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An oil discovery worth noting -- hallelujah! From the beginning of this historic run in oil, I have said that you will not get a peak until we discover more oil and oil companies can flood the market with oil that's in safe, nonpolitical areas.
Like the Gulf of Mexico.
And we finally got some, this Gulf discovery by
(CVX - Get Report),
(DVN - Get Report) and
(STO - Get Report), deep under the waters covering the Jack field.
What's important about this find -- beside the fact that I have been buying Devon aggressively for
Action Alerts PLUS
! -- is that I believe this will be the first of many finds that would have seemed uneconomic three or four years ago. Some oil companies, notably the two main ones involved here, Chevron and Devon, have been big believers that oil is going higher. Devon's been saying that for a half-dozen years. Chevron bought Unocal, a sign that it surely believes things are going higher. Both companies were thrilled to be drilling in a place that was long known to have oil, but oil that was considered too expensive to drill for.
I suspect this discovery will be the first of many we will now hear about from the companies that are willing to spend. (
(XOM - Get Report)
isn't. It isn't clear that
Royal Dutch Shell
even know what they are doing.)