The Explosive Truth Behind America’s Oil and Gas “Melt-Up”

The Explosive Truth Behind America’s Oil and Gas “Melt-Up”

Billionaires like Warren Buffett are allocating huge amounts of capital to domestic oil stocks … despite the Biden administration’s push to “de-carbonize” our energy economy. What do these billionaires know that you don’t?

Billionaires like Warren Buffett are allocating huge amounts of capital to domestic oil stocks … despite the Biden administration’s push to “de-carbonize” our energy economy. What do these billionaires know that you don’t?

As an advocate for free-market principles, I stand for:

  • Wealth preservation
  • Energy independence
  • American innovation
  • Investment opportunities for everyone preservation

And the harsh critic of government overreach; I find it imperative for my readers to be aware of how bad government policy is creating the threat of a $200 a barrel oil world.

Indeed, the current and future high prices are having a negative impact on the American way of life.

As many readers know, I love economics, and for over 30 years have known America’s most famous investment newsletter writers, many of them my friends.

One of these newsletter writers is Tim Collins of Streetlight Confidential newsletter. He had been preparing for a $200 a barrel inevitability for a long time.

And Tim has created for you:

  • An analysis of the situation
  • How the Biden administration haas attempted to attack American energy independence
  • How Biden’s regulations hamper innovation among the oil and gas industries and push The Green Agenda

Biden’s terrible policies unwittingly provide some potential investment opportunities that the average investor like is rarely gets to take advantage of.

Here is Tim Collins of Streetlight Confidential’s special report, which I encourage you to read it carefully:

$200 a barrel oil. Is it possible?

Some experts are saying it’s not only possible … it’s likely.

The question is, have you positioned yourself to potentially profit from the dramatic melt-up in oil that some experts are predicting?

In a moment I’m going to reveal the truth behind the doomed plan to domestic crush oil and gas production … expose the Biden Administration’s “dirty little secret” … and, most importantly, show you how you can position yourself alongside the likes of Warren Buffett and Ray Dahlio to profit from this virtually unprecedented opportunity to invest in the future of how Americans produce and consume energy.

And, if you stay with me to the end, I’ll reveal a little-known company that could provide investors like you a compelling opportunity to make the oil and gas melt-up work for you.

My name is Tim Collins, and I run a research firm called Streetlight Confidential.

It’s my job to help investors see the massive potential posed by earth-shattering megatrends like what’s happening right now in domestic U.S. oil and gas …

… And then show them how they can take action on little-noticed, “hidden” opportunities deep inside those trends.

As a former hedge fund manager, I spent decades on Wall Street advising and ghostwriting for investing icons like Jim Cramer and James Altucher … and now I’m bringing that experience and those insights straight to my subscribers in the Streetlight Confidential Newsletter.

My number one goal is to help every single one of my subscribers create life-changing, generational wealth.

I’m here to help you take complex topics, break them down into manageable pieces … and unlock strategies to take profitable advantage of what’s happening in the market.

Like, for example, the massive changes shaking up the American energy market …

… And the compelling upside potentially waiting for investors who are paying attention.

Before I get to that upside, though, I’ll unpack for you three catalysts that are powering this groundbreaking oil and gas megatrend.

CATALYST #1: THE BIDEN ADMINISTRATION’S FECKLESS ENERGY POLICY

President Biden’s war on fossil fuels is well into its fourth year, and we’re feeling the ramifications across essentially every aspect of the economy, from rising transportation costs to the seemingly ever-increasing price of basic goods.

This squeeze is the first catalyst driving oil and gas melt-up in America.

In the last four years, the Biden administration has unleashed a torrent of energy-unfriendly policies:

  • He Canceled the Keystone XL Pipeline and Leasing Moratorium: One of President Biden’s first actions upon taking office was to cancel the Keystone XL pipeline permit

  • He Issued an Oil and Gas Leasing Moratorium. Shortly after he killed Keystone, he imposed a moratorium on new oil and gas leasing on federal lands and waters.

  • He Banned New Oil and Gas Leases in Alaska and the Arctic Ocean: The administration has banned new oil and gas leases in the entire U.S. portion of the Arctic Ocean and is preparing to close off large areas in Alaska from fossil fuel development.

