Who Would You Believe?

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Who Would You Believe? By Brianna Panzica | Sunday, December 2nd, 2012 The oil market wants a solution to the impending fiscal cliff. Don't we all. The topic blew up once the election dust settled... The U.S. is facing massive tax hikes and spending cuts on January 1 if the presidential administration and Congress cannot come up with a solution. The days are numbered; no one will be excluded. The fiscal cliff was set in place to try to force a solution to the nation's crippling debt problem. But the Senate, the House, and the Obama administration have been at such a standstill that the threat remains very real. And we've seen this reflected in oil prices. Advertisement The Best Bakken Oil Stocks Under $10 At least 6 billion barrels of light, sweet crude oil sit in North Dakota's Bakken oil pool. But the best Bakken stocks to own are still less than $10 a share. You could make 153% or more — but you'll need to act fast... Your Special Report, "Bakken Billions: 3 Bakken Stocks Under $10 for Triple Digit Gains," is waiting. Click here to get your FREE copy of this groundbreaking investment report.  Oil began the year trading at spot prices near $100 per barrel. This fluctuated throughout the summer, but by early fall the price was back up again. Prices have been slipping back down since October, holding under $90 a barrel as uncertainty about the fiscal cliff weighs on the economy. On Thursday futures for January delivery were up for the first time in days after the Commerce Department announced GDP growth was 2.7% in the third quarter, beating estimates of 2% and doubling the second quarter results of 1.3%. Crude prices rose closer to $90 on the news — an indication that positive moves in the domestic economy will be positive for oil as well. Later that day, House Speaker John Boehner gave a less-than-optimistic press conference about the state of the fiscal cliff talks in Washington, sending oil back down. Boehner stated he was “disappointed in” how far the talks have gotten and that there has been “no substantive progress.” Not great news for an economy that's still just getting back on its feet. We are following this news with bated breath. Oil could drop even further if we do go over the fiscal cliff. The Congressional Budget Office has even suggested we run the risk of falling back into recession if it happens... Advertisement Natural Gas Riches This 1,000-mile-wide tract of U.S. land has created more billionaires than Apple and Google combined. Learn why this piece of little-known real estate is so vital to American energy independence — and how it can catapult two stocks I've found by over 532%. Click here. I realize Congress is the body trying to fix this budget crisis — but can we really trust this same group to tell the truth about what's going on? The government doesn't exactly have a track record for giving it to you straight. Billionaire investor Warren Buffett has had a long run in successful trading. He's been dubbed the Oracle of Omaha for a reason. And the Oracle doesn't think recession is an option... Buffett expressed confidence in the country's ability to hold out in an interview with CNN earlier this month: We had Hurricane Sandy which disrupted the economy for a period, we had Katrina many years ago, there are things that will disrupt the economy. I mean 9/11 was an extraordinary case but we have a very resilient economy — we've had one for hundreds of years. And the fact that they can't get along for the month of January is not going to torpedo the economy. Still, the sort of uncertainty the economy is experiencing leading up to the cliff is going to leave U.S. crude unsteady for the time being. A reallocation of the WTI and Brent positions on the Standard & Poor's GSCI Commodity Index this week suggested Brent could surpass WTI to become the world's most-traded commodity. The average daily trading contracts for Brent have jumped this year while those for WTI fell. WTI's landlocked location in Cushing, Oklahoma, and their lack of sufficient infrastructure is part of the reason trading has decreased. And prices have been dropping due largely to increased U.S. production. But next year pipeline expansion will create movement and begin to close that spread (unless, of course, the fiscal cliff thwarts the price increase). So, are we going to believe the government, which clearly has its own agenda — or a man who has made billions on analyzing the facts? As Buffet pointed out, history's on our side... There's one thing you can be sure of: North Dakota maintains the lowest unemployment rate in the nation, with some towns boasting the lowest rates in history. Bakken production won't slow down just because of a bump in the U.S. economy, if we even hit that bump at all. Keep in mind it's the shale deposit where Buffett placed his bets... You don't need billions to follow in his footsteps. Good investing,   Brianna Panzica for Energy and Capital Profits Without Stocks: Don't Miss This Play in a Sector You Might be Overlooking... This little loophole can help you rake in the profits while avoiding the recent wild swings of the stock market. It's Much Worse Than You Thought: What You Need to Know about Shadow Banking Analyst Briton Ryle explains why the regular banking system is not much different from the shadow banking system, even though most investors mistakenly believe new regulations (Dodd-Frank) have cleaned up the banking sector. Backing an Energy Transition: OPEC is Holding the Knife Why today's declining oil imports may be due to one very large oil field in North Dakota...  Investing in Housing: Recovery Gains Traction It might be too late to get on the housing stock run, but it's the perfect time to get in on housing itself. Myanmar Oil Investing: Myanmar's Oil Bounty is a Lie There's barely enough oil in Myanmar to make it worth talking about. The Japanese Debt Bomb: Money for Nothing Christian DeHaemer tells readers what the next Japanese election means for gold. Mexican Oil Crisis: Crisis of Consumption Editor Keith Kohl explains why Mexico's crisis of consumption will lead a certain group of investors to one set of profits in the oil sector. How to Play Obama's Carbon Tax: What Investors Should Know about Obama's Carbon Tax With a second term secured, widespread speculation about Obama approving a U.S. carbon tax is taking off. Learn which unexpected major company is pushing for it, how it will redefine America, and how to profit from it. 3D Printing Investments: Industry to Double in Next Four Years Instead of using factories, production lines, multiple pieces of million-dollar equipment, and then shipping products around the globe... these companies make printers that manufacture almost any product imaginable. Guns, Gold, and Barns: Plus the Chart of the Day Christian DeHaemer tells you how to deal with the looming economic collapse. The Best State in America: Drill, Baby, Drill We've been all over this story for years. But now it's getting really mainstream... I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles The Energy Industry Has Election Fever Beating Obama's Green Gamble The End for OPEC Crude The U.S. Oil Addiction Recently... 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