He made two predictions:
- We're about to see the biggest oil and gas boom in the history of this great nation, which will cause the economy to take off like a rocket.
- President Obama will use the boom to get himself a third term of office (or maybe he'll run Michelle instead).
Everybody had a good laugh about the third term (and for good reason), but what about the oil boom? Can he be wrong about politics but right about the economy?
Fracking and horizontal drilling are environmental nightmares, but are there really 100 billion barrels of oil coming out of American shale fields over the next few years? Are there really 140 LNG supertankers under construction? Is natural gas really dirt cheap in the US because we can't export it to satisfy world demand? Are we about to overcome that?
Because if the oil is there and it's economically feasible to get it out and sell it, I am here to tell you that environmentalists yappin' about damage to the ecosystem isn't going to slow down the oil boom for a Noo York second. Demand for oil and gas is unlimited, as India and China and other countries industrialize; the environment be damned. People are who they are, and as much as I care about the environment, I think market forces will make it a lower priority.
Are we really about to see a huge economic boom in this great land of ours?
Wall Street Journal: U.S. Oil-Production Rise Is Fastest Ever,http://online.wsj.com/article/SB10001424127887323468604578249621718888086.html
U.S. oil production grew more in 2012 than in any year in the history of the domestic industry, which began in 1859, and is set to surge even more in 2013.
Daily crude output averaged 6.4 million barrels a day last year, up a record 779,000 barrels a day from 2011 and hitting a 15-year high, according to the American Petroleum Institute, a trade group.
It is the biggest annual jump in production since Edwin Drake drilled the first commercial oil well in Titusville, Pa., two years before the Civil War began.
The U.S. Energy Information Administration predicts 2013 will be an even bigger year, with average daily production expected to jump by 900,000 barrels a day.
Oil production IS soaring due to fracking and horizontal drilling. There IS a glut of natural gas in this country, with much lower prices here than abroad, because of transportation problems. When they solve the transportation problems, there's a monstrous fortune to be made selling natural gas to other countries.
And there ARE a trillion freakin' barrels of oil under the ground, right here in the good ol' U.S.A.
Institute for Energy Research
Depending on technology and economics, as much as 1 trillion barrels of oil equivalent could be recoverable from oil shale resources yielding greater than 25 gallons per ton. For reference, 1 trillion barrels is nearly 4 times the amount of proven oil reserves in Saudi Arabia. The energy potential from our vast resources of oil shale could substantially shift the balance of America’s oil supply away from the Persian Gulf.
Stansberry's facts -- the things he says about what is happening today as I write this -- appear to be solid. His predictions about President Obama are cowpies. His predictions for the future of the economy may not be. I think this bears watching.
Carry on. Drill, baby, drill. Save the tatas.
* He predicted a company's stock price would soar, and it did soar for the reasons he stated (but a month later than he predicted). However, he made up the source of those reasons.