The REAL Economic Stimulus

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The REAL Economic Stimulus By Brianna Panzica | Saturday, August 25th, 2012 The economy is recovering, they say. Really, it is. Ignore the fact that applications for first-time unemployment benefits rose by 4,000 last week, bringing the four-week average increase to 3,750. And don't worry about the fact the unemployment rate — which started the year at 8.3% and dipped slightly — has swooped right back up to remain adamantly at 8.3%. Oh yeah, and the median household income has fallen 4.8% in the last three years. That's a bigger drop than during the actual recession... putting it 7.2% below December 2007 levels and 8.1% below January 2000 levels. Put all that out of your mind, too. Advertisement Have You Heard of "Black Solar"? A tiny $1.00 tech firm in Upstate New York just did the impossible... They unlocked the secret to harnessing solar energy by doubling the power output and cutting the cost in half. This technology is so efficient and affordable, electric companies are already shaking in their boots. Before the first big ticket contract comes, doubling the share price, click here to see why it's all the rage.  Up Go the Prices The price of oil is hovering dangerously close to $100 per barrel and some states are paying $4 a gallon for gasoline. The national average for gasoline prices is currently $3.74, $0.16 higher than this time last year. Some of this has to do with Chevron's refinery fire in San Francisco. Yes, California is one of those states paying $4 at the pump... but the average for the East Coast is $3.71. That's not a whole lot lower than the national average, and California sure doesn't account for much of the $0.16 increase over last year. The price of crude will continue to climb if the Fed decides to start printing more money, as many suspect it will. It hasn't even been following its natural trend this year... Take a look at this EIA chart for the trend in oil prices in 2012 compared with the last five years: The EIA says we should expect to see every dollar shift in oil prices reflected in a 2.4 cent-per-gallon increase in gasoline prices. We have the Fed to thank for that. They say the economy's healing. But it's also an election year, and changes to come will throw even more hills and valleys into the roller coaster of recovery. Regardless of the outcome, we'll need to hold on tight. And there's something else we can hold on to. It's the only thing that's been able to stabilize oil prices that would have otherwise risen out of control — and it's a major job creator, offering bigger paychecks to those involved... I'm talking about the domestic oil boom. Advertisement Wal-Mart Will Help You Double Your Social Security Income A little-known plan is paying people just like you $1,638, $5,969, even $23,220 each and every month. Anyone is eligible — whether you're currently retired or it's years away... Learn just how easy it is to start collecting your own checks right now.  Economic Shangri-La North Dakota, home of the Bakken Shale, has the lowest unemployment rate in the nation (3%), with even lower rates in areas closer to shale production. Bakken crude oil began trading at a discount to both WTI and Brent crude at the end of last year. This trend is likely to continue, as the chart shows: Last September, North Dakota oil production was at 460,000 barrels per day (bbl/d) — 4.5 times higher than it was in 2005. By June of this year, this figure had already grown to almost 6.5 times higher to 660,000 bbl/d. The state's overall oil production increased 3% in June from a month before and 71% from a year before; Bakken production increased 85% from a year before. The Bakken well count increased 4% in June. Rig counts were down, but drilling permit activity was up. Drilling is only going to increase... Advertisement Small Device Increases Oil Production 1,000% Believe it or not, most oil companies are able to extract no more than 20%-30% of the oil in their reserves. The rest is just too difficult to get to. But not anymore... Thanks to one small technology, companies can now reach this oil. In fact, some of them are already increasing production as much as 1,000%! Find out how right here.  Oil companies in the Bakken are paying salaries between $70,000 and $100,000. Compare that to the mean household income in the U.S. of $50,964 this past June. Williston, ND — the core of Bakken drilling — has an unemployment rate of around 1%. North Dakota's economy is all but sluggish. In a nation where any economic improvements are constantly battling setbacks, this Midwest state seems like paradise. And the Bakken isn't the only area with potential like this; areas like the Eagle Ford and Marcellus Shales just haven't caught up to its pace yet. But in order to keep up this pace — a pace that has the potential to lead the U.S. to energy dependence — improvements in drilling must be made. After all, these wells can only extract between 10% and 20% of the actual oil content. That's right. North Dakota's 660,000 bbl/d production rate is only a percentage of the crude that's actually underneath the ground. Fortunately, there's a company that has developed a technology with the potential to increase well production tenfold. We're talking about the kind of technology that will continue to drive the economy — even if nothing else seems stable. It's this kind of technology you'll want to get in on early, before everyone else finds out what it could do for domestic production... and the domestic economy. Good Investing, Brianna Panzica @brianna_panzica on Twitter Energy & Capital's modern energy guru, Brianna digs deep into the industry with accurate and insightful updates into the biggest energy companies and events. She stays up to date with the latest market moves and industry finds, bringing readers a unique view of current energy trends. For more on Brianna, see her editor's page.   Made in Your Living Room: The Manufacturing Revolution Imagine you could make anything you want right in your own home... The technology to do so is here. Success Now a Disorder?: Today's Boogeyman is Competition For many of us out there, the next few weeks are what is known as "Back to School" time. In honor of this annual event, we are going to dip into the Wealth Daily archives to bring you this classic piece from our founder and leader, Brian Hicks. Domestic Oil Investment Opportunities: Saudi Lies Put U.S. Economy at Risk How long will foreign oil continue to flow? Welfare Nation: A Third of the Country's on Federal Welfare And it's not the right or left that's to blame... It's the pacified population that's traded true individualism and liberty (you know, the American Dream) for dependence on the State. Misconceptions Surrounding Peak Oil: Peak Oil Myths... Busted! Keith Kohl explains why most Peak Oil myths are a far cry from reality. The Next Y2K: ObamaCare is a Goldmine for IT There is a new nightmare that wakes CIOs in the middle of the night. And like Y2K, billions of dollars are again being spent to hit a deadline. It's called the Affordable Care Act, better known as ObamaCare. Natural Gas Stocks: The Hidden Value of Our Shale Gas Boom Editor Keith Kohl explains why the Marcellus play will soon become one of the top onshore gas fields in the United States. Buy Gold: The Bigger They Are, the Harder They Fail In 1998, the top ten banks in this country controlled 55 percent of all banking assets. Today they control 77 percent of all banking assets. These banks are leveraged to the hilt with off-balance sheet derivatives that have yet to come home to roost... 3D Printing Will Change the World: Robots, Houses, Organs, Houses, and More Just as you open a document and print it, 3D printing allows you to open up a design or blueprint and "print" it. It's real... and it's going to affect nearly every manufactured product and company involved. I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles Faith in the Bakken You Should Be Bullish in the Bakken Montana's Secret Oil Comeback Recently... How Ford Just Cornered the Hybrid Vehicle Market Robots, Houses, Organs, Houses, and More The Hidden Value of Our Shale Gas Boom Saudi Lies Put U.S. Economy at Risk Energy and Capital's Weekend Edition

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