Oil Industry Connection

COMING CRISES AND THEIR SOLUTIONS is the direct result of investment research to discover lesser known stock investments with above average potential.. Toward that end the author subscribes to numerous techno / resource newsletters. Among them, Dr. Kent Moors’ “Oil & Energy Investor,” Agora Financial’s “Outstanding Investments” by Byron King, “Wall Street Insights & Indictments” by Shah Gilani, etc. What struck the author as noteworthy was that the facts and analyses of these knowledgable experts constantly ran counter to the popular wisdom and the anti-business attitudes of the major media – even to the information espoused by the financial press. This aroused his curiosity and lead to many hours of research among such sources as the US Geological Survey, OPEC publications and academic journals in attempts to verify the contrary data.

Indignant at the brazen attempts to mislead and poison the atmosphere for legitimate debate and once embarked on this path, the author set out to disseminate the data as it applied to the major issues under discussion (despite the climate of the election campaigns) – not to take sides but to make the public aware of the contrary facts. Because the author believes that hydrocarbon energy, its availability and cost, is the primary driver of an expanding economy – and will be far into the future as nations modernize – irrational constrictions on its supply are not rational. Further, the author experienced the
deleterious consequences of adding ethanol to gasoline when his gasoline powered golf cart and emergency water pump refused to start after a period of disuse because their carburetor and fuel lines were “all gummed up” – and no one had warned him of this problem. And then there was the campaign to malign the whole oil industry for making “obscene” profits when every investor knew that the oil industry made only modest profits (and nothing like the information technology companies) despite there outsized needs for capital to invest in drilling platforms and $720 million drilling ships. In addition, whereas a typical well once cost a maximum of one million dollars, the new horizontal “fracking” wells cost at least five million dollars each.

The more he learned about the huge capital investments and technological advances in mapping new fields through sonar and seismic techniques and the incredible logistics involved in finding petroleum 600 miles at sea by drilling one mile below sea level and then through six thousand feet of salt bed to find oil at 39,000 feet with two entire highly paid crews working around the clock just staggered his imagination. He felt the industry deserved praise for its heroic efforts and huge contributions to modern life while constantly improving its environmental imprint and paying dependable dividends much sought after by pension funds and retired investors – not the undeserved image of being a dirty business contaminating the atmosphere and with outlandish profits at the public’s expense. In truth, the facts gleaned from research into many aspects of our energy and environmental policies encouraged the idea of publicizing his findings while, at the same time, analyzing the facts and possible solutions to other of our impending crises.

To top it all off, he heard a political debate about our education crises in which one campaigner maligned his opponent for having said “class size doesn’t matter.” The author had just learned of the top South Korean education system that had the highest class sizes in the developed world. That did it! He was certain the public did not know the facts relating to our many crises – and weren’t likely to learn them. Thus, the book.