The unexpected verdict is in. "We expect in 2015 the U.S. to be the largest oil producer in the world," says Fatih Birol, IEA Chief.
After scouring the globe for petroleum for the better part of a century, America's move to become energy independent has never been more real. This as the world's top energy forecaster has tapped the United States to eclipse Russia within two years and take over the top spot.
While the overall economy may be chugging along in low gear, professional money managers like Mark Kiesel of PIMCO say the emergence of American oil producers is a really big deal with widespread ramifications.
"It's a huge game changer," Kiesel says in the attached video. "The fact is, the U.S. is producing a million more barrels of oil a day now than it was just a year ago," he says, thanks in large part to newly developed oil and gas fields in North Dakota and Texas. "The growth rate in oil production is up 15%," he says.
For his part, Kiesel says the industry is highly regulated and is an investment that is best-played by "owning the premier producers in each area."
Along that line, in the Bakken shale, he names Whiting Petroleum (WLL) as a good candidate, as well as EOG Resources (EOG) in the Eagle Ford shale and Continental Resources (CLR) in the Permian Basin.
As for companies that will transport the oil to refiners, so-called "midstream suppliers" like MarkWest Energy (MWE) and Targa Resources (NGLS) are Kiesel's top trades in this space. The companies are up a whopping 48% and 32% year to date, respectively.
Incidentally, the additional supply has seen both crude oil and natural gas prices lagging the 24% year-to-date gain of the S&P 500m (^GSPC).
More from Breakout: