Covering nearly 200,000 square miles, North Dakota’s Bakken Shale formation is helping rewrite America’s energy history. While first discovered in 1951, it wasn’t until recently that the Bakken really got cooking. Using the advances in horizontal drilling and other modern extraction techniques, oil and gas companies have been able to tap the region’s vast reserves of shale oil. Production continues to surge, and I now predict the Bakken will be pumping more than a million barrels a day by 2020.
However, getting that bounty to consumers and end users hasn’t been as easy as extracting it. As we’ve said before, logistics are key for the energy industry. And poor pipeline infrastructure in the Bakken field is creating vast difficulties. While plenty of plans are on the drawing board to increase the number of pipelines in and out of the Bakken, they’ll take years to complete. In the meantime, a select group of firms is poised to continue benefiting from the Bakken’s rising production: THE railroads
For investors, betting on them could be a great win. Warren Buffet wins again!