These decisions are part of the administration’s broader agenda aiming for significant reductions in U.S. greenhouse gas emissions by 2030 and achieving net-zero emissions by 2050.

What President Biden’s administration and the ecowarriors staffing it are trying to accomplish is, in my opinion, a pipe dream.

But that hasn’t stopped them from using massive government spending programs to bypass the free market and attempt to force the transition away from “fossil fuels” and toward new or next-generation energy sources.

As a free market absolutist … I personally find those decisions appalling.

As someone who has to pay an ever-increasing monthly gas bill … I find those decisions maddening.

As an investor … I find it intriguing.

It all comes down to Econ 101: Supply vs demand.

Right now we’re experiencing a restriction in the supply of our number-one source of energy in the U.S.: fossil fuels.

This is on top of geopolitical pressures like the war in the Ukraine and the ever-escalating conflicts in the Middle East.

But the demand for energy hasn’t changed. In fact, if anything it’s increased.

And what happens when supply of a commodity drops while demand rises?

The price of that commodity goes up.

That’s where we’re at with oil and natural gas … and it is why some experts are predicting that the price of a barrel of oil could spike from today’s $80-ish per barrel to $200 a barrel or more.

The Biden Administration has kicked this can down the road by draining the Strategic Petroleum Reserve (SPR) to artificially stabilize the price of oil. The problem with that plan is, the SPR is currently at historic lows, and once that option is off the table … it’s game on.

Will this be what drives oil to $100 a barrel … $200 a barrel … or more?

I don’t know.

What I do know is that the Biden Administration has a “dirty little secret” when it comes to domestic oil and gas production …

… And, despite the theater from the ecowarriors in D.C. … the Administration’s actions are creating an unprecedented opportunity for investors with the guts to look behind the headlines and the foresight to fortify their portfolios against what’s to come.

I’ll elaborate more in a moment.

Before I get to that, however, I want you to understand the second catalyst behind America’s oil melt-up.

CATALYST #2: THE RESURGENCE OF THE SHALE REVOLUTION

The fracking revolution of the early 2000s made the Permian Basin in West Texas one of the world’s most productive (and most profitable) oil regions.

Shale fracking is a technique used to extract oil and natural gas by injecting high-pressure fluid into shale formations to fracture the rock and release the hydrocarbons trapped inside.

Fracking has the capability to significantly increase oil and gas production and unlock previously unprofitable regions to oil and gas exploration and development.

In the U.S., fracking opened up hundreds of thousands of square miles of shale-hosted oil and gas and, since its initial boom in the early 2000s, fracking put the U.S. on a path to producing 12.8 BOPD (barrels of oil per day) in 2023 and a projected 13.1 BOPD in 2024.

The Permian Basin in Texas accounted for 5.7 billion BOPD of that production in March 2023, according to the EIA.

If you were in early to some of the explorers and producers that flocked to the Permian during COVID lows, you potentially experienced some extraordinary profits.

In fact, in the last 5 years, the Permian Basin has been at the center of some of America’s great stock market success stories.

Pioneer Natural Resources (PXD) saw a 283% gain in a matter of months.

You had Chevron (CVX), who saw their stock shoot up 172% in a matter of months…

And you had Diamondback Energy (FANG), whose work in the Permian Basin resulted in their stock price rising from a measly $18 in March 2020 to the massive $150 it’s at today.

That’s a staggering gain of 706%.

Three companies. All enjoying triple-digit gains in a relatively short space of time. And all thanks to the discoveries being made at the Permian Basin.

Fast forward to today. The Permian Basin is steadily cranking out an enormous amount of oil and gas … and investors are looking around for the next big field to explode thanks to fracking technology.

And, in northern Colorado, I’ve found a new basin with the potential to deliver the type of gains my subscribers are looking for … and a company ideally situated to take maximum profitable advantage of this new basin.

More on that company in a moment.

First, I want you to understand the opportunity presented by Colorado’s Denver Julesburg (or DJ) Basin.

With estimated reserves of more that 5 billion barrels of oil equivalent, the DJ Basin is one of the largest oil and gas producing regions in the U.S.

The DJ Basin’s 5 billion barrels of oil equivalent reserves makes it an important source of domestic energy production …one of the biggest in the U.S., and one that can help reduce our reliance on foreign sources of oil and gas.

