America will become the largest oil producer in the world by the end of the decade and is currently neck and neck with Russia in natural gas production. 

I am sure you’ve already heard all that, but if you haven’t, let it sink in for a second… We’ll produce more oil than Saudi Arabia and Russia, and since 2008 the U.S. has jumped from the sixth largest natural gas producer to No. 2… and it’s all thanks to hydraulic fracturing, or fracking. 

Today, the majority of shale oil in this country comes from the Bakken formation in North Dakota and Montana and the Eagle Ford, which stretches across south Texas. 

Another area of interest is the natural gas-laden Marcellus shale, which is notable for its size. It stretches through parts of New York, Pennsylvania, Ohio and West Virginia. It may cover the most area on the map, but the Marcellus is not the “biggest.” 

That distinction goes to the Monterey Shale in the Golden State. The area is relatively small, stretching from southern to central California and encompassing only about 1,750 miles. But its production definitely isn’t.

Despite its size, the U.S. Energy Department says the Monterey Shale contains an amazing 15.4 billion barrels of crude oil, making it one of the most valuable energy assets in the world. That’s more oil than the Bakken and Eagle Ford fields combined.

While most of California’s oil (the state already ranks No. 4 nationwide in production) is only about 2,000 feet below the surface, the black gold in the Monterey Shale lies beneath nearly three miles of sedimentary formations. 

But 15,000 feet of rock ain’t what it used to be. 

New drilling technology is enabling oil companies to capture the oil and gas in the Monterey as easily as they tapped the crude in California’s storied Midway-Sunset field, which fueled the state’s long-ago oil boom.

These new methods of drilling are being utilized across the country in a number of other major shale formations:

The ramifications of all this oil and natural gas production are significant, and their reverberations across the energy sector will be felt by your children and likely your grandchildren’s kids as well. 

While most people are looking to invest in companies sitting on the most oil, I want to own a company that makes money working for all these oil and natural gas companies. These kinds of “pick-and-shovel” investments are some of the best ways to make profits in booming industries.

Between the seven major U.S. shale plays, oil and natural gas producers paid out an astonishing $54.3 billion in oilfield service expenditures in 2012 alone, according to Clover Global Solutions. One company going after a piece of the $54 billion pie is fairly new and little known. But it’s starting to make its way into the headlines.

You see, tapping into all of that gas buried under shale formations hasn’t been without controversy. The process of fracking uses many chemicals and can leave tainted wastewater behind. So gas producers are looking to clean up their act, investing more time and money to make sure that the entire process leaves a more benign environmental footprint.

You can already see their efforts to clean up in the sales profile of Pennsylvania-based Heckmann Corp. (NYSE: HEK). The company transports fresh water to fracking sites, then it removes wastewater after the fracking process has begun, though a network of trucks and dedicated pipelines. With drillers now taking environmental concerns more to heart, they’ve been turning to Heckmann with increasing frequency.

Leading up to its recent quarterly earnings report, Wall Street analysts were bracing for a $5 million ($0.03 per share) loss. Instead, the company delivered a $5 million profit. (Keep in mind: this is a company that didn’t even have customers five years ago.)

Sometimes, these “beats” are attributed to cost-cutting initiatives rather than true top-line business expansion. But that’s not the case here.

Revenues for the fourth quarter soared past expectations, reaching $113 million. That’s a powerful 119% increase from the same quarter last year.

Management sees this momentum continuing. After doubling to $352 million this past year from $156 million in 2011, revenues are now forecast to double again to a minimum of $750 million in 2013.

If predictions that the U.S. will become the largest oil producer in the world over the next seven years come true, I expect Heckmann to continue growing.

Risks to Consider: Still, regulation could hamper fracking in the U.S. and make it less profitable for drillers. That would deliver a serious blow to Heckmann. 

Action to Take –> But I think there is too much potential in the energy revolution for the government to hamper it too much. Look for Heckmann to trade above $5 a share by the end of the year, or nearly 25% higher than current prices.

P.S. Heckmann is just the tip of the iceberg… The abundance of oil and natural gas in the United States will lead to the third industrial revolution. One analyst is predicting a stock could rise $1,566%. Another stock has already jumped more than 1,000% and is expected to keep going. To learn more about investing in the shale boom, click here.