Koil Energy Solutions Inc. (KLNG)

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Pick up the current issue of Atlantic Monthly where they have a before and after graphic of the Khandahar oilfield in Saudi Arabia. Major shrinkage. Basically, they are increasing production efforts while output has decreased. They are still MAJOR producers, but it is dropping. They are spending more, putting in more wells and the clock is ticking as to when Saudi Arabia can no longer be the buffer producer in the world supply. Without them upping efforts at different points, there would have been major oil shocks in the past 24 months as the global daily demand would have had a shortfall they otherwise were able to cover up.

Simultaneously, the China effect is severe in that they are pushing into any areas in Africa and Latin America they can to get a claim on oil production, not to mention their taking stakes in the oil sands in Alberta, Canada. China is become the world's biggest polluter rapidly and before long the emphasis some people give to the U.S. as having imperialist policies will shift to China too. Whereas China got their foot into the doors of some third world country oil opportunities because they played on their being the anti-American alternative China has played their cards to the point they are now seen by many of those they've done oil deals with as violent and underhanded as any other large country was before them.

AND the real dominant factor is now Russia. Not only do they have the most oil and will take the reins as the dominant oil producer, they will only grow in influence as America-friendly Saudi Arabia's capacity starts to decline. As the Northwest Passage thaws you will see Russia try to pre-empt claims in the North above Canada partly to expand their claims, but also to prevent others from getting anything that does not come from Russia.

All of these competing superpowers are carving up their geo-political plays. These are yet more reasons you'll see the Gulf of Mexico explode in exploration activities.