The DJ Basin has attracted major players like Chevron and Occidental Petroleum, who have invested billions in the area.

One reason it’s so attractive is because its dense concentration of hydrocarbons, spread across four geological layers or “benches” a few thousand feet underground, has an unusually low drilling costs per well — typically under $5 million per well.

In comparison, drilling costs in the Bakken and Permian basins average about $7 million and nearly $8 million, respectively.

Thanks to new technology, the Basin’s unique geology, and an optimal location, crude oil production in the DJ Basin has nearly doubled over the past four years … with a 45% increase over the past two years alone.

This rapid growth has positioned the DJ Basin as the second-fastest-growing major production area in the U.S., trailing only the massive Permian Basin.

Natural gas production in the DJ has also seen substantial increases, particularly from rich natural gas liquids associated with crude-focused wells.

All this recent growth is in spite of increasing regulatory pressure on domestic oil and gas … which brings me to my third — and, potentially, most shocking — catalyst driving the oil and gas melt-up.

CATALYST #3: THE BIDEN ADMINISTRATION’S “DIRTY LITTLE SECRET”

I want to let you in on the Biden Administration’s “dirty little secret.”

You see, despite all the caterwauling about climate change in the media…

…despite all the hot air coming from Washington, D.C., from the U.N.’s annual climate change summit and from Just Stop Oil activists…

…despite hundreds of billions of dollars in government spending to subsidize electric vehicles and so-called green energy…

…and despite the mass media pretending that fossil fuels are on their way out …

Oil, coal and natural gas still provide more than 80% of the world’s energy — 80%!

On top of that, the production and consumption of every type of fossil fuel — including the much reviled coal — is increasing all over the world — and will continue to increase for decades to come.

And, you may be shocked to discover, that includes the United States!

In fact, the “dirty little secret” of the ecowarriors in the Biden administration is that U.S. oil production has increased significantly, approaching a record high of nearly 12 million barrels per day by the end of 2023.

That’s up about one million barrels per day compared to when President Biden took office.

And it’s the highest level of U.S. oil production in history … surpassing production levels even during the oil-friendly Trump administration.

And all this is in spite of attention-grabbing gestures like the closing of the Keystone Pipeline, the tearing up of oil and gas leases, and the banning of Alaskan drilling.

That’s why I always tell my subscribers to look at the facts behind the headlines … because, as you can plainly see, the “anti-fossil-fuels” Biden administration may have created one of the greatest opportunities for domestic oil and gas investing I’ve seen in my years as an analyst.

In an industry as competitive and dynamic as oil and gas, I support my subscribers at Streetlight Confidential Newsletter by ignoring the headlines and cutting through the hype to focus on two main actions:

First, I look to discover a niche within the megatrend that has dramatic upside potential.

Second, I dig to uncover a little-known company within that niche that’s poised to dominate.

I recently alerted my paid Streetlight Confidential subscribers that, using our strict criteria, the research team here at the Streetlight Confidential Newsletter has uncovered exactly the type of opportunity I think they’re looking for.

The niche? Colorado’s DJ Basin.

The company? Prairie Operating Co. (NASDAQ:PROP)

6 REASONS PRAIRIE OPERATING CO. (NASDAQ: PROP) HAS “5-STAR” POTENTIAL

Prairie Operating Co. (NASDAQ: PROP) is a DJ Basin oil and gas explorer with drilling rights to approximately 38,500 gross acres in an area where:

  • Large oil and gas deposits are proven to exist.

  • Infrastructure (electricity, pipelines, roads, etc.) is already in place.
  • Local landowners and government welcome drilling.
  • Geology allows a well to be drilled quickly and economically.

Additionally, the company has seasoned management that knows the local market, adequate capital to carry out its strategic plan, and zero debt.

With potential war in the Middle East threatening to spike oil prices across the globe, a domestic oil play like Prairie provides a compelling risk/reward profile

I’ve done my research on this amazing company and shared with my subscribers 8 solid reasons why Prairie Operating Co. (NASDAQ:PROP) has the chance to turn its position in this basin into cash flow for investors.

Reason 1: PRAIRIE’S MASSIVE RESERVES

With estimated potential reserves of 285.3 million barrels of oil equivalent, Prairie Operating Co. (NASDAQ:PROP) could be well positioned to turn the higher oil prices I mentioned previously into major cash flow.

