Obama Oil Investing

Jeff Siegel

Written By Jeff Siegel

Posted November 12, 2012

The “end of the world” rhetoric is so ridiculous, it’s laughable.

First, it was the end of the world when Bush was reelected…

Now it’s the end of the world because Obama has been reelected.

But guess what? Regardless of who you voted for, the world isn’t going to end based on which snake is nesting at 1600 Pennsylvania Avenue.

This is merely another victory in a long line of victories for those who have no interest in doing anything but giving reach-arounds to big-money donors — and you’re not one of them!

You know why?

Because you don’t run a bank, you don’t manufacture Viagra, and you don’t produce oil.

Sure, the rhetoric will fly as it always has from both sides of the aisle. On the perfect stage manned by skeleton puppeteers with gold teeth and silver shoes, you’ll get an earful about how the other guy is screwing you…

But I’m going to let you in on a little secret: They’re all screwing you!

Tune Out the “Experts”

There are many issues I care about during election time.

Perhaps one of the most important for me is energy. Because quite frankly, the connection between energy and the economy and the environment is one that cannot be denied.

And like it or not, the big wheel in this machine is oil.

On the day following the election, oil prices plummeted along with the rest of the broader market…

In response to those falling oil prices, some clueless pundit on one of those cable minstrel shows was ranting and raving about how the market “knew” Obama would be successful in bringing down oil prices in an effort to help the middle class.

Are you freaking kidding me?!

This is what I’m talking about: completely clueless partisan slaves that don’t know the first thing about anything outside of manipulating data and doctoring spin-talking out of their asses. And these guys have no business being highlighted as “experts” on television, so really I blame the TV producers.

Regardless, this is just one example of the kind of complete BS we’re going to hear in the coming weeks and months.

So let me clear up some misconceptions for you today so you can invest accordingly, make some money, and tune out the so-called “experts.”

This is Non-Negotiable

My environmentalist friends love Obama. They think he’s the bee’s knees. And they think he’s going to fight those evil Big Oil bastards while putting solar panels on everybody’s roofs.

They are my friends. But they are, for lack of a better word, stupid.

If you think Obama’s not in bed with Big Oil just like the rest of them, you’re kidding yourself.

Sure, the president is going to try again to get those Big Oil tax breaks removed, and he’ll move forward on some regulations that’ll make it more difficult to drill on certain lands…

But don’t think for a second this isn’t all being balanced out somehow.

While Obama will be happy to massage the hearts and minds of tree huggers, he knows where his bread is buttered — and more importantly, he knows that even if he wanted to get us all into electric cars tomorrow, it just isn’t going to happen.

Love him or hate him, Obama is a smart man. He knows that kicking OPEC to the curb and getting more domestic oil and gas out of the ground is non-negotiable.

It’s happening — and whether in private or on stage, the president is going to facilitate it.

Buy Oil!

There are three things you can absolutely count on happening during Obama’s second term…

First, the Keystone XL Pipeline will be approved and move forward. The only holdups will come from local and state governments, not from Washington.

Did you really think Obama would risk losing a big chunk of his base by supporting the pipeline before the election? Not a chance.

But now that the election is over, there’s little disincentive for Obama to deny it. In fact, he’s going to use it as a way to work some favors in Washington — again, Obama is not a stupid man.

Second, there will not be any major federal regulations passed or enforced on fracking operations.

The payoff is just too juicy and the economic benefits too massive for Obama to risk his legacy on slowing down this train. Again, I suspect any holdups on fracking operations will come from the state and local level.

Third, if you can buy oil today below $90, in four years you’ll be sitting on a gain of no less than 40%.

Because the fact is no sitting president — regardless of party affiliation — can control the global peak of oil production. Unless one of these guys has figured out a way to change the laws of physics, it’s just not going to happen.

So ignore the partisan buffoonery, buy oil on dips, and sit tight. You will be rewarded.

To a new way of life and a new generation of wealth…

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Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

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