Dig all those new oil discoveries in the Americas!

bigdog posted on 10/03/11 at 12:21 PM


This New York Times article brings some real game-changing news for the energy markets. The title alone signals a big paradigm shift: New Fields May Propel Americas to Top of Oil Companies' Lists. I don't follow the oil or energy markets as closely as many active investors in the sector do, but I do watch the headlines around energy since it's so critical to the dollar's health as well as our overall economy. 

So it was news to me that so many extensive new oil fields have been recently discovered or tapped, all on our side of the hemisphere. Brazil's Petrobras (PBR) is one well-known player in the space, but they're joined now not only by traditional oil companies like ExxonMobil (XOM) but also Chinese newcomers like Petrochina (PTR), Sinopec (SNP) CNOOC (CEO) and others. CNOOC recently invested a full billion dollars in Chesapeake Energy (CHK), who have been actively working Texas shale oil fields with more unconventional methods. 

What's really interesting is that this shift topples quite a few established dynamics. Not only could it reduce the Middle East's geopolitical clout and elevate countries like Brazil, Canada and Colombia, its impact on alternative energies is an open question. Maybe this could be the transitional oil supply we were all looking for to "bridge" us to cleaner, greener fuels? (Or maybe it'll simply delay that transition, possibly disastrously so.) 

How will this new development impact global energy markets (and traders who invest in it)? 

[image: Oil Barrels by Professor of Death on Flickr]

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Don Montanaro holds no positions currently in the securities mentioned in this post. 

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Posted by bigdog on 10/03/11 at 12:21 PM

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