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Saturday, April 11, 2015

Independence Day 2.0: The Exponential Shift No One Is Talking About

http://www.drillingcontractor.org/analyst-numbers-show-that-us-is-drilling-its-way-to-zero-net-oil-imports-15686

You can hear some of the most respected minds in Economics say it. 

You can wander into a 'conspiracy theory' niche on the internet and get bombarded by it. 

They all say with heart felt intent and patriotic concern the same thing. 

They say that the American Dream is over. It has been hijacked by the 'Illuminati' or by the 1 percent of the one percent or by Wall Street, or by shape shifting aliens, whatever... 

And on the horizon, they all say, is a bond market bubble that is going to burst and what follows is The Apocolypse. 

Inflation and deflation will unite to make the hyper inflation of Wiemar Germany look like an Armageddon Disneyland for America where cats and dogs get along and all nature of bad things happen.

No one is talking about America's meteoric rise to energy independence. This exponential shift was not ordained by the policies of the Left of Right. Bush or Obama had nothing to do with these numbers.

It is an awesome, engaging almost biblical story for anyone who cares take a look. 

It is the story of a worldwide trend in where the Middle Class is decoupling from Federalism. It is where States, counties and small business entrepreneurs are using a plain ol' geter done mind set to rework world markets once thought to be the domain of the untouchable few.

Numbers don't lie. 

Independence Day 2.0!

Beautiful...


Don't know but it's exciting as all heck!!!

Stay tuned.

Thursday, April 9, 2015

Cowboyistan: How American Good Ol' Boys Are Kicking OPEC Butt

http://www.forbes.com/sites/christopherhelman/2015/03/09/welcome-to-cowboyistan-fracking-king-harold-hamms-plan-for-u-s-domination-of-global-oil/


America is doing what many market analysts only a few years ago would have said was impossible.

Not only are we again the World Champion Oil Producer of all time but the tidal wave of oil production across 3 'fracking' regions in the US have surpassed the output capacity of all but 2 OPEC members states.

http://www.forbes.com/sites/christopherhelman/2015/03/09/welcome-to-cowboyistan-fracking-king-harold-hamms-plan-for-u-s-domination-of-global-oil/


How is this possible? 

Welcome to Cowboyistan.

The differentiator says fracking pioneer Harold Hamm, is the Three R’s: Rigs, Rednecks and Rights.

“We’ve got more rigs running than in the rest of the world combined. We’ve got highly trained and reliable rednecks to run them. And unlike anywhere else on the planet, we’ve got property rights, which enable landowners to lease out their acreage and receive royalties for their trouble. That’s what sets us apart.”

What does this mean for the long term?

Hamm believes the USA can over time become the most important oil-producing country on planet earth, usurping the throne from Saudi Arabia and the OPEC oil cartel.

Giddup! Yee Haw!!

Wednesday, April 8, 2015

Invest In Oil - American Small Business On The Move

King Abdullah ibn Abdul Aziz in 2002
King Abdullah ibn Abdul Aziz in 2002 (Photo credit: Wikipedia)
For those thinking about investing in oil.

The Petro-Dollar, what is it?

How did it come to be?

May sound like a simple question but it's an amazing story which has ramifications that reverberate today.

Legend has it that back in the day French President Charles de Gaulle didn't trust America's elite.

He decided to trade dollars for gold. This action sent a wave through the market as others followed, and as a result, President Nixon killed the gold standard for the US dollar.

What followed was Henry Kissinger supposedly went to Saudi Arabia and said 'Hey... We've got the guns. You have the oil. Let's do this thing...' And the petrodollar was born. As a result, Saudi Arabia, OPEC, and the rest of the world accepted the US’s request and started using US dollars for all oil sales.

But today, American small business with it's unbridled ingenuity is taking US oil land that was once left for dead and is bringing it back to life through recent technological advances.

It looks as if American entrepreneurs have quietly overthrown the 1 percent in a silent revolution that has made America the number ONE oil producer of the world again.

And this very fact begs the question: Is this mid-east turmoil we see with Al-Queda, ISIS, ISIL or whoever, an organic occurrence of mid east instability or is it a last ditch effort organised by the few in an attempt to avert the middle class and American Dream from re-igniting?

Saudi Arabia has to borrow money?

Things on the world stage are changing rapidly.

This story of how small business made the USA top Oil producer of the world again is so fascinating once you dig in it's hard to let go.

God Bless America.

Stay tuned...

Tuesday, April 7, 2015

Oil and Gas Investing Knowledge Base: The Horizontal Drilling Method

For anyone thinking about investing in oil or gas it is necessary to be educated and informed about the industry you may decide to invest in.

There is an American Renaissance happening in the extraction and production of oil and natural gas from the ground. It comes from the advances made from horizontal drilling technology which was invented in the USA and has been refined to an art form over the past few decades.

It is this advancement that is responsible for America returning to the top tier as one of the World's best performing natural gas and oil producers.

This video gives us a full 3D journey into the process and gives the investor food for thought when embarking on the due diligence necessary to make the proper investment choices.


Want to stop Iran’s nukes? Use less oil

Petrodollars have been financing Teheran’s nuclear program for almost two decades

from The Times of Israel 

Energy Crisis: Tribe's Brief Constrain, Uncomfortable for Obama

Oil and gas investments along with coal have been plagued for years with a factor of fear which is unique to the energy sector. Has any other commodity ever been disparaged and demonized they way fossil fuels have? The stories of global warming, homeless polar bears and baby seals along with the end of life as we know it are relentless.

