A contango—such as we are now seeing—is when the current cash price of oil is lower than the projected price for a date in the future, explains Alex Martinelli, editor of Energy & Capital.

This means prices are surely going up in the future, so companies will do everything in their power to wait to sell oil in order to get the most profit possible.

A lot of companies will store oil instead of selling it. The problem is that it's difficult to predict when the market will move up enough to make oil storage worth the time and money.

The sure thing for investors in a contango is usually tanker stocks or onshore storage companies. Offshore tanker company Teekay Tankers Ltd. (TNK) saw its revenue jump to $75.9 million last quarter, beating all analyst expectations.

A lot of this extra money can be attributed to the contango phase, causing oil producers to pay Teekay to store oil offshore. We expect the first quarter numbers for 2015 to be even better.

The company also pays a 2.2% dividend that will hold us over while we wait for the shares to go up as the contango deepens.

Tesoro (TSO) has multiple storage and refinery operations in five states in the US-including California, North Dakota, and Utah-three states in which it is the only company with similar operations.

Tesoro has over 20 refined product terminals in the Western US and has the ability to store, market, and refine crude oil for sale, which is incredibly valuable during the contango.

Its shares are a bit pricey, but are worth watching over the next few months, despite its large price tag. And because of the contango, Tesoro stands to make a lot of money.

Meanwhile, there is a new way companies are taking advantage of the oil contango. EOG Resources (EOG), a significant shale oil producer, recently announced that it plans to store its oil underground.

When fracking an oil well, there are two distinct phases of production. The first is drilling and the second is completion. What EOG and other companies are doing now is only finishing the first phase of production.

By drilling the well without completing it, they are leaving oil stored underground until prices allow fracturing to be more profitable.

At the end of 2014, EOG had 200 wells ready for completion and the company plans to have 285 ready by the end of 2015. This means that whenever oil prices go up significantly, the company will pump a windfall amount of crude and stay profitable.

This is a great innovation for the oil market, especially during the contango phase, which is why we're suggesting investment.

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