NEW YORK (TheStreet) -- My reputation as a bear and short-seller are well-deserved. This is especially true in my opinion of energy prices. During the last year, I have become even more bearish in the wake of so many recoverable oil discoveries.
As a result of the media focus on the Bakken Shale formation occupying the midwestern part of the United States, you may believe North Dakota is the center of the shale energy universe. It's true that North Dakota's energy production is growing at an amazing pace, despite its relatively harsh winters and distance from population centers.
North Dakota oil production expanded enough to make the state the second largest crude oil producer in the nation. North Dakota and the related oil boom may make for exciting news stories; however, Texas not only maintains its leading role in energy production, but may soon expand its lead in production.
The Street's energy expert, Dan Dicker, brilliantly reminds us that if you take your eyes off the gulf oil ball, you may miss out on superior opportunities that remain available. (Watch this video of TheStreet's Jim Cramer talking to Dicker about the extraordinary and new energy discoveries offshore.)
Dicker states that the headwinds suppressing the stock price of BP (BP) from the 2010 Deepwater Horizon explosion in the Gulf of Mexico is near the end and should soon pass. Dicker gives the names of other companies he especially likes including Haliburton (HAL), Chevron (CVX), and ConocoPhillips (COP). Aside from the obvious usual suspects, Dicker also names secondary plays for investors to consider. What Dicker doesn't cover is the impact on oil and natural gas prices as these new discoveries come on line. Increased production in the Gulf actually provides two decidedly different investment opportunities. Dicker does a splendid job of explaining the play with oil recovery companies, but I want to focus on the commodity play. Investors no longer need to have a commodities account to gain exposure to commodities with the advent of energy exchange-traded funds (ETFs). For commodity investors, the impact on US Oil Fund ETF (USO) and US Natural Gas Fund ETF (UNG) is crystal clear to me. Because of the recent Gulf of Mexico discoveries, we can look forward to an acceleration of energy independence for United States and lower prices in USO and UNG.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV