Keith Lieberthal
Growing concern over future tightness in upstream production can be seen in the futures market. Typically, the combination of high current oil prices, foreseeable demand growth and plentiful proven reserves would stimulate investment in upstream capacity building. This, in turn, would lower oil futures several years out. However, a check of the New York Mercantile Exchange futures table shows future oil prices higher than today's spot prices for every contract through December 2015.
The Opportunities
The markets sense the problem, but they have not yet grasped its implications and identified the opportunities they present. Please join Jim Cramer and me as we discuss those opportunities in the IOCs, NOCs, and service and drilling sectors. Jim describes why Total(TOT Quote - Cramer on TOT - Stock Picks), a French oil company, is better positioned to navigate the choppy political waters of producer states than its U.S.-based IOC brethren. We explore how future capacity strains will favor service and drilling companies like Schlumberger(SLB Quote - Cramer on SLB - Stock Picks), GlobalSantaFe(GSF Quote - Cramer on GSF - Stock Picks) and Transocean(RIG Quote - Cramer on RIG - Stock Picks) who are positioned to exploit IOCs' search for increasingly remote reserves and NOCs' need for development and production expertise. And Jim explains why fluency in the cultural and political affairs of producer states will be a matter of competitive advantage -- not just corporate etiquette -- for IOCs in coming years.
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