Official photographic portrait of US President...
Official photographic portrait of US President Barack Obama (born 4 August 1961; assumed office 20 January 2009) (Photo credit: Wikipedia)
Just as fierce are public policy advocates such as Lord Monckton who document and publish data which proposes that the theory in which CO2 emissions effect climate is unsupported by scientific fact. And it is their mission at  the Science and Public Policy Institute to 'support the advancement of sensible public policies rooted in rational science and economics'.

But the fun doesn't stop there. The greenhouse gas debate has a recent added, almost Soap-Opera-like dimension to it. The dramatic outcome of which could have far reaching implication for coal, oil and gas investment and the entire energy sector. 

Laurence H. Tribe, still talks about of the POTUS as a proud teacher would of a star student, “He was one of the most amazing research assistants I’ve ever had.” However many Democrats and prominent members on the Liberal Left see Tribe as a traitor

Mr. Tribe 73 the highly regarded liberal scholar of constitutional law, has been retained by Peabody Energy, the nation’s largest coal company, in its quest to block an Environmental Protection Agency regulation that would reduce CO2 emissions from coal-fired power plants — the heart of Mr. Obama’s climate change agenda.

Mr. Tribe argues in a brief for the case that in requiring states to cut carbon emissions, the E.P.A. is asserting executive power far beyond its lawful authority under the Clean Air Act and likened the climate change policies of Mr. Obama to “burning the Constitution.”

One can expect that this fight over the E.P.A. regulations will take years and eventually go before the Supreme Court. If it does, Mr. Tribe may play a role in that case as well.

You can read all the juicy tid bits in the full New York Times article here. 

The European Stocks QE Has Yet to Lift

On November 17, gas prices had dropped to $1.9...
On November 17, gas prices had dropped to $1.99 in Bakersfield, California, due to falling Oil prices (Photo credit: Wikipedia)
A rising tide lifts all boats, or so they say. The European Central Bank’s $1.1 trillion asset buying program, an export-friendly slump in the value of the euro and falling oil prices have sent European stock prices surging this year.

Investors have bet successfully on cyclical and defensive stocks with international exposure. Indexes have soared higher. The Stoxx Europe 600 index of leading European shares is up 18%. The FTSE 100 is up 4.1%, the Cac 40 up 19.2% and the Dax up 22%.

But that doesn't mean everything is keeping pace. Here are the sectors for which events elsewhere are proving a drag on performance, leaving big-cap stocks in the shadow of their indexes.

Commodities

London-listed Anglo American is Europe’s worst-performing blue chip stock this year, down 17% though bigger rivals Rio Tinto and Glencore are also in negative territory. As producers of commodities like iron ore and coal, whose prices have fallen sharply, the miners’ fortunes are closely linked with slowing growth in China. What might change? Anglo American puts its faith in platinum, of which it is the world’s biggest producer, counting on better demand and prices from “increased demand for new cars across Europe… given its use in catalytic converters,” says spokesman James Wyatt Tilby. For the sector as whole, watch China, says Dennis Jose, equities strategist at Barclays. Recent signs of more determined economic stimulus from Beijing might bolster industrial activity and demand for raw materials.

Steel

Shares in ArcelorMittal, the world’s biggest steel maker by shipments, are down 5% so far this year. The group is also a major iron-ore producer in its own right so has suffered from falling prices. Growing Russian and Chinese exports have contributed to weak steel prices on export markets. “While ArcelorMittal hopes to overcome these challenges via cost cutting and increased focus on high-margin steel products sold into the automotive sector, which should benefit from a weaker euro, the company faces a steep uphill battle over the coming year,” says Jefferies analyst Seth Rosenfeld. ArcelorMittal declined to comment.

Power

Europe’s power utilities have long been caught in a perfect storm of slow growth, rising taxes, and weak wholesale prices. The sector is still adjusting, hence investor neglect that has left the likes of Centrica in the U.K., RWE of Germany, and EDF of France among the year’s worst laggards. A rebound may hinge on investors seeking out value in the once-defensive sector which is benefiting from record-low funding costs, assuming investor interest in export stocks fades and Europe’s economic recovery takes hold, says Rob Griffiths, global equity analyst at Credit Suisse.

Crops and Clothes

Among the biggest decliners in Europe this year is Associated British Foods, down nearly 10%. The family-controlled company is an unusual hybrid. As a big producer of sugar and fodder, the group has suffered from the global malaise of weak raw-material prices, stretching from crude oil to copper. But ABF also owns Primark, the rapidly growing European fast-fashion retailer, which competes with the likes of H&M and Inditex’s Zara. Improving consumer confidence in Europe and more stable commodity prices might yet prove a powerful mix at ABF. “It is hard to see a better structural growth story in the [staples] sector,” say analysts at Credit Suisse. ABF declined to comment.

- Alex MacDonald contributed to this post.





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Monday, April 6, 2015

Carlyle Group: All-In On Energy

Carlyle Group Historical Logo
Carlyle Group Historical Logo (Photo credit: Wikipedia)
Oil prices have fallen from over $100 a barrel in the summer of 2014 to under $50 today. Oil companies have respond  to the tumble in prices. Big players have slashed spending and laid off workers. But where some bite the bullet others hear opportunity knocking.

"We're very bullish on the energy sector. In fact, we'd say probably there is no other sector in the world that we are as bullish on as we are on energy," said David Rubenstein, the co-founder and co-CEO of private equity firm The Carlyle Group, on CNBC Monday.

Fewer Oil Trains Ply America's Rails

Princes Risborough railway station (4) - geogr...
According to the WSJ the growth in oil-train shipments fueled by the U.S. energy boom has stalled in recent months, dampened by safety problems and low crude prices.

Or does the Oil producers need to invest in more oil storage facilities. Could the stalled rail cars are a new storage strategy for an American oil market bursting at the seams?

Wouldn't that be something?


from WSJ.com: Markets