Oil Stocks in 2024: Will the Mega-Mergers Continue?

But we knew better, especially after three years of... But we knew better, especially after three years of...                                                                                                      [Outsider Club Header] Dec 21, 2023 By Keith Kohl for the Outsider Club Oil Stocks in 2024: Will the Mega-Mergers Continue? Nobody gets it right all the time. But many of my calls were right on the mark, such as, the resilient demand we’ve seen throughout the first three quarters of 2023. Or, that oil was dirt cheap after selling off last March. And the veritable smorgasbord of oil profits that were still ahead when summer came rolling around. But in the holiday spirit, I’m also humble enough to know that not all my predictions came true this year for the oil markets. And you know what? Sometimes that’s a good thing… The Good One of the most pleasant surprises came from the U.S. oil fields. Earlier this year, it was very hard to make a case to the upside for U.S. oil output. Not only were there fewer and fewer rigs being deployed into the field, which in-and-of-itself is a major red flag that future production would be limited, but there were other signs of trouble, such as the rapidly falling number of drilled-but-uncompleted wells. Yet through it all, U.S. drillers are now extracting more crude oil out of the ground than ever before. If the EIA’s numbers hold true — and that may turn out to be a very big IF, mind you — then current production stands at a little over 13.2 million barrels per day. But hey, that’s a good thing. The problem now becomes: How high can it go? We’ll save that one for later. There's $322 Billion Worth of Lithium in Northwest Alberta...Why Can't Anybody Touch It? For more than 40 years, an oil company has been working a 671-square-mile chunk of northwestern Alberta, producing its lifeblood using brine that’s kept in hundreds of massive storage ponds. These storage ponds have long been known to contain a massive lithium resource, totaling an estimated 4.3 million tons. Just recently a tiny Vancouver-based technology company, founded and headed by petrochemical industry veterans, figured out a way to extract the lithium from this brine, very quickly and very efficiently. So efficiently, in fact, that the company can filter this oil field brine, returning it to the pond after processing, with a better than 95% capture rate. Production of salable lithium will cost between $3,000 and $4,000 per ton, while market rates price lithium at $70,000 per ton. They know where the lithium is, they know how to extract it, and, as of now, they have an agreement in place to work this giant lithium-rich property. Commercial production is now projected to be in place by the middle of 2024, with buyers already lining up. [Interested? Enter here to learn more.]( The Bad Then there was China. All year, the headlines were littered with doomsday calls over China’s economy. But we knew better, especially after three years of lockdowns finally over. For most of this year, China’s oil demand surpassed expectations just as we had expected, and remained throughout the year. During the first eleven months of 2023, China’s imports grew 12.1%, but finally started to show cracks over the last few months. Remember, China was supposed to be the penultimate driving force for global oil demand. If it falters, then oil prices fall sharply. Unfortunately, that demand picture has finally become clouded, with demand growth expected to slow in 2024. However, the silver lining in 2023 is that no matter how you played oil this year, you would’ve come out ahead. And things are about to get even better. Goldman Sachs: AI a "$7 Trillion Opportunity" Banking giant Goldman Sachs just said... That the artificial intelligence (AI) market could be worth $7 trillion in just a few years. And one former Wall Street analysts predicts it could hand you 5,300% profits — thanks to one little-known stock. That’s because this tiny firm holds over 200 patents on an AI breakthrough... One that will be in 70% of cars, 80% of hospitals, and 94% of corporations. To discover the details... [Simply click here.]( The Downright Profitable Oil Stocks in 2024 No matter how uncertain you were about oil stocks in 2023, the one truth that became glaringly clear to us all is that this was the year of the mega-merger. For all of its advantages, Big Oil has always had one downside: Growth. You see, one peculiar little tidbit that most investors don’t realize is that massive oil companies like Exxon Mobil don’t achieve their growth through the drill-bit. They play by a different set of rules, and are far less occupied with staking out new claims in up-and-coming areas. Why should they? When you have a war chest like Exxon, you don’t have to fret over little things like that. Besides, if you can’t beat 'em, just buy 'em… And that’s precisely what happened in 2023. Exxon announced its buyout of Pioneer Natural Resources for $60 billion back in mid-October. A few weeks later, Chevron made its own move to grab Hess for about $53 billion. That’s more than $100 billion on oil and gas mergers in the Permian Basin in just the last few months. And those deals have lit the fuse for more M&A in the oil and gas industry. You can bet they’re not done yet. Last week, Occidental said it was dishing out $11 billion to pick up CrownRock in West Texas. Don’t be surprised to see more and more of these deals in 2024, reshaping the U.S. oil patch as we know it. The only question that should be on your mind now is, “Who’s next?” [Well, I know who I’m buying.]( Until next time, [Keith Kohl Signature] Keith Kohl [[follow basic]Check us out on YouTube!]( P.S. Today’s article was originally published by our sister publication [Energy and Capital](, which is solely dedicated to helping readers profit from the ever-expanding and ever-changing energy sector. If you would like to receive daily free email investment letters from the editors of Energy and Capital, [simply click here.]( Follow the Outsiders [YouTube]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy[here](. Outsider Club, Copyright © Outsider Club LLC, 3 E Read Street Baltimore, MD 21202. 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