How the Shale Oil Boom Affects the U.S.

Updated
How the Shale Oil Boom Affects the U.S.

The boom in shale oil and gas has been a swoon for many companies, but few have taken greater advantage of it than refineries in the past couple years. With a lack of infrastructure to move crude from these new energy plays, several refiners in the U.S. have had the benefit of paying discounted prices for feedstock. There is so much light crude coming out of the ground that some refiners are now exporting refined products overseas to make up for the lack of demand in the U.S.

The question remains, though, whether this trend can continue. By increasing takeaway capacity from shale plays, it's very likely that producers will be able to command a better price point for these new sources of U.S. crude. We have seen this for several years with the oil and gas sector: Big fluctuations in local production and price have eventually reverted back to the average. Will this time be different? It's hard to say, so tune in to the video below where Motley Fool analysts Joel South and Michael Olsen, and Fool.com contributor Tyler Crowe, take a look at what may be in store for the oil boom in the U.S..

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The article How the Shale Oil Boom Affects the U.S. originally appeared on Fool.com.

Joel South has no position in any stocks mentioned. Michael Olsen, CFA has no position in any stocks mentioned. Fool contributor Tyler Crowe has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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