africa: the next oil boom. kenya specified.

Looks like the Energy & Capital web-site is about to start promoting oil explorers in Kenya.

Take note of the last few paragraphs.

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Oil

And right now, like always, everyone wants oil.

The world is running out of the cheap, easy-to-find-and-produce kind. That's right - they found all the oil that's likely to be found in Texas and Saudi Arabia. Now the wildcatters and speculators are poking in those dark and murky places they left behind.

Wells unconsidered 10 years ago - deep in the frozen Arctic and miles under the ocean floor - are now being funded. Light is being shed on every miserable corner of the globe.

Places like Somalia, which always had too unstable a government to explore prior, are being talked about. Other places like Mongolia, Columbia, and Kenya have seen their government mature and become stable.

Oil that was unsearchable when explorers were getting their heads cut off on YouTube is being found today.

People who know this and show up early are the ones who see the biggest gains...

I've seen it happen over and over again: Tullow, Heritage, Dragon Oil. I could name 15 off the top of my head.

Now these people are going to Kenya - a country that doesn't produce any oil yet and that is undergoing a fuel shortage.

It seems speculators bought up the majority of the 19 million liters the country had in storage, and they don't want to sell. When the gasoline started running short, motorists stocked up, worsening the shortage. This has the population angry and the government pointing fingers.

That said, if geologists are correct, Kenya will soon switch its worries from a shortage of fuel to an abundance.

You see, Kenya is on the lower end of the East African Rift - a continental plate called the Somalian Plate that broke from the Arabian Plate some 65 million years ago during the Cretaceous Period.

Before that, what are now Arabia and East Africa was a fecund, shallow ocean. Over millions of years, animals and plant matter died off, sank to the bottom, and were transmogrified into the world's greatest oil well: the Ghawar in Saudi Arabia.

The plates then broke off and the oil field was split.

We know there is oil in Yemen, Somalia, and Ethiopia. There is oil just offshore Kenya in the Indian Ocean. There is oil in Uganda to the west and in the Congo to the south.

And right now, due to a stable democratic government and regional peace, every major oil company from around the globe is rushing to Kenya in hopes of finding the mother lode.

But as always, a handful of smaller, nimble wildcatters got there first...

I'll be giving my Crisis & Opportunity readers first crack at them, starting next week. Join us.

Sincerely,



Christian DeHaemer
Editor, Energy & Capital

The article:
http://www.energyandcapital.com/articles/the-next-oil-boom/1520