If you thought life was good before the crisis, wait until
you see
what’s set to happen next...
By: Byron King
Dear reader,
Some people have written America off. They say it is past its
prime... buried in debt... and will be plagued with unemployment and
hardship for years to come...
They’re wrong -- and I’m going to show you why.
Now, I have to admit, when I first saw what you are about to see I
simply could not believe it…
Even with a degree from Harvard… input from trusted friends and
colleagues deep within the financial industry... and more than 37 years
of experience working with world-class companies, policy makers, and
investments, I still thought the news reports I was receiving– and the
numbers they contained – sounded far to good to be true...
No matter how many times I review the data though… or how many ways
I rearrange the pieces of the puzzle, the outcome is the same:
America’s fortune is set to change in very
drastic, very amazing way – and it could happen as early as THIS MAY.
What’s more, the startling phenomenon you’re about to see has
the potential to improve the lives of every man, woman, and child in
America for decades to come.
In fact, this may sound a little crazy, but what if I told you the
American dream is not only alive -- after May 2012 it
could begin to burn brighter than ever before...
Paying your mortgage. Finding a new job. Getting a raise. Making
money with stocks. Retiring in comfort, and without worry. Treating your
family to the life they deserve. I believe it’s ALL about to get a
whole lot easier -- just like it was before the crisis struck. Perhaps
even better.
And that’s just the start...
The words ‘Made in America’ may actually mean something again...
3.2 million new manufacturing jobs. The deficit slashed without
huge tax increases or drastic cuts to Medicaid and Social Security.
Businesses -- big and small -- thriving. A flourishing economy. America
back on top as the world’s #1 engine of growth.
As you’re about to see, I expect all of this -- and more
-- to begin happening as early as this May.
Like I said, it sounds pretty far-fetched, doesn’t it...
To be honest, what I’m about to show you is so unexpected -- so
life changing, many people won’t believe it can happen. And they
certainly won’t believe it has already begun.
But I’ll show you proof that it has already begun.
You see, the fuse has been lit on a recurring phenomenon that is
capable of altering America’s fortune – and your personal wealth --
for decades to come…
The railroad age... the steel age... the electronics age... the
technology age -- this phenomenon triggered them all.
It has given birth to nation-changing companies like Union Pacific,
U.S. Steel, General Electric, Apple, and Amazon. It has turned penniless
immigrants and college dropouts like Andrew Carnegie and Bill Gates into
billionaires. And, it has generated untold trillions in wealth for
American workers -- and main street investors.
Now, this powerful phenomenon is taking shape again. And as I
explained earlier, it’s not some far off event. It’s already
starting to happen…
Three years ago the U.S. Census Bureau pegged Dimmit County as the
19th-poorest county in the nation.
Today it’s overflowing with jobs that are paying out more than $512
million in salaries.
What’s behind this amazing reversal? I’ll show you in a moment.
But first, it’s important to know that this isn’t limited to just
Dimmit County...
Desoto Parish in Louisiana is also on its way from being one of the
poorest parishes in its state, to one of the wealthiest...
As Jim May, executive director of Desoto’s Chamber of Commerce
explained, “It’s affected every business from restaurants and
grocery stores to dry cleaners and motels...
Tax revenue has increased. This affects everything from the quality
of our roads to the libraries and everything in between.”
Youngstown, Ohio is already seeing the change as well...
For what seemed like an eternity, Youngstown was the poster child for
the Rust Belt economy. Its once vibrant factories and mills sitting
silent and slowly crumbling to dust...
Today it’s buzzing with the sounds of heavy, new construction and a
click-clack of train traffic that hasn’t been heard in decades.
And this is just the start...
I believe this May it will ignite an entirely new era in
U.S. history -- one that will be looked back upon as a great rebirth
of America.
“I’ve never been more certain of anything in my life!”
Hello, my name is Byron King.
I’ve spent over three decades working around big resources, big
systems, big technology, big policy, and big money.
And yet, throughout all 37 years of my experience, I have never seen
a world-changing event like the one set to erupt this spring.
I’m talking about a shift in global energy trends -- a
resurgence of U.S. energy -- so immense, it will change our
nation in a way few people thought possible...
