An article below, I suspect we are just scratching the surface. We, this hemisphere, will become the
controllers of global energy, the Persian Gulf will be a lesser player. Mexico's economy is improving. Saw that Kinder wants to ship gas down there. Lock in the Canadian reserves. Shift in Venezuela. We need leaders. Buy infrastructure cos.
With oil production at a twenty year high and predictions of a manufacturing renaissance for the U.S.
economy, one of the world's largest investment banks has detailed how the "shale revolution" will negatively affect emerging markets such as China.
Hydraulic fracturing, or "fracking," has helped lead a revolution in gas and oil production in the United States. The new technology is unlocking oil and shale gas resources, spurring economic activity and giving industry a competitive edge with less expensive gas and electricity prices.
These developments could lead to the industrialization of the U.S. economy and could deliver sustainable growth, Morgan Stanley said in a research note on Wednesday.
With the help of cheap energy, manufacturing will pick up and move down the ladder to capturing the production of less "sophisticated" goods (computers, fabricated metals and automobiles) currently manufactured in emerging nations. As a result, the United States will likely compete with emerging markets for market share rather than being a consumer, Morgan Stanley said.
"As the manufacturing renaissance takes hold in the U.S., the move down the value-added ladder in the U.S. is likely to clash with China's need to further increase the sophistication of its manufacturing base," it said.
Harald, The hype about US oil and NG production has a very shaky foundation. The production decline rates will require massive drilling at massive costs. WRT natural gas, I would not invest in a LNG export facility. If our NG prices rises to a profitable level, our NG in Europe will cost more than the Russian gas. If the Canadians start exporting LNG to Asia, that would be profitable.
Hugh, nice to hear from you. I agree, there are a lot of moving parts to global energy. Exxon just came out with a report in the past couple of days, that said by '40, NA will export 5% of its oil and 25% of it nat gas production. Not sure that time frame is very useful to us post mid lifer's. Also, LNG seems to be in demand around the globe but the projects are over running their cost estimates. And most are writing off coal, not sure that is a good call. I do think that for the next few years, infrastructure cos will need to move oil and gas to different locations, that don't have current capability.
Have you made your move, hope the transition is going well.