The Big Investment Opportunity: Oil And Gas Transportation

Did you know that oil and gas production from the exploitation of shale has doubled in just the last six years? It’s quite true. Despite the cant of the “drill baby drill” crowd in Congress and elsewhere in the political landscape, the plain fact is that drilling activity has been largely irrelevant to the new energy production boom. This has been the result of plain American ingenuity and the development of new technologies making shale extraction profitable. The reserves locked up in shale look to far outstrip any such similar reserves still locked up underground.

Where this has particular relevance is in the transportation sector. All that new oil and gas has got to be moved by one means or another. It is true that new pipeline construction is likely to be approved in the next few years. But it will also take time to build those pipelines and meantime there’s lots of oil and gas to be conveyed. As a result, smart investors would do far better to look for those companies developing and expanding transport capacity by truck, by rail, and by barge. Overland and riverine transport can reach many more places than pipelines and by many more routes. Fleets of trucks can move as long as the highways are moving, can shift routes as needed, and relay between shipment points to guarantee delivery to any location anywhere in the United States. Thousands of tons of oil and gas can be moved by rail. River barges moving millions of barrels of oil can reach any petrochemical refinery located along any inland waterway. And thanks to the Merchant Marine Act of 1920, all such water transport is an exclusively American enterprise. This means all such transport vessels must be built in American ports, owned by American companies, and crewed by Americans.

Investment in oil and gas transport is projected to increase even beyond the levels that have been reached in the market to date. For example, Kirby Corporation (NYSE: KEX) stock has seen an increase in value by 455% since 2010 just to name one example. These sorts of returns on investment are likely to continue while transportation operations struggle to keep up with increasing supply. And even if production tails off, transportation of oil and gas will still be a solid industry with almost guaranteed profit. So check out this page for more details on this and other similar investment opportunities.