Foreclosures and food stamps will gradually fade... new jobs will be
created... business will thrive... wages will likely skyrocket...
families will prosper - the entire American economy could be
transformed.
Make no mistake, I’m convinced this profound rebirth of
American energy will happen.
I have never been more certain about anything in my life.
The weak economy can’t stop it. As you’re about to see, it’ll
be revitalized by it...
Government regulation and bickering politicians can’t stop it. In
fact, they secretly want it -- it’s the answer to their
prayers...
Not even OPEC, die-hard environmentalists, or a European
banking catastrophe can stop it. It would be like trying to stop
the sun from rising...
I’ll reveal how I know this rebirth is going to happen.
I’ll reveal which fuels are driving it forward.
I’ll show you why it can’t be stopped.
I’ll show you why it has the power to change your life and put
America back on its feet.
Then, you can decide for yourself if it all makes sense or if you
think I’m just some crackpot who isn’t playing with a full deck.
The driving secret behind America’s comeback
Why am I so sure we are on the verge a profound rebirth of U.S.
energy?
Well, it’s not because of the recent discovery of the Bakken oil
shale in North Dakota... the Marcellus gas shale in Pennsylvania and New
York... or the MUCH larger Utica gas shale laying 5,000 feet below the
Marcellus shale...
This is something far, far bigger than any single, new resource
discovery.
It’s a natural phenomenon so powerful it has repeatedly altered
history...
And yet so subtle it usually reaches a crescendo before most people
even realize the significance of what’s taking place.
This recurring event can most easily be described as convergence,
Discovery. Technology. Demand.
When these three specific ingredients combine they almost
always ignite an historic era of growth, wealth and prosperity.
A wellspring of recently discovered ‘unconventional’ energy has
lit the fuse on a NEW wave of convergence.
And you’re not only about to see why it has the ability to make the
words ‘Made in America’ mean something again...
FOUR Saudi Arabia's buried in our own back yard
Look, it’s no secret that several significant ‘new’ oil and
natural gas deposits have been discovered across the U.S. recently...
I’m sure you’ve heard about these shale finds on more than one
occasion over the past few years...
The Eagle Ford shale deposit... the Bakken shale... the Haynesville
and Fayetteville shales... the Marcellus and Utica shales.
The list seems to grow every few months...
Just this past summer the Niobrara shale started making headlines --
adding Colorado, Nebraska and Wyoming to the list of states rich in
deposits.
What few people realize though is these are not ‘new’
discoveries. Geologists have known about most of them for decades...
The REAL discovery that has reignited the phenomenon
of convergence is actually twofold...
First, geologists have only recently begun to realize just how
much raw resource each of these deposits actually holds.
They are called ‘unconventional’ or ‘tight oil’ and ‘tight
gas’ deposits for a reason.
Traditional oil and gas deposits were essentially large pockets of
oil or gas that were easy to spot and easy to harvest. You would
basically use magnetic or seismic surveys to locate a large anomaly
underground. Then sink a pipe down into the ground so the oil or gas
could gush out under its own pressure.
Yes, that’s an over simplified explanation but you get the idea --
geologists looked for underground pools of fluid.
With shale deposits there are no pools. The oil and gas are trapped
in tiny crevices between dense layers of shale and sedimentary rock --
kind of like a thin layer of mayonnaise between two pieces of bread.
Because the crevices are so thin, so numerous, and contained in such
immense formations of sediment and rock, the technology to accurately
measure it simply didn’t exist -- until now.
In 1974 geoscientists estimated the Bakken shale was capable of
generating just 10 billion barrels of oil. Barely enough to satisfy
current U.S. oil consumption for more than one year...
In 2008 the North Dakota Department of Resources reported the Bakken
contained 167 billion barrels of oil -- nearly 17 TIMES more
than previously believed.
At our current rate of consumption, that’s enough oil to last us
23 years -- from just ONE shale deposit.
As recently as 2002 it was estimated the Marcellus shale contained
about 2 trillion cubic feet of gas -- barely enough to last the U.S. for
one month.
