Warren Buffett shifted his investments from electronics to energy. He invested in North Dakota Bakken oil shares. What could be his reason for this.
Soon he was followed by another billionaire Bill Ackman of Citadel Hedge Fund, and Moore global investment.
Those who invested in the oil/energy shares have seen up to six bagger capital gains.
What is the reason? There is plenty of oil at Bakken, North Dakota.
The USGS completed a study in 2008 about oil reserves of sweet light crude (similar to Saudi crude?) at Williston Basin to be 4.3 billion barrels. In 2010, a new study revealed additional 1.9 billion barrels Three Forks or Sanish Formation Oil Shares in Bakken, North Dakota
A few years ago, a petroleum geologist Dick Findley was working in an area that has been barren for 20 years. His theory is that there is light sweet light crude in that area and sure enough, we found one at below ranch outside Montana, some 9,000 ft below. Big time drillers like Shell did not find oil
Findley found a system to get oil from the shale fields; he got help from Halliburton ie drilling sideways.
Findley is moving in fast, even to Mississipi according to green baron. Green Baron suggests that the Bakken reserve is 503 billion barrels (not only 4.3 billion barrels, as Energy and Capital reports.
To put that 503 billion barrels, that is 5x the Bhawan oil reserves of KSA, and 235x more than the US strategic reserves.,
"New ideas create more and better new products and services; create more wealth."
0 comments:
Post a Comment