Domestic Oil Stockpiles Surge to 13-Year High; Special Report by Leading Financial Web Site Penny Stock Detectives

In a recent Penny Stock Detectives article, editor Mitchell Clark points out that U.S. stockpiles of oil are growing fast.

New York, NY (prHWY.com) August 17, 2012 - In a recent Penny Stock Detectives article, editor Mitchell Clark points out that U.S. stockpiles of oil are growing fast, as domestic production is now at a 13-year high. According to Clark, natural gas is plentiful, and demand is low, so the whole energy picture isn't looking good. However, Clark notes that, as always, there are some growth stories out there.
"Kodiak Oil & Gas is a growth story in the energy sector. It's one of only several oil stocks that have generated excellent returns over the past three years," observes Clark.
Currently trading around $8.00 a share, this oil and gas producer has its operations concentrated in the Williston Basin of North Dakota and Montana, and the Green River Basin of Wyoming and Colorado, reports Clark.
In its second quarter of 2012, Kodiak reported average sales volumes of 12,696 barrels of oil equivalent per day (BOEPD), he notes. Clark says it is a growth story because this number represents an increase of about 385% over sales volume of 2,618 BOEPD in the second quarter of 2011, and a 20% increase over first-quarter 2012 sales volume of 10,578 BOEPD. Clark says there's always a growth story out there in any industry, but he states he wouldn't be buying much in the energy sector with the economic picture that's being painted right now.
"Combine very low to no economic growth, and you've got $90.00 or less World Texas Intermediate (WTI) oil," states Clark. "What we're getting from the economic news and financial results this earnings season is a general, across-the-board slowdown in the U.S., Europe, and emerging markets."
The only way oil prices and oil stocks can advance in an environment like this is if there's a new war, argues the Penny Stock Detectives editor. It doesn't mean peak oil doesn't exist, he concedes, but low oil prices reveal economic stagnation in the world's mature economies.
Consumers should benefit with lower oil prices and so should some specific industries, predicts Clark.
"For example, if diesel prices go down and you're a railroad company, all of a sudden the cost to ship your freight is going down," he explains. "Just like with gold stocks, oil stocks can't really advance when the underlying commodity isn't following suit."
While Clark notes that he is hesitant to buy them, he concludes that institutional investors might if the news is good enough.
To see the full article and to learn more about Penny Stock Detectives, visit www.pennystockdetectives.com.

The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com.

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Tag Words: oil prices, oil stocks, peak oil, oil, energy, gold

Categories: Business

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