Big oil companies struggle to justify soaring project costs.
http://www.jeremyleggett.net/2014/01/big-oil-companies-struggle-to-justify-soaring-project-costs/
WSJ: “Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC
spent more than $120 billion in 2013 to boost their oil and gas
output—about the same cost in today’s dollars as putting a man on the
moon. But the three oil giants have little to show for all their big
spending.”
“Oil and gas production are down despite combined capital expenses of a half-trillion dollars in the past five years. Each company is expected to report later this week a profit decline for 2013 compared with 2012, even though oil prices are high.
One of the biggest problems: Costs are soaring for many of the new “megaprojects” to tap petroleum deposits needed to replenish depleting fields.
Plans under way to pump oil using man-made islands in the Caspian Sea could cost a consortium that includes Exxon and Shell $40 billion, up from the original budget of $10 billion. The price tag for a natural-gas project in Australia, called Gorgon and jointly owned by the three companies, has ballooned 45% to $54 billion. Shell is spending at least $10 billion on untested technology to build a natural-gas plant on a large boat so the company can tap a remote field, according to people who have worked on the project.
As they pursued the big-bet strategy, the three oil giants arrived
late to the shale boom in North America, where they missed out on
profits raked in by smaller, nimbler companies that pioneered how to
extract oil and gas from the dense rock.”
Exxon boss cries over natural gas glut, tells us we’re climate crybabies
[If anyone out there knows how to code, I'd love to put a little
widget down below where it says HA_WIDGET. All it needs to do is print
the word "HA" over and over again until the end of time. Like,
literally, forever. Thanks.]
Yesterday, ExxonMobil CEO Rex Tillerson complained that, “We are all losing our shirts today. We’re making no money. It’s all in the red.”
HA_WIDGET
Tillerson’s complaint of course wasn’t about oil. In oil, his company
is so far in the black that black holes are getting sucked into its
gravitational field.
Last year, ExxonMobil earned profits totaling $41 billion. In other words, the company made $78,000 every single minute of the year. January 1, 12:01 am: $78,000. January 1, 12:02 am: $78,000. ExxonMobil made more in a minute than the average American household makes in a year — with $26,000 to spare. ExxonMobil could have paid a household’s bills every minute and thrown in a new car just for kicks.
Tillerson’s complaint was about natural gas. Drilling is happening so
broadly that supply is rising quickly. A slower economy and warm winter
in the Northeast suppressed demand, making profit margins low.
Yeah, that warmer winter. Rex knows about that. He knows about global warming and yada yada. And he has a message for us: Chill out.
Tillerson, in a break with predecessor Lee Raymond, acknowledged that global temperatures are rising. … He said that people would be able to adapt to rising sea levels and changing climates that may force agricultural production to shift.
Warmer winters are a total drag when people aren’t buying
awesome natural gas. But when warmer weather means flooded cities and
reimagining the world’s food production: Learn to deal, guys.
Seriously. That’s basically his argument, that we’re too stupid to understand that this isn’t a big deal.
Tillerson blamed a public that is “illiterate” in science and maths, a “lazy” press, and advocacy groups that “manufacture fear” for energy misconceptions, in a speech at the Council on Foreign Relations.
“We have spent our entire existence adapting. We’ll adapt,” he said.
You should probably bookmark this page for when ExxonMobil is
foundering, struggling with increased drilling costs and the looming
reality of a shift away from fossil fuels. When Rex Tillerson (who will
have been dead 100 years, but whatever) comes crying about Exxon’s woes,
put your arm around his shoulders, look into his eyes, and say, “You’ll
adapt.”
Until then, sorry that the warmer winter caused by fossil fuel
emissions meant that you’re not making as much money as you’d like. In
the words of Shakespeare: boo-fucking-hoo.
We're Making No Money
Exxon CEO: "We're Making No
Money"
http://www.investorvillage.com/smbd.asp?mb=4245&mn=774054&pt=msg&mid=13568706
By Nick Hodge | Wednesday,
February 19th, 2014
Call me a Cassandra.
I just don't think this whole "shale
revolution" is going to end well. I've been saying as much in these pages
for months.
First, the concessions...
Yes, U.S. oil production is slated to
break a 43-year-old record next year, with production exceeding 9.3 million
barrels per day (bpd).
