Financial Sense Newshour on Energy
John Hofmeister: The US Has No Energy Policy–The Consequences Could Be Dire
We could quickly end our unemployment problem by rebuilding and expanding our energy infrastructure
Jim welcomes John Hofmeister, former president of Shell Oil and founder of the non-profit association Citizens for Affordable Energy. John speaks about the ongoing frustration of special interest groups and politics trumping sensible energy policy. John also discusses the "four mores" of energy: more energy from all sources, more infrastructure, more environmental protections, and more technology for energy efficiency.
Nicole Foss: Unconventional Oil Not a Game Changer–Peak Oil Still a Problem
The real issue is the flow rate, not the amount of oil reserves in the ground
Jim welcomes back Nicole Foss from TheAutomaticEarth.org. Nicole believes that the addition of unconventional oil and gas is not a game changer, and peak oil will still be a problem. She sees the real issue as one of flow rate, not the amount of oil reserves in the ground. Nicole also sees major problems with our energy infrastructure, especially that we don’t have enough pipelines where we really need them.
Joe Dancy: Higher Food Prices Ahead−Possible Repeat of 2007-2008 Global Food Crisis
China & Japan consuming more oil, driving consumption higher
Jim is pleased to welcome energy expert Joseph Dancy. Joe sees many bargains in energy stocks, with more acquisitions likely. He also believes global food prices are going much higher, and we could see a repeat of the disruptive 2007-2008 global food crisis. Joe also sees higher oil prices, from both oil production losses in Iran and Norway, and higher oil consumption in China and Japan.
Kurt Wulff: Natural Gas−The Next Energy Opportunity
Get paid for your patience with Royalty Stocks−The best way to play natural gas
Jim welcomes back Kurt Wulff CFA, from independent energy research firm McDep LLC. Kurt reaffirms his confidence that investors should stay the course investing in North American income and small cap stocks for return and growth. Kurt believes that natural gas demand is growing rapidly to take advantage of new supply as a result of the horizontal drilling and fracking breakthroughs. Kurt also discusses a conservative way to play the energy market, investing in strong dividend payers Exxon and Chevron.
Bill Powers on the Problems at Chesapeake Energy
Exxon’s Big Bet−Shale Oil
Jim welcomes back Bill Powers of the Powers Energy Investor newsletter. Bill and Jim discuss the short-term underperformance of the energy stocks, and the problems at Chesapeake Energy. Longer term, Bill is very bullish about shale gas and the companies involved in the sector. Bill also discusses the "pipeline wars" and why energy stocks represent a better play than the commodity for the long-term investor.
Joseph Dancy: Why West Texas Intermediate Crude Is Heading Higher
As spread between WTIC and Brent Crude narrows, gasoline prices will rise
Jim welcomes back Joe Dancy to discuss the energy markets. Joe sees the completion of new pipeline projects in Texas narrowing the spread between WTIC and Brent crude, which could lead to price hikes in gasoline prices. Joe also expects crude oil and food prices to remain highly correlated, and up-trending over the next several years, which should be a very positive environment for companies in both sectors.
Ronald Stoeferle: Higher Oil Prices Coming−OPEC Has “Nothing To Spare”
The petro dollar system is losing its influence
Jim welcomes back Ronald Stoeferle CMT, from Erste Group Bank in Austria. In his recent oil report "Nothing To Spare" Ronald notes OPEC spare capacity is virtually non-existent and we have reached a peak in conventional oil production. He also sees the "Petro Dollar" system losing its influence, as some countries begin to buy Middle Eastern oil in other currencies.
Kurt Wulff: Oil Markets to Tighten; No Spare OPEC Capacity
Conventional oil has peaked
Jim welcomes back Kurt Wulff CFA, independent energy analyst at McDep LLC. Kurt sees the oil markets tightening, as OPEC has run out of spare capacity. He also expects natural gas prices to rise like oil did in 2009, as natural gas operators cap unprofitable wells. Lastly, Kurt discusses four energy stocks he currently sees as attractive values.
Chris Nelder: Danger Zone−Oil Spare Capacity Decreasing
World oil production from 2005-2011 nearly flat
Jim welcomes back Chris Nelder to discuss the recent IEA report on global oil production. Chris sees a growing danger zone as Saudi Arabian production decreases, as well as global spare capacity, while demand for oil continues to grow as the global economy recovers.
Kirk Sorensen on Thorium−The Magic Elixir That Could Solve Our Energy Needs and Global Warming
The Growing Movement of Thorium Around the Globe−With China in the Lead
Jim is pleased to welcome back Kirk Sorensen, a leading proponent for liquid-fluoride thorium reactor technology, to discuss the growing thorium movement around the globe. Kirk notes that thorium has 10,000 times more energy density than coal, as well as providing growing applications in the medical field. The Chinese are clearly the leaders in developing thorium reactors, with the United Kingdom looking at the potential of thorium to replace coal as a domestic energy source. The US invented the technology, but is not among the global leaders in thorium reactor development.
