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It's strange to think that just a few years ago we thought America was running out of natural gas. Worse yet, we were at the mercy of the Middle East when it came to satisfying our addiction for oil. Few saw a future where one technology would revolutionize America's energy future. Thanks to the combination of horizontal drilling and hydraulic fracturing, America is now one of the top energy producers in the world. By 2015, we are expected to be the world's top oil producer and hold that title for at least the next decade, if not longer. What's truly remarkable about this shift is that instead of filling OPEC's coffers with cash, American investors are the ones profiting off of this boom. For example, investors can profit alongside Chesapeake Energy Corporation (NYSE: CHK) as it drills for natural gas in the Marcellus Shale or Kodiak Oil & Gas Corp (NYSE: KOG) as it pursues oil in the Bakken Shale. Meanwhile, income seeking investors can enjoy the large payout fueled ConocoPhillips (NYSE: COP) production in places like Alaska or the even larger monthly distributions from companies like LINN Energy LLC (NASDAQ: LINE). These are just a sampling of the 14 energy investment ideas offered up in the following slide show.
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14 Ways to Profit From the American Energy Boom in 2014
Photo credit: Chesapeake Energy
No. 1: The Mighty Marcellus Shale
• Over the past few years, natural gas hasn’t been kind to the nation’s number two producer Chesapeake Energy. However, even it can make money drilling for gas in the Marcellus Shale.
• That’s why that shale play is the best place to go for investors looking for natural-gas stocks in 2014.
America’s premier shale gas play
Photo credit: Flickr/Nicholas A. Tonelli
No. 2: The Emerging Utica Shale
• Chesapeake Energy also has a sizeable position in the Utica Shale. However, it might not be the best way to invest in this emerging shale play.
• Instead, there are a few other top natural-gas stocks like Magnum Hunter Resources that could emerge in 2014.
The next great shale play?
Photo credit: Flickr/dok1 (top) Antero Resources (bottom)
No. 3: Natural Gas Consumption
•Heavy natural gas users like nitrogen producers and trucking companies profit from low natural gas prices.•Low natural gas prices are also opening up the door for a future export boom.
Food, fuel and exports
Photo credit: Clean Energy Fuels
No. 4: Soaring Eagle Ford Shale
• The Eagle Ford Shale is quickly becoming one of America’s most important oil fields.
• The oil rich shale is helping fuel Chesapeake Energy as it waits for natural gas prices to pick up.
Everything is bigger in Texas.
Photo credit: Anadarko Petroleum
No. 5: The Next Texas Oil Boom
• As good as the Eagle Ford Shale is, the next Texas oil boom could come from the Permian Basin.
• This legacy oil basin could just be the second largest oil field in the world.
The Permian Basin is about to get bigger
Photo credit: Apache Corp
No. 6: The Booming Bakken Shale
• Oil from the Bakken Shale helped Kodiak Oil & Gas to surge more than 3,000%. Even better, the company is turning the page to deliver its next phase of growth.
• Another company taking a unique, almost ETF-like approach to growing oil production out of the Bakken.
The incredible Bakken Shale of North Dakota
Photo credit: Marathon Oil
No. 7: The Gulf of Mexico Returns
• The Gulf of Mexico is no longer under Macando’s shadow.
• This past year was a great one for the Gulf as it saw producers like ConocoPhillips have a great year as it was a part of three big oil discoveries.
Several big finds in 2014
Photo credit: Apache
No. 8: Alaskan Production Comeback
• A new tax law has Alaska making a comeback.
• Companies like ConocoPhillips are investing billions to bring more production online over the next few years.
Will taxes translate into production gains?
Photo credit: ConocoPhillips
No. 9: Colorado Advances
• Oil producers like Noble Energy are pouring billions of dollars into Colorado.
• The hope is that its DJ Basin will become the next great oil basin.
Does Colorado hold an avalanche of profits?
Photo credit: Flickr/Maarten Heerlien
No. 10: Oklahoma Emerges
• Oklahoma is already a top oil producing state and a surprising winner of America’s oil boom.
• SandRidge Energy is one of the many companies leading Oklahoma’s emergence as it explores for oil in several other places above and below the Mississippian Lime.
A whirlwind of activity awaits Oklahoma in 2014.
Photo credit: Devon Energy
No. 11: The Next Black Gold Rush
•There are billions of barrels of oil in these difficult to access shale plays.
•If producers can find the right way to extract the oil both might emerge in 2014.
The Monterey and Tuscaloosa Marine Shale could be big in 2014.
Photo credit: Encana
No. 12: Oil & Gas Income
•Upstream MLPs like LINN Energy and BreitBurn Energy Partners pay a high monthly distribution making these must-buy income investments for income seeking investors.
MLPs offer growing income to investors
Photo credit: LINN Energy
No. 13: Special Situations
• Companies like Occidental Petroleum and Hess are expected to spin off or sell units in 2014.
• These moves are geared to unlock value for investors and fuel the stock price.
Turnarounds and spinoffs could fuel big future returns
Photo credit: Hess
No. 14: Environmental Solutions
•Companies like Halliburton and Nuverra Environmental Solutions are working to turn fracking green by recycling water. •Nuverra is also focusing some of its attention to disposing drill cuttings.•Meanwhile, Halliburton has developed a fracking fluid made entirely of products from the food industry.
Water recycling and solids removal could be big in 2014.
Photo credit: Flickr/Gaz Haywood
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