Yes, many forecasts call for U.S. oil
production to exceed Saudi production in the next few years.
Yes, fracking has created boomtowns in regions
where large shale deposits exist, like the Bakken, Marcellus, Haynesville, and
others.
But production and population flows don't tell
the whole story — especially regarding the economics of it all.
Three Reasons the Shale Boom is
Bust
I've already told you that four of the biggest shale
players — Chesapeake Energy (NYSE: CHK), Southwestern Energy (NYSE: SWN),
Devon Energy (NYSE: DVN), and EOG Resources (NYSE: EOG) — actually lost
money between 2008 and 2012. They put out $132.8 billion in capital
expenditures to buy equipment and drill holes but only regained $80 billion in
cash flow from operating activities...
Meaning those four main shale players actually
lost $52.8 billion amid this "boom."
There are a couple reasons for this, which are
also the reasons I see hype quickly fading from the shale industry.
First and foremost are decline rates. The world's
existing oil fields have an average decline rate of 4% to 5% per year.
By contrast, the typical Bakken well declines at
a rate of 40% per year — nearly ten times faster than the global average.
As of December 2013, Bakken oil wells were losing
63,000 barrels of production per day. That means if companies in the Bakken
wanted to increase oil production in December, they had to add more than 63,000
barrels per day of production.
They did... but at ever-increasing (read:
unsustainable) costs, which is why cash flow is negative.
Second are prices. Analysts at Bernstein Research
found the marginal cost of U.S.
oil production underwent an unprecedented jump from $89 per barrel in 2011 to
$114 per barrel in 2012.
The price of West Texas
crude hasn't been above $114 in the past three years.
If it costs $114 to produce a barrel of oil but
you haven't been able to sell it above that price in three years... how do you
make a profit?
Same with natural gas. Most accept that shale gas
wells are profitable when gas prices are $4–$6 per thousand cubic feet (mcf).
Some argue it's closer to an $8 breakeven point.
But natural gas has only been above $4 for a few
months since 2011.
An analysis by shale expert Art Berman shows that
only 6% of the wells in the Haynesville are commercially viable at $6 natural
gas. We haven't seen $6 natural gas in nearly five years.
ExxonMobil (NYSE: XOM) CEO Rex Tillerson was even
quoted as saying before a meeting of the Council on Foreign Relations:
"We are all losing
our shirts today. We're making no money. It's all in the red."
Indeed, Art Berman's Labyrinth Consulting
Services has found that none of the shale gas plays are commercial at
present gas prices.
(Click to Enlarge)
That's some boom.
I'll grant that technology has allowed for increased efficiency in the form
of pad drilling and other techniques. But you can't beat the law of diminishing
returns. At best, these technologies have created a temporary equilibrium to
offset decline rates.
Third are rigs.
The U.S.
has 48% of the world's oil and gas rigs. There are 3,713 rigs in the world. The
U.S.
has 1,764 of them.
Yet the U.S.
only produces 9% of the world's oil (8 mpd of 92 mpd) and 20% of the world's
gas (681.4 bcm of 3,363.9 bcm).
Is it a "boom" if you need 50% of the world's oil and gas rigs to
produce 29% of its oil and gas?
Slowly Comin' to Jesus
All the majors reported absolutely dismal earnings a few weeks ago, citing
higher production costs but lower production.
Chesapeake has already sold out of a million
acres in the Permian
Basin. Hess (NYSE: HES)
has sold out of the Eagle Ford.
You already saw the Exxon CEO come to Jesus above.
And other major bodies are starting to admit what's behind the shale
curtain.
In an article titled, "Why America's Shale Boom Could
End Sooner Than You Think,"Forbes reported:
Growth has been remarkable; we now produce more oil than we import. But
contrary to wishful thinking we will not become independent in oil by the end
of the decade. There’s just not enough available capital to both combat
hyperbolic decline rates and add meaningful incremental volumes. The returns on
investment just aren’t good enough...
That same article noted, "It's bad enough to be spending more and more
to generate ever less growth. It's worse when that growth doesn't even
translate into profits."
The Wall Street Journal ran this headline last month: "Big Oil Companies Struggle
to Justify Soaring Project Costs."
