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Obama's Hunt for International Shales Plays

Energy and Capital's Weekend Edition

Written by Keith Kohl
Posted April 11, 2010

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 publications.


He thinks the world doesn't have a clue, but he's wrong...

Shortly after Obama's attempt to appease the "Drill, baby, drill!" crowd by opening up offshore drilling along the Atlantic coastline and the Gulf of Mexico, he's now looking across the ocean to help their shale gas development.

This week, the Obama administration is looking at the shale resources of nearly a dozen other countries. If allowed, the USGS would head over to the respective country and assess for the country's shale gas potential.

Unfortunately, it appears that the Obama administration hasn't been paying attention lately. The rest of the world already knows what shale can do.

For starters, the fact that U.S. natural gas production is on the rise (one of the reasons that North American supply and demand is out of whack right now) is a good indicator.

And then there are the direct moves some countries are making...

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French oil company Total SA is shelling out $2.25 billion for a 25% stake in Chesapeake Energy's Barnett shale operations. I don't think they could have picked a better company to work with — Chesapeake is developing shale assets across the United States.

But these deals are nothing new to my Energy and Capital readers. During the last several years, we've witnessed European oil and gas companies like BP and Statoil make similar deals. Even Eni S.p.A., an Italian oil and gas company, paid $280 million in 2008 for a share in Quicksilver Resources' Barnett Shale operations.

Whether or not the countries take Obama up on his offer remains to be seen. Either way his hunt ends, you can bet I'll find those shale gas stocks ahead of the curve.

Until then, I'll stick with what works for my readers and I — namely those undervalued oil and gas gems operating in the shale basins across the U.S.

Enjoy your weekend,

keith kohl

Keith Kohl

Energy and Capital

P.S. In case you missed any of the week's top-read articles from Energy and Capital and our sister publications, I've included them below:

North Dakota's Recession-Proof Secret: The #1 Oil Play in the Country Just Got Hotter
Energy and Capital readers are capitalizing on what the oil industry is hailing as the best oil play in North America. So far, the Bakken has been put readers into a win-win situation: pocketing gains of 452%, 114% and 137%! Continue reading this new report and find out how you can join in the profits...

Making Hydraulic Fracturing Cleaner: Industry Insider Explains 'Green' Fracking Technology
Energy and Capital guest editor Keith Schaefer offers a closer look at why the hydraulic fracturing process isn't as bad as opponents say. Find out why this revolutionary technology is greener than you think.

Washington's Other Undeclared War: Congress Battles Your Retirement
When was the last time you were concerned about your retirement savings? The sad fact is that most American citizens have no idea how close they are to losing their hard earned money — all at the hands of Congress. Read our latest report and learn how to protect your wealth.

How Market-Makers Impact Stocks: Is the Energy Investment Game Rigged?
Energy and Capital Editor Nick Hodge explains the real factors behind your latest investments. Here's a hint: It's not just a numbers game.

Dividend Stocks for 2010 and Beyond: How to Leave this Ship of Fools Behind
Wealth Daily Editor Steve Christ looks back on a recent trip to our nation's capital, reflecting on readers can save their retirement from being stripped away.

How To Pick a Junior Gold Stock: Wealth Daily's Strategic Guide to Junior Gold Stocks
Editor Greg McCoach provides a how-to guide for picking junior gold stocks and explains the criteria you should be using to come to an investment decision.

Latin America's Top-Performing Stocks: The Top Plays on Emerging Latin America in 2010
International Editor Sam Hopkins gives readers a fresh insight into Latin America's growth, paying particular attention to several opportunities opening up for investors.

Oil Headed to $100-$110 Near-Term: My Updated Predictions for Crude Oil Prices
Wealth Daily Editor Ian Cooper discusses his latest oil prediction for triple-digit oil prices... which may come a lot sooner than you'd expect.

Hydrogen Fuel Cells: The Downfall of Tesla?