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From 1996-2005, I was a Wall Street buy-side and sell-side Energy analyst; with the last seven years spent as an Institutional Investor-ranked service, equipment, and drilling analyst at Salomon Smith Barney in New York.  Believe it or not, that period of my life characterized a passion and commitment to Energy that I now demonstrate in Precious Metals; as described in my November 2011 RANT, “TWICE IN A LIFETIME.”

During that decade, I experienced EVERYTHING imaginable in the oil and gas sector; and traveled the world learning about it.  When I left Salomon in February 2005, the consensus “long-term” oil price estimate was roughly $25/bbl – of Wall Street analysts and global oil companies alike; which in hindsight, fell “just a bit short” of REALITY…

oil-price-expectations

At the time, it was tar sands – particularly in Canada – that were hailed as the “next great thing” that would permanently reduce global energy costs.  As it turns out, tar sands have been a major BUST; given a host of issues including energy intensity, environmental damage, logistics, and costs

The Tar Sands Disaster

…amongst a LONG line of failed “next great things”; from “Austin Chalk” oil drilling (pioneered by Chesapeake Energy)…

austin-chalk-oil-production

…to Ethanol…

The Disastrous Failure of Corn-Based Ethanol

…to hybrid-electric cars; a subject (not so) near and dear to my heart, after having spent three years as head of Investor Relations of Geovic Mining – which unsuccessfully attempted to develop a cobalt mine in Cameroon, Africa (cobalt is utilized in the lithium-ion batteries that power hybrid cars)…

Hybrid cars: an economic failure

Today, the “next great thing” is shale gas extracting – utilizing environmentally dangerous fracking methods.  Believe me, I know fracking well, as I covered the world’s largest fracking companies for years – such as Halliburton, BJ Services, and Carbo Ceramics.  This is not a new technology, but its application in certain geologic formations has created a sharp production increase in recent years…

estimated-annual-us-dry-shale

Unfortunately, it hasn’t prevented WORLDWIDE crude oil prices from reaching – and hovering around – ALL-TIME HIGHS for years.  And now that a substantial sample of such work is available, the “shale gas bubble” is starting to burst

The Fracked-up USA Shale Gas Bubble

Some of the nation’s most optimistically promoted projects are falling flat on their faces

Ohio’s $500 Billion Oil Dream Fades as Utica Turns Gassy

…as what do you know – shale gas drilling is also ENERGY INTENSIVE…

N. Dakota Bakken Oil Boom Will End in a Bust, Just like ’49 Gold Rush

…and MASSIVELY DEPLETING…

us-shale-extraction

…resulting in plummeting reserve estimates…

U.S. shale gas reserve estimates plummet

…and plunging shale driller stock prices; such as Devon Energy…

dvn-april-22-2013

…and – how about that – good old Chesapeake Energy…

chk-april-22-2013

I am no oilfield engineer.  However, I know enough about BUBBLES to have an idea when they’re right under my nose; as when I discussed the Bitcoin Bubble just three days before it crashed (time stamp 8:30 to 11:00)…

Precious Metal Investing Update w/ Ranting Andy Hoffman of Miles Franklin Apr 6 2013

Perhaps “shale gas” will in fact yield the “Energy Independence” America has so desperately sought for decades

annual-us-crude-oil-1997-2011

However, I’ll take the “under” on that bet…

The last eight U.S. Presidents promised energy independence, nobody did it!

PROTECT YOURSELF, and do it NOW!

Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.