Additionally, the company’s management indicates that Prairie could remain profitable even if oil prices tumble by 50% from today’s $80-ish per barrel.

My analysis of Prairie’s land holdings shows that it has the potential to produce 10,000 BOEPD (barrels of oil equivalent per day) by 2026 and 17,000 BOEPD by 2032.

Assuming oil prices remain high, that level of production should produce some serious cash flow for Prairie.

Reason 2: PRAIRIE’S TRILLIONAIRE NEIGHBORS

Major investors … including Warren Buffett, “The Oracle of Omaha” … are taking note of the opportunity presented by domestic energy investments.

In fact, over the last two years, Warren Buffett has allocated almost 10% of Berkshire Hathaway’s holdings into oil and gas through investments in Chevron and Occidental Petroleum.

When investing giants like Buffett start allocating billions into a certain sector, I definitely pay attention … and I start digging to discover the hidden opportunity behind the headlines.

What I discovered is that key players — including Chevron and Occidental Petroleum — have operations right next to Prairie’s 38,500+ acre lease.

If the DJ Basin does prove to be the next Permian Basin for investors, I believe Prairie could follow in the footsteps of Diamondback Energy.

That Permian Basin oil company is up more than 700% from its November 2012 opening bid.

Should Prairie tap into oil at its expected rates, it could produce a compelling risk-reward profile.

Reason 3: DERISKED EXPLORATION AND DEVELOPMENT ENVIRONMENT

Major players like Chevron, Occidental, EOG, Civitas and Samson are all operating in the DJ Basin.

This critical mass of key players gives Prairie access to key infrastructure as it looks to develop wells on its lease.

The company has access to electricity, water and major roads, while being in a “sweet spot” for labor.

Prairie’s drilling location is far enough away from population centers that it won’t be a neighborhood nuisance, but it is close enough to access a vast skilled labor pool.

The area also features strategic pipeline connections to the Cushing, Oklahoma crude hub via the Pony Express, White Cliffs, and Saddlehorn/Grand Mesa pipelines.

Prairie’s location in Weld County, Colorado, is also a massive benefit, as Weld County has a special relationship with the Colorado state government that allows for expedited permitting and a friendly regulatory environment.

Reason 4: PRAIRIE’S “UNIQUE” MARKET PLAY

Prairie was able to make its play in Weld Country due to a “weird market” for oil and gas assets.

During the last slump in oil prices, the big companies didn’t have enough free capital to invest in developing the land, and the “mom and pop” operations were either overleveraged or retiring and looking for an out.

The team at Prairie took advantage of that situation by gathering investors to participate in a $17 million convertible preferred share offering that closed in May 2023.

This offering attracted the cream of the investing crop … including the attention of a billionaire who saw an opportunity to get in early on a potential multi-billion-dollar company.

Thanks to this convertible offering, the company began life completely debt-free, using a portion of the funds to purchase its initial leasehold in the DJ Basin.

Reason 5: PRAIRIE’S ASTOUNDING LEADERSHIP “DREAM TEAM”

When you invest in an up-and-coming explorer/developer like Prairie, you want to make sure the leadership team has a track record of delivering returns for investors.

The Prairie team clears this bar with flying colors.

President Gary Hanna has over 40 years of corporate and start up experience in exploration and production.

Previously, he served as Chairman, President and CEO of KLR Energy, which turned pure-play Permian Basin company Rosehill Resources into a 22,000 BOEPD producer.

Before that, he was the Chairman, President and CEO of EPL Oil & Gas, which eventually got bought out in an all-cash transaction of $2.4 billion.

Prairie’s Chairman and CEO Ed Kovalik was previously a managing member of the KLR Group, a merchant bank focused on the energy sector. He was part of the team that grew Rosehill Resources into a company with $750 million in enterprise value.

Prairie’s Executive Operations Engineer Bryan Freeman is the former Senior VP of Drilling and Completions at Rosehill. He managed large production teams at SM Energy, Hess and Chevron as well.

This is a team that has made serious money for shareholders before and has every intention of doing so again with Prairie Operating Co. (NASDAQ:PROP).

Reason 6: PRAIRIE’S BUY-OUT POTENTIAL

With majors like Chevron, Occidental, EOG, Civitas and Samson in its backyard, Prairie has a real opportunity to eventually attract a takeover suitor.

