Is Investing in Shale Oil Stocks a Good Idea?

For a long time, people were talking about reaching peak oil and having to find new sources of energy quick. Then prices got so high that something unexpected happened. Huge reservoirs of oil that had been too expensive to tap previously were suddenly worth investigating. Exploration proved what many had suspected. There were billions of barrels of oil trapped in the subterranean shale of North Dakota causing shale oil stocks to boom.

It has not been an easy ride for investors in these companies. Oil prices were so high for a while that it was definitely worth drilling. Prices backed off from their highs, though, and put the issue in doubt. At the present time, however, prices have risen sufficiently to make drilling worthwhile. The oil camps of North Dakota are growing fast and a new field in South Texas is making news as well.

Shale Oil Stocks for 2013

There are a lot of shale oil companies but not all of them have the right fundamentals to make it, even in this oil hungry market. If you are going to invest in this sector, consider the five following names. They are actually from the newest shale oil formation, Five Eagle Fords, in South Texas.

• NuStar Energy

• Murphy Oil

• Valero Energy

• Boardwalk Pipeline Partners

• Forest Oil

The Five Eagle Ford fields look every bit as promising as those in North Dakota’s Bakken formation. The best thing about investment with the companies located there right now is their potential upside. The sky is the limit for these up and coming corporations drilling in the fields of South Texas. If you read their fundamentals carefully, you may see which ones will manage the market successfully over the next few years and become the newest sensations in oil drilling.

Stay up to date on Shale oil stocks by getting on our FREE eMail list!