{"id":38488,"date":"2013-05-22T11:23:56","date_gmt":"2013-05-22T15:23:56","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=38488"},"modified":"2013-05-22T11:27:37","modified_gmt":"2013-05-22T15:27:37","slug":"how-the-shock-in-new-oil-production-could-be-the-worlds-greatest-scam","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/05\/22\/how-the-shock-in-new-oil-production-could-be-the-worlds-greatest-scam\/","title":{"rendered":"How the Shock in New Oil Production Could Be the World\u2019s Greatest Scam"},"content":{"rendered":"

\"How<\/a><\/p>\n

By Profit Confidential<\/b><\/p>\n

\u201cShockwave,\u201d \u201crevolution,\u201d \u201cbonanza,\u201d and \u201cparadigm shift.\u201d<\/p>\n

These are just some of the provocative words in the\u00a0Medium Term Oil Market Report-2013<\/i>\u00a0that was just released by the International Energy Agency (IEA).<\/p>\n

I don\u2019t think I\u2019ve ever read a more enthusiastic and fervent document from a government body in my life.<\/p>\n

The IEA is an organization funded by 28 countries that was created after\u00a0oil prices<\/b>\u00a0skyrocketed in 1973 and 1974. As policy, the agency doesn\u2019t forecast oil prices.<\/p>\n

The IEA\u2019s executive director, Maria van der Hoven, said, \u201cNorth America has set off a supply shock that is sending ripples throughout the world.\u201d (Source: \u201cSupply shock from North American oil rippling through global markets,\u201d International Energy Agency web site, last accessed May 15, 2013.)<\/p>\n

The IEA forecasts the North American oil supply will grow by 3.9 million barrels of oil per day (mbopd) from 2012 to 2018. That\u2019s significant.<\/p>\n

Chart Industries, Inc. (NASDAQ\/GTLS) out of Garfield, Ohio is an oil and gas storage manufacturer that was recently featured in these pages. (Read \u201cThis Is an Investment Theme Worth Paying Attention To<\/a>.\u201d)<\/p>\n

But the biggest gain of all, according to the IEA, will be in global oil refining capacity, which is expected to surge by 9.5 mbopd over the next five years, led by China and the Middle East.<\/p>\n

The report said that higher oil prices over the past few years provided the backdrop for the \u201crevolution.\u201d Lofty oil prices helped make fracturing technology (used to extract oil from under rock) and Canadian oilsands production economically viable.<\/p>\n

What\u2019s most interesting (and worrisome) is that the report said the supply \u201crevolution\u201d is transforming the global supply chain, but that future economic growth related to the global oil industry will be strongest in commercial storage capacity and global hubs to support long-haul crude oil. (Source: Ibid.)<\/p>\n

The ripples that van der Hoven is referring to have serious consequences\u2014and not just for oil prices.<\/p>\n

The report implies that the North American production boom, may only be that. With oil prices where they are (or better) much of the new hydrocarbons are going to get sent directly overseas.<\/p>\n

The benefits of the\u00a0oil<\/a>\u00a0and gas resurgence (refining, new infrastructure, jobs, spin-offs, the chance for lower oil prices, and lower prices at the pump) could essentially be shipped overseas.<\/p>\n

There are infrastructure benefits (and costs) occurring now because of the oil and gas build-out. Oil prices recently strengthened.<\/p>\n

The IEA said that every aspect of the global energy industry will experience some degree of \u201ctransformation\u201d over the next five years.<\/p>\n

I believe it. But if the \u201cbonanza\u201d simply gets shipped overseas, a huge opportunity will be lost.<\/p>\n

The IEA and Exxon Mobil Corporation (NYSE\/XOM) predict North America will become a net energy exporter by 2030.<\/p>\n

When I read this report from the IEA and considered what it hinted at, it made me think how important it is not to give away the store.<\/p>\n

Energy in all its forms (and alternative energy) has so much potential to help revitalize the U.S. economy.<\/p>\n

Source –\u00a0http:\/\/www.profitconfidential.com\/stock-market\/how-the-shock-in-new-oil-production-could-be-the-worlds-greatest-scam\/<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Profit Confidential \u201cShockwave,\u201d \u201crevolution,\u201d \u201cbonanza,\u201d and \u201cparadigm shift.\u201d These are just some of the provocative words in the\u00a0Medium Term Oil Market Report-2013\u00a0that was just released by the International Energy Agency (IEA). I don\u2019t think I\u2019ve ever read a more enthusiastic and fervent document from a government body in my life. The IEA is an … <\/p>\n

Continue reading “How the Shock in New Oil Production Could Be the World\u2019s Greatest Scam”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-38488","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/38488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=38488"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/38488\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=38488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=38488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=38488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}