Sponsor

2014/11/11

How to Earn Extra Returns in the Energy Sector

Let's face it: the entire sector  has been getting crushed lately; hardly anyone is immune to the volatility...
Having trouble viewing this issue? Click here.
Refer a Friend to Energy and Capital.

Company Turns Water into Gas

Since we can't control where the sun will shine or when the wind will blow, energy storage has long been renewables' Achilles heel. That is, up until now.

This one small company has discovered a revolutionary solution...

It's figured out a way to turn air, sunlight, and even water into cheap, easily stored energy. When mainstream investors hear about this incredible breakthrough, five-figure gains are not out of the question...

Click here before you miss out on this historic opportunity.


How to Earn Extra Returns in the Energy Sector
By Keith Kohl | Tuesday, November 11th, 2014
Keith Kohl

Everyone is fixated on oil prices right now.

You can't really blame them.

This is going to continue throughout the winter and into the foreseeable future, or at least until crude rebounds... and it's incredibly great news for you.

Let's face it: the entire sector has been getting crushed lately; hardly anyone is immune to the volatility.

But that doesn't mean you can't earn extra returns in energy right now as you wait patiently for the bears to exit stage left.

Let me show you exactly how...

Advertisement

Time to Buy This...

The time to buy an oil or gas company drilling in a new shale formation is when:

  1. Production is just starting;
  2. Initial wells are showing great results; and
  3. The mainstream investing public knows very little about it.

There's a new $1 company in the historic Petroplex formation that meets all three of these conditions.

With nearly 20,000 acres of land and great initial results on its horizontal wells, it's only a matter of time before this company trades at $10.

Click here for the ticker symbol.


The Long and Short of Natural Gas

Look, it's almost too easy to be bullish on natural gas over the long term.

However, the biggest mistake you could make is to see natural gas as the heir apparent to oil.

That's simply not true.

Just take a look at the reality of our energy situation:

consumption chart small

Last year, nearly three-quarters of the United States' crude oil consumption accounted for 92% of demand in the transportation sector. In order to dethrone oil — even over the course of decades — we would have to see extraordinary growth in natural gas vehicles going forward, and not just in the trucking industry.

Besides, there are better targets to take down than oil — like coal.

Earlier this year, I pointed out that the EPA has been waging a war against the coal industry. No matter which party is in control of Capitol Hill, that anti-coal sentiment won't change. After all, it's only been a few weeks since the U.S. chided Japan over its attempt to ramp up coal exports.

Thing is, that's just a case of the pot calling the kettle black. Unfortunately for the coal industry, it's much more vulnerable than its petroleum counterpart.

Take a second glance at that consumption chart above.

In 2013, 91% of U.S. coal consumption was used for electric power.

Unlike petroleum, which currently rules transportation with an iron fist, coal accounts for less than half of our electric power.

Coal plants, which were already struggling, have been under fire for the past decade. And I know this isn't the first time my readers have seen this transition away from coal plants taking place before our eyes...

coalplants11-11

Click Image to Enlarge

And that, dear reader, has directly led to coal losing its share of the electric power sector over the last 60 years:

electric power sector small 11-11

Click Image to Enlarge

Don't get me wrong, we still use — and will continue using — a tremendous amount of coal, and it remains our third-largest source of energy. The purpose here is to show you that natural gas is going to play a major role in the U.S. energy sector going forward.

Thankfully, the short-term catalysts could provide you with a little relief for your energy portfolio this winter.

Advertisement

A SIX-figure check... every month?

Richard Dockery is collecting upwards of $100,000 every single month.

The only effort he has to put into it is the short walk down to his mailbox every day.

He calls it his "Mailbox Money," and it's made him a millionaire...

It has nothing to do with dividends — just incredible investment opportunities worth six figures PER MONTH in some cases.

That's how Richard has been banking a pro-basketball salary with very little effort.

Click here to follow his lead.


Are These Natural Gas ETFs Still a Buy?

Right now, it all comes down to the weather.

I can't help but remember back in October when I mentioned The Old Farmer's Almanac's prediction for a super-cold winter. Anyone who took advantage of that forecast by picking up a natural gas-leveraged ETF like UGAZ or BOIL was rewarded with quick double-digit gains over the last few weeks...

gasetfs11-11

Click Chart to Enlarge

Once word of a major storm hitting the upper Midwest (and now projected to sweep across the Northeast, causing a 20° drop in temperatures) reached the markets, natural gas trading on the NYMEX went on a two-week price surge.

So much for an extended natural gas injection season.

In fact, the record injections still haven't put the United States' working gas inventories within the five-year average.

Yet you don't have to rely on price spikes to fulfill your natural gas gains this winter. As you and I are both know, nearly all of the growth in the United States' natural gas production is from the Marcellus formation — it's actually masking declines virtually everywhere else.

But there's an interesting development taking place that will help ease the Marcellus' burden, and it's all thanks to a very unlikely group of people: politicians.

The best part is that most of Wall Street is oblivious to the source of this new gas supply.

I'll have those details for you soon.

Stay tuned.

Until next time,

Keith Kohl Signature

Keith Kohl

follow basic@KeithKohl1 on Twitter

A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.

I liked this article | I did not like this article
Follow Energy and Capital on facebook logo twitter logo google plus logo
The Bottom Line

This email was sent to ignoble.experiment@arconati.us . You can manage your subscription and get our privacy policy here.

Energy and Capital, Copyright © 2014, Angel Publishing LLC, 111 Market Place #720, Baltimore, MD 21202. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.

Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription.

No comments:

Post a Comment

Keep a civil tongue.

Label Cloud

Technology (1464) News (793) Military (646) Microsoft (542) Business (487) Software (394) Developer (382) Music (360) Books (357) Audio (316) Government (308) Security (300) Love (262) Apple (242) Storage (236) Dungeons and Dragons (228) Funny (209) Google (194) Cooking (187) Yahoo (186) Mobile (179) Adobe (177) Wishlist (159) AMD (155) Education (151) Drugs (145) Astrology (139) Local (137) Art (134) Investing (127) Shopping (124) Hardware (120) Movies (119) Sports (109) Neatorama (94) Blogger (93) Christian (67) Mozilla (61) Dictionary (59) Science (59) Entertainment (50) Jewelry (50) Pharmacy (50) Weather (48) Video Games (44) Television (36) VoIP (25) meta (23) Holidays (14)

Popular Posts (Last 7 Days)