Welcome to the Energy and Capital Weekend Edition — our insights from the week in investing and links to our most-read Energy and Capital and sister publication articles.
To say that shale gas will play a major role in meeting our world's energy demand is an understatement.
Take a minute and think how far shale gas has grown in the last five years...
It wasn't until the success of the Barnett shale that U.S. drillers took notice. Although drilling the Barnett formation picked up considerably in the late 1990s, it wasn't until 2006 that drillers struck it big.
How To Make Money From Every Car Produced
Despite what you may read in the papers, the global auto industry is thriving…
In fact auto production world-wide is increasing 6% this year.
And after a four-year study, we uncovered how you could get paid from every single one made — no matter what happens to an automaker’s share price.
Two things changed the course of shale gas development in the U.S.
The first was the advancements made in horizontal drilling. The second is that changes were made to the Clean Water Act in the 2005 Energy Policy Act. This change exempted natural gas drillers from disclosing the chemicals used in hydraulic fracturing.
For now, let's push that hot-button issue to the side. I'll cover it at a later date, so feel free to vent your “fraccing” anger at that time.
The point is, shale gas development exploded. It's the main reason that our domestic natural gas production shot through the roof in 2008.
The shale boom extended beyond natural gas, too. Oil plays like the Bakken formation in North Dakota became wildly successful for investors.
It's a story my readers at the $20 Trillion Report know that all too well. In fact they just recently earned a quick 33% gain after playing an upcoming Bakken producer.
Piggybacking on the U.S. shale fortune, both China and India are also looking to tap shale resources.
Reliance Industries, India's biggest company, has made three shale gas investments in 2010. Some of you might remember when Reliance picked up a 45% stake in Pioneer Resources' Eagle Ford shale assets for a cool $1.13 billion...
Now, the company is making a move into the prospective Horn River Basin in British Columbia. This time, their sights are set on Quicksilver Resources. As you know, I believe the Horn River Basin to be one of the best-kept secrets in natural gas discoveries.
China is taking a cue from the same investment page.
However, their target is much closer to home. ExxonMobil is supposedly in talks to develop an unconventional gas field the Ordos basin, located in northern China.
Now I'll admit that ExxonMobil hasn't been on my good list; I wouldn't normally trust ExxonMobil to have much success in China.
However, I think their chances are much better after acquiring XTO last December.
For now, I'm sticking with the proven winners in U.S. shale — and so should you.
Enjoy your weekend,
Keith Kohl
Editor, Energy and Capital
P.S. Feel free to kick back and catch up on the top stories that have recently crossed my desk.
Options Investing Made Easy: How the Experts Trade Options
Most traders avoid trading options at all cost. The reason? They simply don't understand how to do it. And trading options can be more lucrative than stocks and bonds. Imagine pulling-in a 338% gain in under two weeks! Let options guru Ian Cooper show you how easy it really is.
Oil's Game-Changer: Why the BP Oil Spill is more Profitable than Ever
Three months ago, the U.S. oil industry changed forever. Yet the fallout from the BP disaster isn't over; even now the public is screaming for heads to roll. In typical government fashion, the knee-jerk reactions by vote-hungry politicians is keeping the drillers out of the water. For three of our favorite oil stocks, however, the profits have just begun.
Investing in Offshore Oil Stocks: They Panic, We Buy
Energy and Capital's Keith Kohl reveals six offshore oil stocks that are worth a second look to investors.
Energy and Metals Outlook for 2010: How to Invest for the Rest of the Year
Energy and Capital Editor Ian Cooper assesses the success of energy trades in the first half of 2010, and offers two ways to turn a profit in the second half.
The Decline of the U.S. Dollar: And the Perfect Scenario for Rising Gold Prices
Editor Greg McCoach gives the hard facts about the future of the U.S. dollar and recommends two ways to minimize the wealth.
The End of the Bush Tax Cuts: The Hammer is About to Fall
Editor Steve Christ examines the end of the Bush tax cuts and explains why it won't be painless.
Herpes, The Jersey Shore, and Trading Secrets 11-20: Snooki Rings the NYSE Bell
Wealth Daily Editor Christian DeHaemer connects the Jersey Shore with herpes and, as promised, brings readers #11-20 of his trading rules.
Green Options: Twice the Money in Half the Time
Green Chip Editor Nick Hodge discusses a lucrative yet often misunderstood way to invest in everything green: green options trading.
Subscribe to
I was glad to see your comments about XOM and XTO as I own stock in both companies and I own working interest in a number of wells which XTO operates. We should start to drill another Smackover formation well (12,000 ft.) next week. XTO, in my opinion is a great company with some excellent employees. I have had very good working relationship with them for a number of years. I think XTO is a great addition for XOM
So you think that it is a good thing that natural gas drillers don't have to disclose chemicals they are using in their drilling? Well, it is sure that you're not drinking the water in that area!! If drillers weren't trying to hide some toxic chemicals why would they be trying to exempt themselves from disclosure requirements? Energy and Capital has held itself up as believing in the PeakOil theory and the New Energy economy of shortages of Petroleum. Part and parcel of this is a greater dependence on the natural world. Your acceptance and agreement with these non-disclosure requirements is symptomatic of the old way of doing business: ripping out the resources and not caring about the environment and people who live in surrounding area of these resources.
http://gaslandthemovie.com/
fit into your plan here?
Is natural gas an answer or just another disaster like the gulf but slower to come to light?
I grew up in Oklahoma and have heard stories that fit in with GasLand's premise to a tee all my life.
I believe we need real answers to our growing energy crisis.