As anyone who has been following the energy market news over the last five years is aware, the development of shale oil extraction has opened up vast new sources of petroleum and natural gas. Previously uneconomical in comparison to oil and gas simply laying in underground reservoirs, market circumstances forced engineers to conceive new technologies to tap these reserves. Their efforts paid off on a large scale. Indeed, shale production was ramped up to levels that proved so alarming to the chiefs of the Saudi oil industry that they pushed that country into a price war against the shale producers, and one they effectively lost in the end.
Readers who head over here to this website can read a more comprehensive report on the latest shale “hot spots” where major projects are planned and even underway in their preliminary stages. However, simple logic can point investors in the right direction to make real money in the coming years from the new shale oil boom. Any market player saavy enough to understand industry trends and put the pieces of the puzzle together can figure out where investment dollars will bring the maximum return.
Because of the environmental concerns connected with shale extraction technologies such as hydrological fracking, there are new challenges to the industry. If large-scale shale production is to continue and somehow conform to requirements to minimize damage to the surrounding ecology, that means new technology will have to be developed to meet these requirements. Anyone who does a little basic research can find out which companies will be most heavily involved in such research and development. These efforts will produce new systems to equip shale oil production operations, retrofitting existing extraction machinery, and serving as the basis for new equipment to be used in the industry. The obvious conclusion to be drawn is that any company involved in producing these new systems stands to profit heavily by selling their equipment to oil companies. Therefore, investment in these particular companies holds the promise for substantial reward and the smart players will cash in big.
Shale oil production is here to stay. It follows that the peripheral activities connected with all oil production such as logistics, transport, equipment supply, and storage, stand to provide steady growth in market sector index funds. This is where a little foresight in building a portfolio in such funds will provide long-lasting benefit for investors down the line.