In fact, in the last few years alone, we’ve seen…

  • Oxy acquire Anadarko, one of the DJ Basin’s largest producers for $57 billion…

  • Whiting Petroleum Corporation buy Kodiak Oil & Gas for $6 billion to increase its access to the DJ Basin’s Niobrara shale formation, and…
  • Ovintiv (then Encana) take over Newfield Exploration Company for $7.7 billion to solidify its position as one of the DJ Basin’s top producers.

And the list goes on.

The company already has plans in place to start and grow production.

Assuming that the current predictions for production and cash flow hold true, Prairie could end up providing a lucrative exit via M&A.

In truth, I’ve only scratched the surface of the potential with Prairie Operating Co. (NASDAQ:PROP) .

With a 52 week range from $2.35 to $18.50 as of May 2024, this company has already seen phenomenal growth — 687.23% if you do the math.

But, in my opinion, the most exciting growth is yet to come.

To help you with your due diligence on the company, I’ve created a detailed special report titled

How You Can Be a Part of the American Shale Renaissance.

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IMPORTANT NOTICE AND DISCLAIMER: All investments are subject to risk, which must be considered on an individual basis before making any investment decision. This paid advertisement includes a stock profile of Prairie Operating Company (NASDAQ: PROP). Streetlight Confidential is an investment newsletter being advertised herein. This paid advertisement is intended solely for information and educational purposes and is not to be construed under any circumstances as an offer to sell or a solicitation of an offer to purchase any securities. In an effort to enhance public awareness, Prairie Operating Company (NASDAQ: PROP) provided advertising agencies with a total budget of approximately $1,000,860 to cover the costs associated with creating, printing and distribution of this advertisement. Streetlight Confidential was paid $45,000 as a research fee. In addition, Streetlight Confidential may receive subscription revenue in the future from new subscribers as a result of this advertisement for its newsletter. The advertising agencies will retain any excess sums after all expenses are paid. While this advertisement is being disseminated and for a period of not less than 90 days thereafter, Streetlight Confidential, the advertising agencies, and their respective officers, principals, or affiliates will not sell securities of Prairie Operating Company (NASDAQ: PROP). If successful, this advertisement will increase investor and market awareness of Prairie Operating Company (NASDAQ: PROP) and its securities, which may result in an increased number of shareholders owning and trading the securities, increased trading volume, and possibly an increase in share price, which may be temporary. This advertisement, the advertising agencies and Streetlight Confidential do not purport to provide a complete analysis of Prairie Operating Company (NASDAQ: PROP) or its financial position. They are not, and do not purport to be, broker-dealers or registered investment advisors. This advertisement is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a registered broker-dealer or registered investment advisor or, at a minimum, doing your own research if you do not utilize an investment professional to make decisions on what securities to buy and sell, and only after reviewing the financial statements and other pertinent publicly-available information about Prairie Operating Company (NASDAQ: PROP). Further, readers are specifically urged to read and carefully consider the Risk Factors identified and discussed in Prairie Operating Company (NASDAQ: PROP) SEC filings. Investing in microcap securities such as Prairie Operating Company (NASDAQ: PROP) is speculative and carries a high degree of risk. Past performance does not guarantee future results. This advertisement is based exclusively on information generally available to the public and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the advertising agencies and Streetlight Confidential cannot guarantee the accuracy or completeness of the information and are not responsible for any errors or omissions. This advertisement contains forward-looking statements, including statements regarding expected continual growth of Prairie Operating Company (NASDAQ: PROP) and/or its industry. The advertising agencies and Streetlight Confidential note that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect Prairie Operating Company (NASDAQ: PROP) actual results of operations. Factors that could cause actual results to vary include the size and growth of the market for Prairie Operating Company (NASDAQ: PROP) products and/or services, the company’s ability to fund its capital requirements in the near term and long term, federal and state regulatory issues, pricing pressures, etc. Streetlight Confidential is the publisher’s trademark. All trademarks used in this advertisement other than Streetlight Confidential are the property of their respective trademark holders and no endorsement by such owners of the contents of this advertisement is made or implied. The advertising agencies and Streetlight Confidential are not affiliated, connected, or associated with, and are not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made to any rights in any third-party trademarks.