Download now: Oil Price Outlook 2024

Of Israel, Iran, and $150 Oil

Written By Nick Hodge

Posted December 31, 2011

Next year is going to be very interesting.

The presidential primaries and general election will be more melodramatic than an episode of Jersey Shore.

MTV producers in their wildest dreams couldn’t come up with some of the stuff we’ve seen already: Ni*gerhead, vaccine-induced retardation, Herman Cain.

Wait ’til it’s down to just two.

But 2012 will be interesting for more than the free entertainment of the election…

After all, either winner will be controlled by special interests, as has been the tradition for decades.

It’ll be fascinating because oil’s already at $100. Brent is at $108.

The Wall Street Journal reported last week that both India and China are increasing their reserves, and that will put upward pressure on prices.

India said it’s more than tripling the size of its reserve from 39 million to 132 million barrels.

China’s going to 500 million barrels from 103 million.

That’ll add a nice 490 million barrels of global demand over the next few years…

Oh, and Iran’s threatening to block the daily flow of 15 million barrels through the Strait of Hormuz. The Telegraph notes the implications:

If the ayatollahs’ carried out their threat, Iran could, at a stroke, choke the main artery for the West’s energy supplies.

The Iranians have been planning for such an eventuality for the past twenty years. Unlike the late 1980s, the last time Iran seriously disrupted shipping passing through the Gulf,  Iran now has the equipment, in terms of anti-ship missiles, to enforce the threat.

The U.S. Navy, which has two aircraft carrier groups permanently stationed in the area, would, of course, be forced to intervene, thereby leading to open hostilities between Washington and Tehran.

But if you think that is an alarming prospect, just imagine the mayhem that would erupt if Israel decided that it had had enough of Iran’s prevarication over its nuclear program and decided to launch unilateral air strikes to knock out Iran’s nuclear facilities.

Happy New Year!

Hello $150

High oil isn’t the enemy. It’s a profit catalyst.

When geopolitics send the price soaring, production costs stay the same for those with access to oil.

And of course, the Bakken comes to mind…

It’s awash in oil at a time when global supplies are in question.

It won’t be a global panacea, but it will be a hell of an investment as oil ticks higher.

Call it like you see it,

Nick Hodge Signature

Nick Hodge

follow basic@nickchodge on Twitter

Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street’s Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor’s page.

*Follow Outsider Club on Facebook and Twitter.

Recession-Proof Secret: Why There’ll Be No Unemployment in the New Year in North Dakota
There’s a small town in the heart of the United States where there are more jobs than people. And what’s driving this boom is bigger than just a small town, a zip code, or a single state… It’s an industrial expansion the likes of which we haven’t seen since the early 20th century.

More Precious than Gold: Revolutionary Profits Ahead
Locked away since the Manhattan Project, one of the earth’s most powerful materials is going to revolutionize everything from energy to circuit boards.

Dangerous Rare Earth Supply Risk: Urgent: U.S. Energy Department Issues Stark Warning
Analyst Ian Cooper takes a look at the latest warning out of the U.S. Department of Energy and offers a way to profit handsomely.

2012 Energy Stock Predictions: Domestic Oil to Reign in 2012
Editor Jeff Siegel offers his energy predictions for 2012.

The One Answer Smith Really Wanted: Will Next Year Be Better?
Washington and Wall Street can’t stop the rest of us from doing biz!

2011 Predictions Recap: What I Got Right, and a Few I Missed
The fall of Chinese housing has been a slow motion train wreck for about six months now. Newly-built Chinese ghost cities are a common topic on the web. Real estate prices are down in most major cities.

What’s Really Behind the Solar Sell-off: And Why Did Warren Buffett Just Buy Them
Brian Hicks talks about what is really behind the solar stock sell-off and why Warren Buffett is buying them.

Another Date Which Will Live in Infamy?: This Could Be The Big One for the Middle East
There are people hard at work to make sure that we never need to depend on things like the Strait of Hormuz, Iran, or any Middle Eastern oil-peddling nation ever again… right here in the Midwest.

Tesla Electric Car Investing: Is It Time to Buy an Electric Car?
Editor Jeff Siegel discusses whether or not it makes economic sense to buy an electric car.

Taken for a Ride: Year-end Recap and 2012 Anticipation
I think next year will be a year of drastic transformation, of political awakening, of balance sheet resetting, of a return to real value over hyped illusions.

Bullish on America in 2012: Don’t Worry, Be Happy
Brian Hicks reviews the year in commodities and comments on the bullish New Year ahead for investors.

Personal Responsibility: Taking Control and Moving Ahead
Instead of remaining oblivious to global markets and continuing to wallow in a sea of self-loathing while continuing to blame everyone and everything but yourself… Why don’t you read up, get invested, exploit tax loopholes, pay down debt, save, and take control of your financial destiny?

Angel Pub Investor Club Discord - Chat Now

Hydrogen Fuel Cells: The Downfall of Tesla?

Lithium has been the front-runner in the battery technology market for years, but that is all coming to an end. Elon Musk is against them, but Jeff Bezos is investing heavily in them. Hydrogen Fuel Cells will turn the battery market upside down and we've discovered a tiny company that is going to make it happen...

Sign up to receive your free report. After signing up, you'll begin receiving the Energy and Capital e-letter daily.