Today the Energy Information Administration estimates it contains at
least 410 trillion cubic feet of recoverable natural gas -- 205
times more than previously believed.
That’s almost 17 years’ worth of natural gas -- the cleanest
burning fossil fuel on the planet -- from just ONE shale
deposit.
And in 2009 no one thought the shale beneath Dimmit County, Texas was
worth anything more than dirt...
Now -- a little more than 24 months later -- over 3 million
barrels of oil have already been pumped out of the Eagle Ford
shale.
Well permits have soared from 94 to 1,010 -- with as many as 30,000
expected before the play matures.
And 12,600 jobs have been created.
There’s just one small problem though...
The discovery of all this ‘new’ oil in the Eagle Ford shale may
be improving lives in Texas. But it hasn’t done much to improve the
lives of people in Michigan or New Hampshire.
Likewise, the discovery of 410 trillion cubic feet of natural gas in
the Marcellus shale may have lit western Pennsylvania’s economy on
fire...
...but it hasn’t enriched the lives of people in Arizona or
Florida.
And the discovery of the Haynesville and Utica deposits may be making
energy companies a fortune. But it hasn’t delivered much money for
main street investors...
In just a few more months though, I believe it will!
As I said earlier, no single shale play is a game changer. No single
discovery has the magnitude or ability to drastically alter the face of
our nation...
But their combined discovery DOES.
Independent research studies and industry insiders report that the
combined shale deposits can supply America with a century
worth of natural gas.
And the Institute for Energy Research now pegs the
total recoverable oil from U.S. shale deposits at as much as 1
trillion barrels -- nearly FOUR times the amount of proven
oil reserves in Saudi Arabia.
Does it mean we’ll reach $30 oil again?
No, in that sense we have reached peak oil.
You and I both know the days when you could simply shove a pipe in
the ground and watch oil gush out under it’s own pressure are gone.
Well, let’s face it -- most of America’s ‘easy’ oil has
already been found.
And if oil companies still had access to massive deposits of easy oil
outside of the U.S., they wouldn’t have had any reason to
search for ‘unconventional’ oil or gas inside the U.S....
Fortunately, the scarcity of easy oil -- and the threat of peak oil
-- DID create the need to take a closer look at unconventional resource
deposits.
And look at what they’ve found...
Massive, secure sources of oil and gas right at our fingertips. Enough
to power America for up to a century at current consumption rates.
In other words, this could mean no more price spikes every time a
hurricane strikes, China gets thirsty for crude, or OPEC tries to
tighten the spigot...
And no more reliance on Middle East kings or unstable nations for the
bulk of our energy needs.
Prices are likely to remain much more balanced and affordable for
years to come.
Just as importantly though, it also means a much stronger, more
vibrant economy than we’ve seen in a very long time...
“We actually have more jobs than we have people”
Look at Dimmit County -- you know, the one that went from being 19th
poorest in the nation to having 12,600 jobs created...
Since it started pumping oil 24 months ago its unemployment rate has
fallen in HALF.
And sales tax receipts shot up 70 percent in the past year alone
-- allowing the county to hire more police officers and buy sanitation
and road repair equipment.
Stories like these are popping up in other shale areas as well...
Thanks to the Haynesville shale, residents in Louisiana’s Desoto
Parish have made a fortune off of leasing payments alone...
And residents are seeing their lives improve in all sorts of ways: A
new town hall... resurfaced roads... a flood of new customers filling
the cash registers of local stores and restaurants... long-needed pay
increases for community employees...
Are you beginning to understand why this has me so excited?
Are you starting to see just how powerful -- and profitable -- this
new wave of convergence will be...
In North Dakota ‘Help Wanted’ doesn’t even begin to describe
the explosion of economic activity taking place...
The Bakken oil shale is transforming sleepy towns across the
grasslands into thriving centers of growth.
The state already boasts the nation’s lowest unemployment rate --
3.5 percent...
And companies are scrambling to fill all manner of jobs in order
to keep pace with the crude: Truck drivers, construction workers,
policemen, waitresses, you name it...
As Dennis Johnson, Mayor of Dickinson explained, “We have rising
property values. We have low unemployment. We actually have more
jobs than we have people.”
