Future of Domestic Energy
During the mid-2000s, many believed that the U.S. would run out of natural gas resources within a matter of decades. Then a new technology called “fracking” made it possible to access massive supplies of natural gas across the country. This resulted in an excess supply of natural gas and the price of natural gas falling below $2 in 2012.
Naturally, this same idea of fracking has been applied to oil. Similar to how fracking has increased the supply of natural gas, new oil reserves are becoming accessible in the U.S. and are being sent to Cushing, Oklahoma. These excess oil reserves have been building up in Cushing, and this has driven down the price of oil in the U.S.
So why does all of this matter? Our investment committee believes we are at the beginning of a secular bull market and domestic energy is a big piece to the puzzle. Read this week’s Thought of the Week to find out how our economy will greatly benefit from the future of domestic energy.
Click Here for the Weekly Thought As an Investment Advisory Representative working in conjunction with Global Financial Private Capital (GFPC) we are provided weekly thoughts on what is happening in the economy and the market. Written by our investment committee at GFPC we find these thoughts to be informative and interesting.