There's also the admission of Dave Demshur, CEO of Core Laboratories (NYSE:
CLB), an $8 billion company that analyzes drilling results for all the majors
and hundreds of smaller oil companies. The company has data on all major oil
and gas basins on the planet.
Last year, he was quoted at the Oil & Gas Conference saying, "The
maximum yearly oil production of the planet is taking place now!" When
asked if the U.S.
could achieve energy independence, he simply said, "No chance."
And finally, the Christian Science Monitor is now asking, "What Happens When The Shale Boom Ends?"
Here's the answer. And it's not pretty.
Call it like you see it,
Nick Hodge
http://www.angelnexus.com/o/web/55945?r=1
You
Recognize This Well-Dressed
Con Man?"
Con Man?"
If
not, you could LOSE over 50% of your savings
starting this year during
what is being called
"The BIGGEST Con Job In Wall Street History."
what is being called
"The BIGGEST Con Job In Wall Street History."
*Click on the 2-minute video
below to discover who this man is...
How he ties into the biggest con job in Wall Street history...
And how you can position yourself to DOUBLE or TRIPLE
your wealth while millions lose the shirts off their backs...
How he ties into the biggest con job in Wall Street history...
And how you can position yourself to DOUBLE or TRIPLE
your wealth while millions lose the shirts off their backs...
Flash version 9,0 or greater is required
You have no flash plugin installed
http://www.angelnexus.com/o/web/55945?r=1
Click here to
download latest version
Hey... Nick Hodge here.
If you ever read stories or watched movies about
con men, you'd know there are two general types of cons.
First, there's the short con — one in which you
could lose $20-$100 in just a few moments, like in a game of Three Card
Monte... a con game many hustlers play on street corners in cities throughout
the world.
And then there's the long con — one
that could play out over the course of months or even years.
Many times, people fooled in these long cons can
lose tens of thousands of dollars... and in some cases, their entire
life savings.
One of the best-known long cons is the
"Ponzi scheme," named after Charles Ponzi, shown in the picture
above.
In this scheme, investors are promised a
higher-than-normal return on their investments.
However, the return doesn't come from
profits from running the organization... it comes from new investors
investing money into the moneymaking scheme.
In other words, it's a matter of taking the
investment money from Peter, Paul, and Mary to pay returns to Mark, Mike, and
Susie who invested in the scheme earlier.
So as long as you have new money coming
in consistently from newer investors to pay returns to investors who got
started earlier, all is well
But the problem is the whole house of cards falls
down if there's no new money coming into the system. And as you can
guess... there are only so many suckers that will pay into the system. Once you
run out of new "investors," the jig is up.
Remember Bernie Madoff? That was nothing compared
with what I'm about to share with you.
Right now, tens of millions of Americans and
others around the globe are actually voluntarily paying into the largest
Ponzi scheme of the past 100 years... and they don't even realize it.
To be clear, this has nothing to do with Social
Security or Medicare... even though both are very similar to a Ponzi
scheme.
And because of what my research shows will happen
starting this year...
You, along with tens of millions of others, could
lose over 50% of your retirement savings — with little or no notice.
Imagine the value of your bank accounts... your
brokerage accounts... your 401k... your IRA... all cut in half — practically
overnight.
Do You Think Losing Up to 50%
of Your Wealth Can't Happen to You?
If so, you'd be wrong... as it has happened many
times before to people who thought it couldn't happen to them.
In fact, in a moment, I'll also show you how this
could begin to happen over the next few months.
Nobody in the mainstream media is talking about
it. The financial bobbleheads on TV are afraid to mention it. Financial
publications won't write about it.
Why?
Because if they told you and the tens of millions
of other people who are being played as suckers in this con game...
... Not only would the "game" be over,
but the executives at the too-big-to-fail banks and financial institutions on
Wall Street who are running it would fear for their lives once word got out
about this cleverly-disguised scheme.
And we don't have to look as far back as the
Great Depression to understand what happens when a country's currency
collapses. We can look to more recent times...
In fact, since 1990, there have been several
major currency crashes throughout the world.
Consider the Mexican peso crash of 1994, when
— in just 42 days — the value of the currency plummeted 39%.
