The future of oil exploration lies in new technology - from massive data-processing supercomputers to 4D seismic to early-phase airborne spy technology that can pinpoint prospective reservoirs.
Oil and gas is getting bigger, deeper, faster and more efficient, with new technology chipping away at "peak oil" concerns. Hydraulic fracturing has caught mainstream attention, other high-tech developments in exploration and discovery have kept this ball rolling.
Oil majors are second only to the US Defense Department in terms of the use of supercomputing systems, which find sweet spots for drilling based on analog geology. These supercomputing systems analyze vast amounts of seismic imaging data collected by geologists using sound waves.
What's changed most recently is the dimension: When the oil and gas industry first caught on to seismic data collection for exploration efforts, the capabilities were limited to 2-dimensional imaging. The next step was 3D, which gives a much more
Last month, it seemed the Keystone XL pipeline was nearing approval, but as with most things surrounding the project, things weren't as they seemed. A US state department report reviewed the Alberta, Canada-Nebraska pipeline and indicated the project was unlikely to have a significant impact on climate change. This seemed like a significant positive step for the pipeline, but within the details of the report were critical comments from the Environmental Protection Agency.
Environmental concerns have been the most publicized aspects of the pipeline, with opponents arguing that the project could accelerate climate change by enabling increased production from the oil sands of Alberta, which creates 17% higher greenhouse gas emissions than the average crude used in the US. President Obama will make the final decision on the pipeline, and given his campaign to battle climate change, it is difficult to imagine him defying the EPA and his core Democrat
Yesterday oil prices spiked on the heels of the conflict risks in the Ukraine, but they have been inching higher since last year. This has also been translated to higher gas prices. In my community, gas prices are officially 10% higher today than they were a handful of months ago.
When oil prices start to gyrate like they have recently, new buyers often get enticed into the market, but we are actually looking to sell the positions that were recommended to clients of Stock Traders Daily. Last year when oil was out of favor, Stock Traders Daily recommended both US Oil (NYSE:USO) ETF and Ultra UBS Crude (NYSE:UCO) ETF, and both are getting very close to our upside targets.
Therefore, even though the recent trend may be up, and even though added attention has been paid to oil prices given the risks in the Ukraine, we anticipate being sellers in