Many people are aware that on the first day of our new president’s reign he shut down the Keystone pipeline and has made many more questionable moves since then. While the president is a large part of the problem this is a condition that has been fomenting for quite some time.
We, in this country, have all we need to be self-sustaining but rules, regulations and interference in our daily lives has made it so that many are not producing anywhere near what we could be producing.
I am not only talking about oil and gas but also food and all other things we need to survive.
Since there appears to be an all out attack on fossil fuels- globally- not just here- many producers are cancelling new projects and pulling back on expansion. It is one thing to hear about this but it is STUNNING when you see the numbers.
I am not sure about the global numbers but here in the USA the $5.00 PLUS average for a gallon of the cheapest gas is being caused mainly by a lack of production. Consider this:
- Crude Oil Rigs operating as of last week were 574. For comparison purposes in January of 2019 the rig count was 885. In 2014, when oil was over $100.00 per barrel, we had 1,609 Rigs operating.
- Natural gas rig count as of last week was 151. In January of 2019 it was 200. In 2008 there were 1,606 rigs operating.
- While production numbers are only somewhat lower this lack of diversity in sites could cause some major problems
How long before some of these sites start to dry up? Where will we get our energy from if the producers continue to get pummeled by regulations and banks, as they have threatened, stop funding the industry.
There are plenty of resources available. It would be nice if “those in charge” would get out of the way and allow the economy to function for the benefit of everyone- not just themselves.
Remember this- no energy= no food, no lights, and certainly no quality of life as we have come to know it.
Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.
Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are overall rising.
Precious Metals, including gold, are subject to special risks including but not limited to: price may be subject to wide fluctuation, the market is relatively limited, the sources are concentrated in countries that have the potential for instability and the market is unregulated.
Diversification does not ensure gains nor protect against loss. Companies mentioned are being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk regardless of strategy.