In fact, because of the drilling boom, the recession is pretty much
non-existent in North Dakota.
The state even has a budget surplus...
So much so, they’ve been able to boost state spending
while also enacting a $500 million tax cut for its residents.
And those are just examples from THREE shale deposits!
There are currently more than 27 oil and gas shale deposits being
aggressively developed across the U.S. ...
...and they cover nearly ONE THIRD of the nation.
Some span as many as six states!
Just think of what will happen as the activity at all 27 shale zones
floods into the larger economy...
Think of the impact it will have on your job... your income... and
your life style...
With explosion of jobs, rising wages and growing businesses, state
and federal revenues will likely skyrocket...
Rising government revenues could curtail the need to increase taxes
or drastically reduce Social Security and Medicare programs...
Lower fuel and raw material prices mean manufacturing and
transportation costs will drop...
In turn, food and goods will cost less. Consumer spending will rise.
And our economy will grow stronger by the moment.
And the more the cycle spreads the more it will feed on itself.
All told, Boston Consulting Group -- one of the most prestigious
consulting firms in the world -- expects 800,000 manufacturing jobs to
return home to the U.S. by 2015...
...with a multiplier effect creating 3.2 million jobs in
total.
THAT is the power of convergence...
THAT is why I believe the rebirth of U.S. energy will make the words
“Made in America” mean something again...
And that is why I believe we’re about to experience a new era of
prosperity.
Your job will be more secure. Your commute will cost less. You’ll
be more likely to get a raise. Your taxes will be far less likely to go
up. Your grocery bills will go down. And your utility bills will shrink.
Of course, none of this would be possible without the next key
ingredient for convergence: Technology.
“One of the greatest wealth creators in American history”
If you’ve been reading the headlines or watching the news you’ve
probably heard two important phrases: Long-reach horizontal drilling.
And hydraulic fracturing -- or fracking.
Long-reach horizontal drilling allows drillers to bend a well 90
degrees within just a few feet -- sending wellbores up to a mile
sideways after reaching down more than a mile below the ground surface.
And hydraulic fracturing is the process of injecting fluid into a
wellbore under high pressure to create or slightly expand small
fractures in the stone.
Since the fluid is 98 percent water and sand, the water carries the
sand into the cracks. The sand then holds the cracks open so the oil or
gas trapped between the rocks can flow out.
In other words, horizontal drilling allows drillers to get down to
the narrow shale layer, then turn horizontally so they can follow it...
And hydraulic fracturing let’s them pull out the oil and gas
trapped in its cracks.
Together they’re perfect for tapping into the massive volumes of
fuel America just recently discovered it has...
And together they’re igniting an energy revolution that’s
changing U.S. oil and gas output in way few people thought possible.
America’s dependency on foreign oil has already dropped below
50 percent for the first time in 15 years -- and yet shale oil
production has barely gotten underway...
What’s more, the Energy Information Administration reported that
U.S. crude oil output has actually reversed course and made its biggest RISE
since 1985.
And industry insiders now expect North American oil production to
reach an all-time high in 2016. Yes -- we’re talking
even greater oil output than during the historic oil boom of the 1940s,
50s and 60s.
The same rapid-fire growth is occurring with shale gas as well...
Shale gas production has already pulled the U.S. out of a domestic
natural gas shortage.
It has lowered the price of U.S. natural gas by 54 percent in less
than a year.
And it has cut U.S. imports of nat gas to just 13 percent of supply.
Yet, we’ve only tapped into a fraction of
its full potential...
Just wait until all of this new oil and gas production kicks into
high gear!
The Financial Times declared America’s newfound oil rush
“...is a development that holds profound
implications for the economy of the US and its status as superpower.”
Investment banker Ralph Eads was quoted in the Wall Street
Journal describing it as “the economic equivalent to any of the
big technology innovations.”
One of the UK’s preeminent newspapers -- The Telegraph --
announced, “The American phoenix is rising again. Within five years
or so the US will be well on its way to self-sufficiency in fuel and
energy. Manufacturing will have closed the labour gap with China in a
clutch of key industries. The current account might even be in a
surplus.”
