The Contrary Indicator put out an article today that was enlightening. It declared that Europe is close to NOT being America's largest trade partner. According to them, the U.S. has being increasing trade with Canada and Mexico and some other countries outside Europe to the extent that what they are losing in Europe they have gained elsewhere. This is a bit of good news re the impact Europe's crisis and lower spending programs will have on America's exports. Let's hope this is true.
Another enlightening article was one with comments from Daniel Yergen, an expert in the O&G field. He explains the use of fracking to capture more oil in North Dakota and other western hemisphere countries making America less dependent on Mideast oil. Previous posts had already mentioned the venture Exxon has with Russia. This included the fracking process in Siberia and will increase their supply also.
Private Industries to the rescue. It may still be too high expense for all oil & gas concerns to start fracking, but if countries like America and Russia provide the tax cuts necessary to exploit the new technologies OPEC will be pressed also to respond with cheaper oil. Lots of work on the government policies is needed. This probably won't be realized with OBlunder in charge.
I still believe O&G will lead the market to higher levels. But, when?
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