Buy Low Sell High - Now Is The Time To Buy Into A Quality Oil Program

By Author: Slevin Maya
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In recent years, fracking has led to a significant increase of oil and gas production throughout the United States. In fact, it is estimated that the U.S. will produce an average of 11.6 million barrels of oil per day by 2020, and North America is well on its way to achieving energy independence.

As U.S. oil inventories continue to rise, American demand is not able to use up the supply. This has caused oil prices to drop in recent months. However, these low prices are not expected to last, and right now might be the best time for investors to buy into a quality oil program.

While oil prices are low, investors have a unique opportunity to buy low and sell high. Even though current oil prices are down, the long term outlook is promising for both oil producers and oil investors. As drilling costs continue to rise, oil producers are looking to justify the high price of drilling. Oil prices must remain high or oil producers will simply stop drilling and cut supplies. Keeping up the current pace of oil production while prices are declining can only last so long before economics force oil companies to curb output, driving oil prices higher.

However, The price of oil would have to fall considerably before there would be a major impact. State officials estimate that $42 per barrel is the price at which the majority of non-shale production would cease. That's considerably lower than the current price for benchmark American crude. Most analysts agree that this level will never be reached due to an insatiable global energy appetite. Community leaders and industry executives are fairly confident that domestic oil and natural gas will continue to be profitable to extract for many years to come.

In addition, new sources of demand might be available within the next few years. If the current U.S. ban on exporting oil is lifted, global demand will ultimately lead to higher oil prices. This increase in oil prices increases profits for both oil producers and their investors. Pair this with the fact that the U.S. has the edge in meeting the world's future energy needs and it's quite obvious that now is the best time for investors to get involved.

Article written by Bob Allison of Sahara Wealth Advisors. Sahara Wealth Advisors is an exclusive commodity advisory firm that specializes in the procurement of premium oil and gas lease properties offering exceptional returns for qualified oil and gas lease investors. Sahara Wealth Advisors strives to increase domestic oil production, and decrease America's dependency on foreign oil.