And Goldman Sachs even expects America to jump ahead of Russia and
Saudi Arabia and reclaim its title of World’s No. 1 Energy Producer by
2017!
Why are they all so confident this new U.S. energy boom will put
America back on top and change the world for years to come?
And why am I so certain that -- starting as early as this May -- it
could change your life in ways you never thought possible?
Because of the third and final ingredient in convergence: Demand.
Not even bickering politicians can stop it!
In fact, they’d kill for a chance to take credit for it...
Demand has not only converged with discovery and technology to ignite
a new era of American prosperity...
It is also the ingredient that makes this wave of change virtually
unstoppable.
Two world wars. The Great Depression. 32 bear markets. 20 recessions.
The tech bust. The real estate bust...
None of them has been able to put so much as a dent in the
world’s insatiable, ever-expanding appetite for fuel.
And that certainly isn’t going to change now!
The weak U.S. economy won’t stop it. In fact, as you’ve just
seen, it just might be saved by it.
Regardless of how tight money might get, people still need to heat
their homes and turn on their lights.
They still need to run their refrigerators... their air conditions...
their TVs... and their PCs.
And they still need to drive to work... to school... and to the
grocery store.
When times get tough, energy is one of the few industries that keeps
on humming -- and even has the ability to grow.
Ah, but what about pandering politicians and government regulation?
Sure, they may slow the pace a bit now and then with an occasional
speed bump -- such as rerouting a major pipeline or delaying its
approval...
But stop it outright? Not a chance.
Why?
Because, whether they openly admit it or not, they both want and
need it.
For more than three decades now -- ever since the Arab oil embargo --
American citizens have been pleading with their leaders to find a way to
end our reliance on Middle Eastern oil.
September 11th... the war in Iraq... and the Arab Spring revolutions
have made it more than clear that time is running out -- and the cries
for energy independence are getting even louder...
Do you think any politician in his right mind would risk his career
by standing in the way of our finally achieving it?
For that matter, I can’t think of a single politician who
wouldn’t jump at the chance to claim responsibility for freeing us
from the shackles of foreign oil -- and giving us millions of
new jobs in the process, can you?
As for OPEC, fanatic environmentalists, and European financial
catastrophe -- they haven’t got a snowball’s chance in Hades of
stopping it either...
For starters, 77 percent of the world’s known
shale oil resources are located within the United States.
So, there is no way OPEC can lay claim to, or control it.
Instead, they’ll probably be forced to lower their prices just
to compete with it.
Likewise, if two world wars, dozens of recessions, and a Great
Depression couldn’t quell the world’s growing hunger for fuel, then
I highly doubt a few crazed environmentalists can stop it either...
At most, their efforts will merely bring greater awareness,
improvement, and safety to process -- which is good for energy companies
and consumers alike.
And if financial crisis roils Europe?
Well, it’ll be no different than in the U.S....
Regardless of how tight money might get, Europeans will still need
cars, buses, and trains to get to work.
They’ll still need power for their refrigerators, TVs, and
computers.
And they’ll still need to cool their homes in the hot, European
summers and heat them in the freezing, European winters.
And where do you think they’d rather get the fuel to do it...
From Russia -- who has already shut off the spigot three times in the
past six years?
Or from America -- a longtime friend and ally...
Besides, even if crisis does slow things a bit in Europe, the thirst
for fuel in emerging nations will more than fill the gap.
Whether it’s natural gas shortages in China... an ongoing energy
crisis in India... or long lines at gas stations in Argentina -- they
can’t get their hands on fuel fast enough.
In other words, demand may slow briefly in one country or another
from time to time...
But, worldwide, over the long run it always has -- and always
will -- continue to climb at a rapidly increasing rate.
It all boils down to simple mathematics...
You and I both know that long as the world’s population continues
to expand, the amount of energy consumed will continue to expand right
along with it.
And now that same insatiable demand is converging with discovery
and technology to launch us into a new era of growth...
...just as it has in every other age of wealth and prosperity
throughout history.
Here’s the real kicker though...
As you’ve seen, the media is starting to catch wind of what’s
going on...
