The Oil ‘Free Fall’ Is Coming to an End

Doc’s note: Oil is a cyclical industry. When oil supplies are low, prices are high. When supplies are high, prices are low.

For the past several years, we’ve seen weak oil prices. But an oil move is coming that no one expects… according to new Stansberry Research analyst Flavious Smith.

Today, I’m sharing an excerpt from Flavious’ new special report, “Commodity Supercycles: How to Find the Best Investments in Oil and Gas.” In his report, Flavious shares why he’s bullish on oil and where to find the best investment opportunities.

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Don’t be fooled…

When things look bad, it’s hard to imagine anything changing.

Oil prices have been crushed. Since their highs around more than $100 per barrel in 2014… they’ve spent three years in freefall.

But the world is about to experience a huge shift. It’s already starting. I believe it’s going to turn things around for the oil industry – in a big way…

And my grandfather would know just what to do…

“Boy, you can’t score a touchdown if you’re not in the game.”

Grandpa must have told me that a hundred times growing up. It was good advice for the gridiron. As a kid, I never imagined it would apply to my career in the oil business.

But it turns out, grandpa’s advice was useful beyond my playing days. As resource investors, we must always be looking for value. We can’t wait for good things to happen… Because by then, the big opportunities will be gone.

Oil prices will move higher soon… higher than most people can imagine. And that’s why you want to be in the game now…

You won’t hear a lot of folks offering sunny predictions about oil. Today, you turn on the TV and hear nothing but bad news in the oil industry. Oil prices are down and going lower. Reports estimate that the U.S. has lost 200,000 oil and gas jobs since mid-2014.

According to bankruptcy-law firm Haynes and Boone, 114 exploration and production companies declared bankruptcy from January 2015 through last December. The combined debt for these companies totaled more than $74.2 billion. Over the same period, 110 oilfield-services companies went belly up… with total debt of more than $18.8 billion.

That’s 224 bankruptcies and $93 billion in debt.

And we’re just getting started… We’ll see another massive wave of bankruptcies before the oil and gas sector emerges from this ongoing bear market. The continued drilling and near-record production will keep driving oil prices lower. The companies with higher costs and big debt loads will become the next victims.

Meanwhile, global oil production is about 98.5 million barrels per day, while demand is about 97 million barrels per day.

And yet… despite all of these headwinds, I’m bullish on oil prices. You see, in the coming years, demand is going to absolutely skyrocket… and overwhelm our ability to meet it.

This is the long-term trend… It’s a “supercycle.”

That kind of surge in the price of oil will cause huge changes in global economics and financial markets… There will be huge winners (and losers) along the way.

Don’t just be in the game. Make sure you’re putting your capital in the very best opportunities.

Good investing,

Flavious Smith

P.S. Tonight Porter Stansberry and I are talking about news you should be hearing about, but probably aren’t… The coming rising oil prices and how you can benefit from them. We’ll share our thoughts on the opportunities we see in the oil market, and lay out our thesis for oil for the next decade. To secure your spot, all you have to do is sign up here.