The oil world turned upside down–and how to invest in the rise of the U.S. to top global producer by 2017

Five years ago I never imagined I’d type these words.

By 2017 the United States will overtake Saudi Arabia as the world’s largest oil producer.

In addition, according to the International Energy Agency, by 2015 the United States will overtake Russia to become the world’s largest natural gas producer.

The United States is now the fastest-growing oil and natural gas producer in the world. During the last five years, according to Citigroup, the United States has added 2.59 million barrels a day to total production.

You’d think there’s an investable angle there somewhere.

I can think of two. No make that three.

First, there are the stocks of the companies that are responsible for this huge surge in U.S. production.

Second, there are the stocks of the companies that will make money from solving the current bottleneck in getting this supply to market.

Third, there are the sectors in the U.S. economy that will reap benefits from lower U.S. energy prices beyond the general advantage flowing to the U.S. economy from lower energy costs.

Let me start with the general picture and then move to individual sectors and trends. Read more