They’re already calling it “an historic shift”... the harbinger
of an “economic revolution”... and printing headlines like, ‘World
Power Swings Back to America’.
Energy companies and industry insiders obviously know what’s going
on -- and realize how big its impact is going to be...
Otherwise, they wouldn’t be pouring billions of dollars -- and
every possible ounce of effort they can muster -- into recovering all
these newfound resources.
And there’s no doubt the Wall Street elite have noticed what is
going on -- and are already positioning themselves to their
advantage...
If Goldman Sachs expects America to reclaim its title of No. 1 Oil
Producer by 2017, do you really think they’ll pass up the chance to
make money on it?
And if they’re putting money on it, it’s a pretty safe bet their
competitors are too.
However, one group of people hasn’t taken notice of
what’s starting to happen -- at least not yet: the American
public.
Have you heard anyone at Starbucks chattering away about the Utica
shale -- or the steel mill rebirth it has ignited across Ohio?
When you last dined out, did the waiter talk your ear off about the
Bakken shale or how it has lifted North Dakota out of recession?
And how many of your friends and neighbors are talking about the
wonderful, shocking news that America may once again be the world’s
top oil producer -- within the next five years?
Not many, right? But you can bet your bottom dollar they soon will
be...
When?
As early as this May.
That is when I believe mainstream America will find it self caught up
in a growing wave of oil headlines... the start of a profound economic
recovery... and an energy stock euphoria the likes of which we haven’t
seen in decades.
Why?
Three reasons:
One: Based on my industry experience and today’s technology,
I would say it typically takes about eight years to go from drilling the
first exploration wells to full-scale production.
And when did exploratory drilling at the first major shale plays --
namely Eagle Ford, Bakken and Marcellus -- get under way?
In 2004.
So, when should they be set to start entering into full-scale
production?
That’s right -- this year. They’ll be pumping out
massive volumes of crude as soon as the 2012 drilling season gets
under way.
And when does the 2012 drilling season get under way? You guessed
it -- the moment the winter weather breaks: May.
Two: Because the jump in last year’s numbers confirm
they’re right on the verge of throwing the floodgates wide open...
In 2011, North Dakota’s Department of Mineral Resources reported
that Bakken output had shot up 72 percent higher than the previous year.
At Eagle Ford, oil production for the first six months of 2011
matched the output for ALL of 2010.
The same held true for natural gas output at Eagle Ford: They
recovered almost as much natural gas in the first six months 2011 as
they had for all of the previous year.
And gas production at the Marcellus shale in southwest
Pennsylvania jumped 55 percent last year.
Three: Because the sudden, new surge in oil and
gas output... new jobs... new factories... and explosive economic
activity will no doubt dominate the headlines.
For more than four years all we’ve heard about are mortgage
nightmares... market crashes... rampant unemployment... countries on the
brink of collapse... deficits gone wild... and childish political
bickering.
People are tired of feeling hopeless and depressed. They’re
starving for some sort of good news -- a light at the end of the tunnel.
And now that it’s finally within sight, you can be darn sure the
media is going give it to them.
The Wall Street Journal, the Financial Times, and
the Telegraph won’t be the only ones cranking out headlines
like those you saw a moment ago.
By May 2012 everyone will be talking about it
As America’s oil production starts closing in on Russia’s and
Saudi Arabia’s...
As old businesses take on new life and new businesses start
spreading...
...they’ll be plastered across the front pages and all over the
evening news.
We will have reached the tipping point.
The snowball of growth will likely become an avalanche of
revitalization and change that sweeps across the nation.
Business will boom. Revenue will grow. Incomes will rise. Consumer
spending will climb. Stocks will take off. Millions of lives will
improve. And the U.S. will regain its footing as world superpower.
Now do you understand why I believe May 2012 will be looked back upon
as the start of a new age of American wealth and prosperity...
Even if you sit back and do nothing, your life will
most likely change for the better...
Your living expenses could be lower. Your paycheck could be more
secure. You’ll have more spending money. You’ll be under less
stress. And you’ll be able to enjoy yourself more.
Sincerely,
Byron King
Editor, Outstanding Investments
January 2012
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