employing a lot. It should be an antidote to current US economic malaise?
Has the energy sector performance reached the tipping point? Innovation is also alive and well
in US. Together, can they save US from the $100 or so trillion public debt?
From: Energy and Capital <eac-eletter@angelnexus.com>
Date: Fri, Jul 27, 2012 at 11:20 PM
Subject: More Jobs than Obama Knows What to Do With
| |
More Jobs than Obama Knows What to Do With
By Keith Kohl | Friday, July 27th, 2012
They can't say we didn't see this rebound coming.
The signs of a natural gas rally were all there...
After all, it was only four years ago that natural gas prices topped off at $14 per MMBtu at the Henry Hub – and it's been a hard fall ever since.
Prices reached a new floor below $2.00 per MMBtu back in April.
Thankfully, the natural gas price story has taken a turn during the last three months.
Although we're still down almost 8% for 2012, prices have bounced more than 60%:
Of course, we're not actually expecting to see another pop to $14/MMBtu again.
And despite the record low 518 natural gas rigs operating (the lowest in 13 years) on U.S. soil, production is still heading higher. Data from the EIA reveals production from the various shale formations across the country is 24% higher than a year ago.
By the way, that rig count is expected to drop another 30 by year-end, leaving us with one solid option.
Before we go any further, let's have a quick recap...
Advertisement
How to Profit from the Demise of Hydrofracking
Hydrofracking has netted Big Oil billions of dollars — but this environmental destroyer is on its way out...
Now a cleaner alternative is making headway in America's largest shale formations.
The best part? This technology actually increases production by 80%!
To get your free investor's report, click here.
Marcellus Shale Boom Continues
The Marcellus Formation, which stretches roughly 600 miles across New York, Pennsylvania, Ohio, and West Virginia, is relatively new to the scene.
And it remains one of the best gas plays for investors...
You see, it wasn't until a few years ago that companies were able to commercially produce natural gas from the play.
How much gas are we talking about?
The EIA's 2012 Annual Energy Outlook estimated the formation held 141 trillion cubic feet of unproved technically recoverable natural gas (that's the amount estimated with reasonable certainty to be commercially recoverable).
Few other plays could boast having more.
The production growth alone since 2008 has been staggering — and nearly all of it has been coming from just one state:
The success in the Keystone State is reminiscent of the success seen in plays like the Bakken, something we've witnessed firsthand.
Advertisement
Have You Heard of "Black Solar"?
A tiny $1.00 tech firm in Upstate New York just did the impossible...
They unlocked the secret to harnessing solar energy by doubling the power output and cutting the cost in half.
This technology is so efficient and affordable, electric companies are already shaking in their boots.
Before the first big ticket contract comes, doubling the share price, click here to see why it's all the rage.
Got Jobs?
You'd be hard-pressed to open a newspaper or even stand in line at the grocery store today without hearing some complaint about job growth — or lack thereof.
Last week, Pennsylvania's Department of Labor announced the unemployment rate for June stood at 7.5%.
Meanwhile, residents of North Dakota have the veritable boom taking place in the Bakken to thank for their state's 2.9% unemployment rate.
And while the disparity between those figures seems great, they have something in common...
The oil and gas industry is responsible for the real job growth in both places.
Over the last year, employment in the mining and logging industry (which includes Pennsylvania's oil and gas sector) grew 21.2%.
And this same success story is unfolding across the United States...
In 2010, developing the unconventional gas deposits supported as many as one million jobs. In less than three years, it's projected that number will increase to 1.5 million jobs.
Even the drilling slowdown hasn't been as drastic in Pennsylvania as it has elsewhere...
A Marcellus Stock with a Strong Upside
Last week, I suggested investors take a closer look at Cabot Oil and Gas, one of the largest players in the Marcellus.
The last time I brought it up with one of my readers, they were adamant that there was no better opportunity than the major oil companies, like ExxonMobil.
And some of you might remember when Exxon made its first venture into the U.S. shale arena after purchasing XTO Energy for $41 billion...
I'll be the first to tell you it's easy for investors to be distracted by the big names.
But how do they stack up against smaller companies like Range Resources, the company that drilled one of the first successful Marcellus wells back in 2004?
Not even close:
Range Resources has experienced double-digit production growth for the last nine years — and that's even with the dramatic decline in gas prices since 2008.
There's an added bonus for investors in these huge shale plays, and it's not just the producers that will come out on top...
When it comes to our shale plays, we're looking at decades' worth of drilling still to come — and profit from.
But here's the rub for these drillers: There will be much more scrutiny over the production process than ever before due to hydraulic fracturing.
Talisman Energy was recently fined by the EPA for violations at 52 natural gas wells in Pennsylvania for failure to disclose health and safety information about the chemicals used on site.
Going forward, we're going to see even tighter regulation as the debate over hydraulic fracturing rages in the media...
That's why finding a way around these regulations is so valuable for drillers and investors alike.
Here's one company solving those issues that just set up shop last year right here in the United States.
Until next time,Keith Kohl @KeithKohl1 on Twitter
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.
The Bottom Line
Related Articles
Natural Gas Price IncreaseFaith in the Bakken Graphite Mining Stocks Three Natural Gas Stocks
Recently...
New Mines Coming Online SoonDon't Confuse These Two Oil Investments Muslim Terrorists Invade the Capitol Building! Energy and Capital's Weekend Edition 2012 Natural Gas Investments | |
This email was sent to jorgeus.george@gmail.com . You can manage your subscription and get our privacy policy here.
Energy and Capital, Copyright © 2012, Angel Publishing LLC, 1012 Morton St, Baltimore, MD 21201. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription. |
0 comments:
Post a Comment