How the Shale Oil Boom Affects the U.S.

The boom in shale oil and gas has been a swoon for many companies, but few have taken greater advantage of it than refineries in the past couple years. With a lack of infrastructure to move crude from these new energy plays, several refiners in the U.S. have had the benefit of paying discounted prices for feedstock. There is so much light crude coming out of the ground that some refiners are now exporting refined products overseas to make up for the lack of demand in the U.S.

The question remains, though, whether this trend can continue. By increasing takeaway capacity from shale plays, it's very likely that producers will be able to command a better price point for these new sources of U.S. crude. We have seen this for several years with the oil and gas sector: Big fluctuations in local production and price have eventually reverted back to the average. Will this time be different? It's hard to say, so tune in to the video below where Motley Fool analysts Joel South and Michael Olsen, and Fool.com contributor Tyler Crowe, take a look at what may be in store for the oil boom in the U.S..

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  • Report this Comment On July 08, 2013, at 11:58 AM, bambi14 wrote:

    It does not matter if I trust the stock market,but knowing how it "TICKS" and knowing who truly is in charge of pricing aka what goes on behind the doors and then their doors..and of course its always good to have your own door !!! The article exposed in the New York Times by a certain Canadian Bank (forthcoming with info)....Just imagine that you in good faith invest in a solid entity, entrusting this conglomerate with your money. The person behind door number 2 decides the price of the stock so, with that knowledge, trust is not a consideration savvy dumbness can be your friend !! Thus I make money in the market most of the time or at least have fun and come out ahead financial. Trust is not an issue for it is a game . I make my own rules to my game and one is don't be Greedy, Know that the market is ruled emotions and actuarial advice and if some Soothsayer Investment Banking firm says something about a stock , all will follow I usually don't listen !

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