These days, all it takes is the click of a mouse on any news website — even the big media outlets — to find glaring examples of our government’s inefficiency.
Consider the recent VA scandal. Higher-ups in the Department of Veterans Affairs fudged the numbers to hide their inefficiency and advance their careers, and it ended up costing lives.
Or take a look at pretty much any state-run pension plan. Chicago, Detroit, New York City, Stockton… they all face huge shortfalls thanks to mismanagement and the corruption of public trust. The disparity between those government-run pension plans (or even government-run medical services, for that matter) and their private sector counterparts is shocking.
Regular, private retirement funds have worked well for decades, and the United States has some of the best private hospitals in the world — even with the bloated prices we encounter.
So should it really come as a surprise when I tell you the government is squandering an oil fortune worth billions of dollars?
Squandering an Oil Fortune
We got another bitter taste of just how inefficient our government can be after the EIA reported that sales of fossil fuels from federal and Native American lands decreased by 7% during the FY 2013.
Despite the slim production increase last year, production from oil, coal, and natural gas dropped 21% between 2003 and 2013. (I also can’t help but note that about three-quarters of this decline happened on the most recent administration’s watch.)
There was even a decrease in oil production in the federal waters of the Gulf of Mexico, where most private offshore drillers have been making a comeback ever since BP’s Macondo incident and the drilling moratorium that soon followed.
Estimates from Wood Mackenzie show that ultra-deepwater production from the Gulf will reach 1.5 million barrels per day this year — a 15% year-over-year increase. And yet government sales in the Gulf of Mexico are still in a slump.
Of course, there’s also the most ironic part of the EIA’s report… our government’s war on coal. You see, it’s only a matter of time before the U.S. government realizes that the latest regulations against coal-fired power plants will come back to haunt them.
As it turns out, 51% of all fossil fuel sales from federal lands last year were from coal!
Invest Smarter
Trust me, there’s a much smarter way to bet on our energy boom — and Anadarko Petroleum is just one of many examples. The company is one of the biggest producers in the Gulf of Mexico, and as you can see below, shares have nearly doubled over the last two years.
Unfortunately, things simply aren’t as easy as they were a few years ago, when crude oil bottomed around $30 per barrel. Back then, you could blindly throw a dart against the wall and hit big.
Things are a little different today.
The name of the game now is efficiency. As I’ve said time and again, we know where the oil is… now it’s just a matter of driving down both the time and money it takes to extract these reserves.
If you don’t think our oil supply is getting more expensive, just take a look how much costs are on the rise:
Click Chart to Enlarge
Remember, the EIA’s data only goes back to 2007. Since then, we’ve added nearly three and a half million barrels per day to domestic production — most of which is from tight oil plays, where wells can cost upwards of $10 million or more!
My readers and I have been following a slew of companies that are the real reason why the United States is producing almost 8.5 million barrels of oil on a daily basis.
And make no mistake here — they are the ones that have been taking advantage of a technique that has been utterly revolutionizing drilling technology. In fact, it’s not a stretch to say that it’s allowed them to tremendously cut the unusually high costs that are associated with today’s tight oil and gas boom.
Not only are they cutting costs, but they’re also drilling wells at an incredible rate. Just one of our latest oil stocks is capitalizing heavily on this technology, which has caused us to take immediate action.
I recommend you take a moment to learn the full the details behind this game-changing drilling technology — including this blockbuster oil stock still flying under Wall Street’s radar — at absolutely no cost to you.
Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.
