Episodes

Get Into Oil Before It Hits $100 Per Barrel

Episode #360 | May 6, 2024

Episode #360 | May 6, 2024

Get Into Oil Before It Hits $100 Per Barrel

In This Episode

On this week's Stansberry Investor Hour, Dan and Corey are joined by Cactus Schroeder. Cactus is the founder and president of Chisholm Exploration – an oil and gas exploration and production company. As an oil expert with more than 40 years' experience in the industry, Cactus brings his vast pool of knowledge to the podcast for all things oil.

Cactus kicks off the conversation by describing the current economics of the oil industry, why rig counts are deceptive, what's happening with the Haynesville Shale and Marcellus Shale, and the upside in natural gas. He also explains why the Barnett Shale has become so attractive, how Chisholm Exploration differs from the oil majors, and how these larger companies essentially control the price of oil...

Five companies now control about 80% of the Permian [Basin]. You've got Chevron, Exxon, Diamondback, OXY [Occidental Petroleum], and Conoco. And those five companies control about 80% of it. So there's not really room for any little guy anymore.

Next, Cactus discusses why his company prefers oil to natural gas, earthquakes as a side effect of drilling, and how the Biden administration has been hampering exploration and pipeline development. He also details his experience in the Eastern Shelf region, including both good and bad wells and royalty interests.

Lastly, Cactus covers the oil major he finds the most interesting today, the green-energy movement, and what's on the horizon for oil. He brings up Saudi Arabia cutting oil production in an effort to make prices reach $100 per barrel, the consequences of the war in Gaza, and the ongoing fight between land ownership and mineral rights in different states. Here's why Cactus believes you should invest in oil today...

You use [energy] every day of your life, and you need to understand a little more about it. And I think not only is it a good investment, particularly at this time, but it's also a hedge against if oil prices go to $200 a barrel or natural gas prices go to $10. If you own some of this stock, it's a hedge against what's going to happen to you as these prices fluctuate.

Dan and Corey close things out by discussing the consequences of the Drug Enforcement Administration moving to reclassify marijuana as a Schedule III drug. They analyze what has been happening with cannabis stocks since the announcement and the tax implications behind the move. Plus, they talk about Starbucks' recent disappointing earnings report and what weight-loss drugs becoming more available could mean for the economy and certain stocks.