This is a guest post by my good friend Mich from BeatingTheIndex.com. He believes that oil consumption is on the path of growth for the next decade and he intends to take every advantage possible of it.
The North American oil industry has been rejuvenated following the adoption of new drilling and completion techniques. It became possible to horizontally drill right into the flat shaped deposits and collapse the oil rich rocks by fracking (pumping sand and liquids at high pressure into the well bore) in order to allow the oil to flow back up.
Old oil fields that were once thought to be dead or uneconomic because oil was trapped in deep shales (fine sedimentary rocks) has been brought back to life as high oil prices turned this untapped source into profit for companies and their investors. As such, the new drilling techniques is helping the USA reverse a 2 decade decline in domestic production by opening up vast fields that previously contained out of reach oil.
According to oil executives and analysts, the new fields could yield as much as 2 million barrels of oil a day by 2015, more than the entire Gulf of Mexico produces now. Oil prices are expected to be firm in the coming years due to strong demand from emerging economies. Billions of dollars are being invested by companies to get at this oil across Canada and the USA.
One of the emerging oil plays being chased covers both Canada and the US; it is dubbed the Alberta Bakken oil play. It covers a huge area across Southern Alberta and Northern Montana. The potential is huge as it might hold as much oil as the North Dakota Bakken Shale (500 billion barrels). The play is gaining momentum in 2011 as companies have positioned themselves with land and started the drilling process.