For Investors: Buzz on the Street -- Wow: I'm More Bullish Than Ever on the Bakken

Updates

March 14, 2011, five hours later: Devon Energy/CEO notes that there are multiple sources of energy, but when one source of energy is constrained, the cost of the other sources of energy go up. So, when nuclear energy is constrained, the price of oil and natural gas will go up, all else being equal.

March 14, 2011, one hour later: CVX/CEO featured on "Closing Bell," CNBC. CVX will focus on liquified natural gas going forward. Short term, nuclear reactors in Japan off-line; will need heating oil, natural gas, etc. Long term impact not known. [Japan will rethink nuclear energy.]

March 14, 2011, one hour later: price of oil will actually be up for the day, even as Japan demand destruction continues.

Original Post

Two interesting data points that Jim Cramer ("Mad Money," CNBC) makes:

• Nuclear energy is "dead" for the next few years in the US (no new approvals; older plants looking for re-licensing will be denied)
• Current administration favors using 40 percent of corn crop for ethanol

Conclusion Cramer draws from these data points:

• Natural gas will be the winner

It is interesting to see that something drove the price of oil down (all the way to $100; wow, he said with tongue firmly in cheek; noting the recent high never hit $106, and pundits feel fundamental value of oil, based on supply and demand, is south of $60/bbl) but oil has now recovered, and is, in fact, back up over $101. Folks, $100-oil is very bullish for the Bakken companies. Dow leaders today include CVX and XOM. With CVX and XOM up on a day when the market plummets (third day in a row?) suggests that these investors think price of oil will trend higher.

Sometime ago I opined that investors have had three opportunities to invest in the Bakken. I wonder if we are seeing the fourth opportunity? 

Of course it is coincidence, but it is interesting that on the very day that natural gas looks better and better as the bridge to energy independence, MDU names a new president/CEO for its natural gas and oil production division.

As long as I'm rambling, here are some interesting commentaries from the past:

• Hess: At $40/Barrel, the Bakken is Robust, 4Q09
• $100 Oil Talk is Self-Fulfilling Talk, November 11, 2010
• Holding Bakken Acreage As Good As Holding Gold, September 28, 2010

And again I ask, are we seeing a fourth opportunity to invest in the Bakken?