secret Army research lab in late 2017. [Click here]( to discover the engineering breakthrough that stands to revolutionize the $1.2 trillion energy industry and the stock primed to net 1,587% gains from it! The Permian Blowout Now, when it comes to finding those investment gems in the oil sector, things aren’t as easy as they used to be. Ten years ago, we could’ve blindly thrown a dart against the wall and hit an easy double-digit winner in the E&P sector. It’s true, and my longtime readers know precisely how lucrative things were. Between 2009 and 2010, we were banking profits at a rate of nearly one every two weeks — at a 92% winning rate! Nearly all of them were double-digit winners, with several paying out as much as four to five times our initial investment. Ah, but those were the good old days, when the U.S. shale boom was young and the media had only just started to pay attention to the now-famous household plays like the Bakken in North Dakota. Over the course of a decade, we saw U.S. drillers drive our domestic production higher by an unprecedented 7 million barrels per day! In fact, crude output in the Permian Basin is poised to surpass our TOTAL PRODUCTION from 2008. The EIA is projecting that Permian production will average 4.4 million barrels per day next month. That’s 49 barrels of oil being pumped out of Texas soil every second. Turn every $2 into $2,500 I just got off a conference call with the management of a little-known $150 million West Texas oil explorer. On the call, they revealed the discovery of $185 billion worth of oil under their land. This means for every one of this company’s $2 shares you buy, you’re buying $2,500 worth of oil. This is a recipe for massive windfall profits. [Here’s my full write-up and recommendation.]( To put a little perspective on that, keep in mind that this prolific oil play — which is officially [the largest oil field on the planet]( right now — accounts for more than one-third of all the crude oil extracted within the United States today. But here’s the catch: These aren’t the good old days anymore! We’re more than a decade into the U.S. shale boom, and some investors are starting to get the Permian blues. Some people have also correctly pointed out the slowdown taking place in the biggest tight oil plays in the U.S. In the Permian alone, one prominent producer named Concho Resources has had to pull back a bit, admitting to drilling its wells a little too close to each other. Simply put, investors can’t possibly expect to see the same kind of growth going forward. It almost makes you wonder whether we’ve hit peak Permian. And yet there are still those little gems to be found. Matador Resources is one of them. Shares of this driller are not only trading at around 10.5 times its trailing earnings, but this company has a knack for churning out profits in the Permian and has exceeded analysts’ earnings consensus 11 out of the last 13 quarters. After watching Occidental Petroleum shell out an enormous amount of cash to acquire Anadarko recently, you can’t help but wonder who’s next. I suggest starting your search for that next blockbuster sale [right here](. Until next time, [Keith Kohl Signature] Keith Kohl [[follow basic]@KeithKohl1 on Twitter]( A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of [Energy & Capital]( as well as Investment Director of Angel Publishing's [Energy Investor.]( For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's [page](. [in-case-you-missed-it-banner-550]( Sometimes it Pays to Read the Small Print What would you do with a piece of $270 billion? Pay off your bills? Put a kid through college? Retire early? I trudged through thousands of pages of IRS regulations, dating all the way back to 1981, and uncovered something incredible... Hundreds of folks all over the country are collecting four- and even five-digit checks... up to 24 times a year. The American government has ORDERED regular payouts to everyday Americans like you... If you know how to ask. And it’s easy. 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