Bill Powers: New Pipeline Projects Should Ease Pressure On Gas Prices
Politicians in US and UK may use the Strategic Petroleum Reserve to bring down gas prices in an election year
Jim welcomes Bill Powers, Editor of the Powers Energy Investor newsletter. Bill sees expansion of pipelines in Texas to the Gulf of Mexico as helping ease pressure on gasoline prices. Bill is also positive on energy equities, as he sees continuing Quantitative Easing from the Federal Reserve directing money into hard assets such as energy-related companies.
Jim’s Big Picture: Goodwill Spending Part 2–The California Nightmare
Also on the Big Picture: The Next Oil Shock–Why $4 and $5 Gasoline is Inevitable
In this segment, Jim looks at the growing California fiscal crisis in part 2 of Goodwill Spending. He also discusses the Next Oil Shock, and explains why $4 and $5 gasoline is in your future. Jim also answers more of your Q-Calls this segment.
Grant Williams: Supply Is Now the Dominant Factor in the Global Oil Price
US Economy doing well in an election year, propped up by Fed monetary stimulus
Jim is pleased to welcome back Grant Williams, Portfolio and Strategy Advisor for Vulpes Investment Management in Singapore and writer of the popular (and free) investment blog 'Things That Make You Go Hmmm...' This week Jim and Grant discuss oil, interest rates and China. Grant is watching the bond market closely, and says when the bubble finally pops, nothing will be able to stop it.
Joseph Dancy: IEA Report Shows OPEC Spare Capacity Is Diminishing
Embargo against Iran will cut oil output by one million barrels a day
Jim welcomes back Joe Dancy to discuss the energy sector. Joe notes the recent IEA report citing shrinking spare capacity in OPEC countries, as well as recent unrest in Sudan, Libya, Syria, Nigeria and Yemen leading to supply disruptions.
Kurt Wulff: Energy Stocks Are Incredibly Undervalued
US needs to expand pipeline infrastructure
Kurt Wulff CFA, Independent Energy Analyst at McDep LLC, joins Jim Puplava this week to discuss the energy markets. Kurt sees opportunity in the energy stocks, which he believes are greatly undervalued. He specifically likes the oil royalty trusts, as opposed to the natural gas royalty trusts. Kurt also sees a great need to expand the pipeline infrastructure in the US to handle new oil and gas discoveries in the US and Canada.
Technician Louise Yamada: Gold Correction Healthy; Nasdaq Emerging From 10-Year Consolidation
Also, Ryan Puplava with a Market Update and Rob Bernard with the Fixed Income Report
Jim welcomes back noted technician Louise Yamada this week. Louise sees many positives, including energy forming a bottom, gold going through a healthy correction, and the Nasdaq finally breaking out of a decade-long consolidation. In addition, Ryan Puplava gives his update on this week’s market activity, and Rob Bernard has the Fixed Income Report.
Dr. Peter Warburton: Global Inflation Working, But There Will Be a Price To Pay
Inflation has been rising globally for more than a decade
Jim is pleased to welcome back Dr. Peter Warburton, Director at Economic Perspectives Ltd in London. Peter notes that the latest economic indicators are surprisingly good, as monetary "easing" seems to be working. However, he sees a price to be paid down the road with much higher levels of inflation. Peter also believes oil will continue to rise in a slow, grinding process to the $150 a barrel range.
Jim’s Big Picture: Killing the Golden Goose−Depression or Hyperinflation?
Also on the Big Picture: P.I.T. Stop−Riding the Petroleum Inflation and Taxation Wave
On this week’s Big Picture segment, Jim discusses two topics that will have an effect on future economic activity: "Killing the Golden Goose−Depression or Hyperinflation?" and also "P.I.T. Stop−Riding the Petroleum Inflation and Taxation Wave."
Economist David Rosenberg: US Recovery At Risk
Rosenberg favors gold, hard assets, high-dividend stocks and corporate bonds
Jim is pleased to welcome back David Rosenberg, Chief Economist & Strategist at Gluskin Sheff & Associates in Toronto. David believes the US recovery is at risk due to three potential sources: rising oil prices, a possible European recession, and major tax hikes in the US. David favors the Canadian and Australian currencies, as well as gold, hard assets, high-dividend stocks, corporate bonds and basic necessities.
Eoin Treacy on the Jevons Paradox and the Renaissance of US Energy
Hard Landing in China Unlikely
Jim welcomes Eoin Treacy, Global Strategist at Fullermoney.com in London this week for a global-macro discussion. Eoin sees a renaissance in US energy production with the recent massive natural gas discoveries. He also sees the bull market in stocks lasting for at least another year, and believes that China will be able to engineer a soft landing for its economy and avoid a crash.