Getting Ready for US Energy Independence
The U.S.’ long-term goal towards energy independence offers opportunities for retrospect and change. For investors, it encourages acquisition of new oil investments or expansion of existing ones.
But is this long-term dream really achievable? Experts have every reason to believe that energy independence is attainable by 2035. The U.S. has vast energy resources. More so, it is the world’s focal point of cutting-edge oil exploration and drilling technology. The country’s strength also lies in cheaper costs of capital as well as reliable legal systems that support development and exploration of oil resources.
For many years, the dollar has weakened largely due to the U.S. trade deficit. Oil imports have negatively affected trade margins, causing a strain on the dollar.
Many experts have been pushing for reliance on domestic oil output, although others have remained sceptical about relying solely on local supply. Nevertheless, optimists believe the U.S. has a very big chance of realizing energy self sufficiency while maintaining a healthy local demand scenario.
Some have noted that if the country is serious about improving its trade margins, government should update old laws that inhibit oil exportation, especially when there’s a continuing surge in oil supply. These laws were founded on the long-standing assumption that countries will soon run out of oil.
Given that the biggest oil consumer – the U.S. – has adequate domestic oil resources and that local demand is assured, looking for local oil producers is surely the way to go. Experts agree that those that could deliver steady oil supply and favorable ROIs are good targets. Right now, there are many local producers waiting to be tapped.
Those investing in oil are advised to look into new exploration opportunities, high-yield MLPs, and stocks of oil producing firms with a good track record of managing expenditures.
Maintaining a diverse oil investment portfolio is also suggested by experts. Companies engaged in exploration and production as well as oil and gas technology providers and related services firms are prime considerations.