Will Obama's Veto Kill This Profit Opportunity?

Energy & Resources Digest View in Browser Wednesday, October 14, 2015 Something Strange Happened During the Financial Crisis Between the market high of October 9, 2007, and the market low of March 5, 2009, the stock market lost 7,569 points - a 53% drop in 18 months. $19.2 trillion or more in household wealth was wiped out. Virtually every stock dropped... some all the way to zero. But one strange thing happened... a certain stock ended up climbing 277%. To find out why... and how you could have spotted the one winner in all that mess, go here. White House Threatens Veto of Crude Export Bill David Fessler, Energy and Infrastructure Strategist, The Oxford Club This past Friday was a historic day in Washington. The House passed HR 702, a bill lifting the ban on U.S. crude oil exports. The vote had bipartisan support. Many government agencies - including the Congressional Budget Office, the Energy Information Administration and the Government Accountability Office - have found that allowing crude oil exports would mean lower gas prices. More than 12 independent studies have found that lifting the ban would create more jobs. They also found that removing the ban would provide national security benefits and raise the U.S. GDP. And investors stand to benefit, too. A 7-Minute Habit That Brings Home Thousands of Dollars Imagine setting aside just seven minutes... and making more money this year than most people make at their full-time jobs! Even better, this 7-minute habit requires no fancy equipment of any kind - you can start with just a pencil and a piece of paper. Click here to see how you could bring home $121,000... after practicing the habit just 10 times! More crude exports would mean exploration and production (E&P) companies wouldn't have to worry about cutbacks. Because American crude is the light, sweet variety, it's easier and cheaper to refine. Refiners around the world would all be eager buyers of our crude. Without export limitations, West Texas Intermediate prices (the benchmark for American crude) would gradually increase and eventually surpass the prices of heavier, harder-to-refine Brent crude. Many of those in support of lifting the ban argue that if we allow Iran to export crude then we certainly should allow U.S. suppliers to do the same. That's a good idea. The oil industry said the bill would help producers in the U.S. compete against Russia, Saudi Arabia and Iran. American Petroleum Institute President Jack Gerard issued a statement: "Today's vote starts us down the path to a new era of energy security. American producers would be able to compete on a level playing field with countries like Iran and Russia, providing security to our allies and accelerating the energy revolution that has revitalized our economy." Twenty-six Democrats joined with 235 Republicans in a vote of 261 to 159 to lift the 40-year-old ban. So why did so many Democrats side with Republicans on this issue? That's a simple one. Many states depend on the oil industry for jobs. Voting against the bill wouldn't be popular in those states. So what happens next? The bill will now move to the Senate. Once there, its passage likely won't be smooth. The White House has already said Obama will veto the bill. Obama is between a rock and a hard place. In countless policy speeches during his two terms, he has taken credit for America's newfound energy wealth. Now it seems he can't let go of an outdated ban put in place 40 years ago. America's growing glut of oil isn't getting any smaller because the refineries here aren't set up to process it. Lifting the ban would allow oil to be shipped to refineries set up to handle light, sweet crude. It could send the price of American crude surging. E&P companies would take advantage of rising prices, producing more and hiring workers back. The entire industry would be able to compete fairly in the global markets instead of being at the mercy of Saudi Arabia. This is an absolute no-brainer for the White House and the Obama administration. If the bill passes, look at big independent E&P companies with a large exposure to oil production. Oil pipeline MLPs should be on your radar as well. If Obama vetoes the bill, don't give up on U.S. crude suppliers. A few E&P companies can make money in today's environment. Focus on those with very low production costs. Those are primarily found in the Permian and Bakken oil fields. This is a very timely, controversial issue. I'd like to hear your thoughts on it, positive or negative. Leave a comment using the link below. Good investing, Dave Click here to post a comment on EnergyandResourcesDigest.com How to Beat the S&P by 1,000% Take a look at these three groups of stocks. Over the last 10 years, the S&P rose 61.34%. Another group rose 764.85%. And a third made 1,059.53%, almost 17 times more than the S&P. To find out why these stocks outperform the broad markets by so much, go here now. We Also Recommend... Sucker Punch! Russia Could Join OPEC by Sean Brodrick Monday, October 12, 2015 Russia's biggest takeover might be ahead… and it could rock the world. Read On… The Oil Industry's Day of Reckoning by Ryan Fitzwater Saturday, October 10, 2015 This October has the potential to send oil and gas companies scrambling for help. And it all has to do with one word: redetermination. Energy investors, pay attention to this week's chart. Read On… Supernatural Strength in a Weak Market by Matthew Carr Wednesday, October 7, 2015 This integrated energy company is staying strong despite a tough market. So strong, in fact, it's showing up Big Oil. Read On… You are receiving this email because you subscribed to Energy & Resources Digest. 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