The Floodgates Will Open

Miracle From Heaven? A tiny company located near the campus of MIT has made the impossible possible. One Nobel Prize-winning scientist is calling their breakthrough a "gift from heaven." It could even make you incredibly rich in the year ahead. In fact, a small group of Americans has already discovered the power of this medicine - and the results have been staggering. What is this medical breakthrough? And how can you make a small fortune by investing in it early? Find out by clicking here. Monday, July 14, 2014 | Issue #2332 Lower Gas Prices and a Million New Jobs David Fessler, Energy and Infrastructure Strategist, The Oxford Club Thanks to hydraulic fracking and horizontal drilling, the United States has at least a century's worth of natural gas and is producing as much crude oil as it did in the 1970s. And we have enough coal to last more than 200 years. So I'm often asked: Why aren't U.S. companies exporting more of our surplus? With coal and natural gas, the answer is simple. We don't yet have the facilities in place to do it. Exporting coal requires ports capable of loading oceangoing coal freighters. And right now, we just don't have many facilities available. Plans are underway for as many as seven new ports in California, Oregon and Washington, but would-be builders are making little headway against local opposition. It will be many years before any construction begins. Exporting natural gas, meanwhile, requires special facilities to convert it into liquid. Seven permits have been approved to build those facilities. But the first of these, in Louisiana, won't be complete until late next year, and no liquefied natural gas will leave the lower 48 until then. The Man Responsible for the eBay Attack? You may not realize this, but some in Washington are pointing at President Obama for allowing this to happen. Just one month ago, we actually predicted something like this would take place. Here's another look at our prediction and why something even worse may be coming very soon. Exporting Crude Oil The export of crude oil, though, is a very different story. U.S. oil production has grown faster the last five years than anywhere else on the planet. That growth has occurred even though our own domestic oil consumption is in decline due to more fuel-efficient vehicles and a sluggish economy. Exporting it makes perfect sense. Transmission pipelines, storage and port facilities already exist. And the type of crude being produced is begging for export because most U.S. refiners aren't set up to handle it. The crude that's flowing from tight shale formations like the Bakken, the Eagle Ford and the Permian is of the light, sweet variety. As U.S. production slowed in the 1970s, refiners here spent billions in plant modifications to handle heavy crudes from Saudi Arabia and other producers. So exporting it is a no-brainer. There's just one problem: Congress banned the export of crude oil during the 1970s Arab oil embargo. Finding a Loophole Pioneer Natural Resources (NYSE: PXD) and Enterprise Products Partners L.P. (NYSE: EPD) recently asked the Commerce Department if a type of crude oil called condensate would be OK to export. Two weeks ago, the Commerce Department gave the green light to both companies. The government emphasized that its action wasn't a full lift of the 40-year-old export ban, but finally there appears to be a way around it. Ed Morse of Citigroup commented, "The floodgates of exports will be opened now." Morse thinks as many as 200,000 to 300,000 barrels per day of condensate could head offshore by the end of this year. By the end of 2015, that number could double. Kinder Morgan Energy Partners L.P. (NYSE: KMP) certainly thinks so. It's building a massive refinery called a "stabilizer" that strips out the most volatile hydrocarbons from light, sweet crude. This makes it much safer to transport in pipelines and to be freely exported. There are members of Congress who want to lift the crude export ban altogether. Some fear lifting the ban would cause U.S. pump prices to jump higher. But, in a groundbreaking report, energy consultant IHS argues just the opposite. It said that lifting the U.S. crude export ban would further boost production here, create as many as a million new jobs and lower U.S. pump prices by $0.08 per gallon. Increasing exports improves the U.S. balance of trade. The IHS study further concluded that all that additional production would slash America's crude oil imports by $67 billion annually. "The 1970s-era policy restricting crude oil exports - a vestige from a price controls system that ended in 1981 - is a remnant from another time," said Daniel Yergin, IHS vice-chairman. There's no question in my mind that the U.S. crude oil export ban should and will be lifted. That will be a great day for energy investors. What do you think? I'd like to hear your thoughts on lifting the U.S. ban on crude oil exports. You can leave your comments below. Good investing, Dave Editor's Note: America's oil renaissance is due to one breakthrough technology developed by a 94-year-old inventor. His brainchild is creating a generation of millionaires. And if Dave is right that the export floodgates are about to open, many more people will get very rich. To learn more about the invention that's changing the world, and how you can participate in America's oil boom, click here. Click here to post a comment on InvestmentU.com "First, I had local cable... Then I tried a satellite dish... Now I have a drinking problem." If you HATE the cable company, then you're not alone. But here's the good news... In the months ahead, we're going to witness one company "kill the cable industry as we know it." Click here to see how it will happen. 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