{"id":21913,"date":"2011-06-24T12:10:53","date_gmt":"2011-06-24T16:10:53","guid":{"rendered":"http:\/\/www.investmentu.com\/?p=21630"},"modified":"2011-06-24T12:10:53","modified_gmt":"2011-06-24T16:10:53","slug":"with-oil-falling-nows-the-time-to-strike","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/06\/24\/with-oil-falling-nows-the-time-to-strike\/","title":{"rendered":"With Oil Falling, Now\u2019s the Time to Strike"},"content":{"rendered":"

With Oil Falling, Now’s the Time to Strike<\/a><\/p>\n

by Matthew Carr, Investment U<\/em> Research
\nFriday, June 24, 2011<\/p>\n

What a rough month for oil…<\/p>\n

Oil was already on a slide – down 16 percent in two weeks. Then the International Energy Agency (IEA) announced it’s releasing 60 million barrels of oil from its Strategic Petroleum Reserve. On top of Federal Reserve Chairman Ben Bernanke stating that U.S. economic growth is slowing. The two pieces of news stepped up the shelling of crude prices.<\/p>\n

West Texas instantly slid four percent. And the speculative benchmark Brent fell even further.<\/p>\n

But that’s okay.<\/p>\n

Because this is a tremendous window of opportunity for investors. Don’t run away from the oil sector – embrace it…<\/p>\n

Despite High Oil Prices, Exploration and Production Increasing<\/strong><\/p>\n

In its most recent Global E&P Spending Survey<\/em>, Barclays Capital reports that worldwide oil exploration and production (E&P) spending will top $500 billion in 2011. An historic high-water mark. And a 16 percent increase over last year.<\/p>\n

Despite high oil prices<\/a>, the world still needs the commodity.<\/p>\n

The U.S. Energy Information Administration (EIA) estimates world oil consumption will top 88.4 million barrels per day this year – a 1.7-million-barrel-per-day increase over 2010. Of course, of that per day increase, China accounts for 700,000 barrels.<\/p>\n

We all know economic expansion drives oil demand. China’s economy will grow another 9.6 percent this year. And its oil demand will increase another 550,000 barrels per day in 2012.<\/p>\n

Chewing on all that information for a moment, we can already see that the IEA’s 60 million barrel release doesn’t even cover a day’s worth of oil. Especially when you factor in that the plan is to release two million barrels per day over a 30-day span.<\/p>\n

Oilfield-Service Companies at a Bargain Price <\/strong><\/p>\n

So, armed with all of this, and crude’s retreat, it’s time to snag some oilfield-service companies<\/a> at a bargain price. Let’s look at two companies:<\/p>\n