Smart Money with Keith Springer Saturdays at 1PM and Sundays at 6AM on NewsRadio KFBK 93.1 FM and 1530 AM

Smart Money with Keith Springer Newsletter- Energy Independence Can Push The Market Higher

Energy Independence Can Push the Market Higher

Written by Keith Springer | 4.25.13EnergyIndependence

I was struck by a slow moving, but powerful advancement few are talking about that could change the world, or at least America,  in our lifetime. It is estimated that the U.S. will become the world’s #1 producer of both natural gas and crude oil within 5 years. Our domestic American oil production will rise from 5.6 million barrels a day to 9.1 million in just 2 years by 2015, meaning that we would produce almost 50% of our total 20 million barrels/day consumption rate, up from only 27% today. This is something no one expected 10 or even 5 years ago, and let me tell you, this is huge!

The value of the extra 3.5 million barrels produced per day works out to $122 billion a year at current prices (3.5 million X 365 X $96). That will drop America’s trade deficit by nearly 25% over the next three years, and will also offset much of the growth in China’s oil demand. Fewer oil exports to the U.S. also vastly expand the standby production capacity of Saudi Arabia. With increased supplies, OPEC will be forced to lower the cost. I don’t need to tell you that lower fuel costs will have an enormous effect on or economy at every level. As an added benefit, we all long for the day when we will no longer need to spend trillions of dollars and risk American lives in a war over oil resources.

The best part though, is that energy independence creates jobs, a lot of jobs! According to energy guru Daniel Yergin, in his Pulitzer Prize winning book on oil, The Prize, energy has created 1.7 million jobs in the last 5 years, and will double that in the next three. It has also created $60 billion a year in new revenues from taxes and oil leases. As the U.S. has increased its natural gas exploration and production, gas prices have dropped from $18cf to $2 and are at multi-year lows. This is driving international manufacturing companies to come to America and produce products because of lower prices! How’s that for a turn of events?

Even with this enormous energy boom advantage, we will still fight an uphill battle against the demographic wave I discuss in Facing Goliath- How To Triumph In The Dangerous Market Ahead, and it may be several years before the benefits are felt throughout our economy. Until we reach the next boom economic cycle, investors (especially those in the retirement red-zone) must remain properly invested to get the best returns with the least risk possible, as our investment approach is built to do.

…… and that’s where we can help. To learn more about our powerful proprietary Investment Management Strategy which manages risk and delivers returns in any market, and/or get a free second opinion on your portfolio, simply reply to this email, attend one of my free investor Workshops, or call for a no-cost no-obligation consultation today at (916) 925-8900.

Springer Financial Advisors ("Advisor") is a federally registered investment adviser located in Sacramento, California. Advisor and its representatives are in compliance with the current filing requirements imposed upon registered investment advisers by the Securities and Exchange Commission and the State of California. Advisor's web site and its emails of general distribution are limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Advisor's web site on the Internet or dissemination of informational emails should not be construed by any consumer and/or prospective client as Advisor's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. A copy of Advisor's current written disclosure statement discussing Advisor's business operations, services, and fees is available from Advisor upon written request. You may also obtain publicly available information about Advisor through the SEC website as follows: Advisor does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Advisor's web site or incorporated in an email, and takes no responsibility therefore. All such information is believed to be reliable and authoritative but does not constitute sufficient information to be the sole basis for sound investment decisions and all users thereof should be guided accordingly. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Advisor) made reference to directly or indirectly by Advisor in its web site, email, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s). Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client or prospective client's investment portfolio. Certain portions of Advisor's web site (i.e. articles, commentaries, etc.) may contain a discussion of, and/or provide access to, Advisor's (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. The information is of a general nature and should not be applied indiscriminately to particular situations wherein it may not be completely applicable. Advisor is neither an attorney nor an accountant, and no portion of the content should be interpreted as legal, accounting or tax advice.