Or in 1997 during the Asian Currency Crisis, when
Thailand's currency — the Thai baht — lost 23% of its value in just 25 days...
and then lost another 41% of its value in the following six months.
But these weren't isolated events...
The same thing happened in Brazil in
1996... in Russia
in 1998... in Argentina
in 2001... in South Korea
in 2007... and in Iceland
in 2008.
Each time, tens of millions of people were
affected.
Quite frankly, I'm sure I'll be upsetting a whole
lot of financial "big-wigs" and political figureheads by bringing
this story to light.
And truth be told, I don't know how long I'll
even be able to keep this research available online once certain "powers
that be" get wind of it.
But let me assure you, it's certainly NOT
all doom and gloom...
In fact, while it is inevitable that many people
will have their savings and investments literally wiped out later this year, a
handful of people who position themselves correctly for this financial upheaval
stand to profit immensely.
You see, there are a few simple steps you can
take right now that can not only protect your existing wealth when this house
of cards comes crashing down... but can also give you the opportunity to DOUBLE
or TRIPLE your financial net worth.
I'll reveal them in a moment... but before I do,
let me show you some disturbing facts that nobody is willing to share with
you...
The BIGGEST Con Job in Wall Street History
Right now, you are witnessing the BIGGEST con job
in Wall Street history. You may even be contributing to it without giving it a
second thought.
You see, the entire stock market as we know it is
one giant Ponzi scheme. I'll show you why...
Recently, as you may recall, the Dow Jones
Industrial Average reached historic highs of 16,400 in January 2014
— while in 2009, the DOW was at just 6,626.
That's a miraculous climb of almost 10,000 points
in less than five years.
Never before did the market rise so much in so
little time. (I'll show you why it has risen and why it's a "sucker's
rally" that will wipe out people's retirement accounts.)
And despite President Obama and the financial
bobbleheads on TV claiming we're out of the recession and into a recovery...
... The true unemployment
and underemployment rate is at 25%.
... Half of all U.S. households
receive some form of government "benefits."
... And over 60% of American workers have less
than $25,000 in total savings.
With that said, I'm sure you'd agree that doesn't
sound like much of a recovery.
In fact, it's a countrywide train wreck just
waiting to happen...
And as scary as that may all sound... for
many Americans who may be doing alright financially at this moment, it's about
to get worse... much worse.
Because while the Ponzi scheme is scary in and of
itself, it is what's feeding this Ponzi scheme that will really take many
people by surprise.
Allow me to explain...
This Hidden Research Will Change EVERYTHING
About How You Spend, Save, and Invest This Year...
While traveling for business late last year, I
met a very interesting financial researcher named Steve. He's spent years
studying the markets, and I'm humbled enough to say what he uncovered left me a
bit dumbfounded.
After asking him question after question about
his research, I came to the realization that what he pieced together is
probably known only to 100 people in the world.
And though I like to think of myself as a highly
educated and experienced investor, what he showed me completely
changed how I look at the entire financial system and investing. His work was
so groundbreaking, scary, and enlightening — all at the same time — I
asked him if I could share his research with my readers.
He warned me about the impact his data could have
once it got out in the public and the potential consequences. But after seeing
it, I came to the conclusion that it's far too important to keep to myself...
So for right now — because of the
broad-reaching effects of his research — Steve prefers to keep the rest of
his identity hidden from the public. And in exchange for exclusive access to
his financial data... I agreed.
You see, everything we've been told about the
markets by the mainstream media has been a lie to get us to keep pumping money
into paper assets.
In fact, in addition to institutional and
individual investors — even the U.S.
government is pumping $85 billion a month with "Quantitative Easing"
to keep the economic house of cards standing.
That's over $1 trillion a year!
(*** Now, remember that amount of
money... because in a moment I'll show you how it will collapse the entire
global economy.)
Even many of the alternative media outlets have
gotten the story wrong — focusing exclusively on the rapidly declining value of
the U.S. dollar or why you must own precious metals to survive the coming
collapse.
But there's much more to it than that.
As a matter of fact, there is one key
economic factor that — once you see how it works — will completely change
everything: the way you spend, save, and invest your money.
And I mean EVERYTHING. Starting this year
.
Here's what you must know...
It all comes down to energy.
More specifically, "Energy IOUs."
If you've never heard of them before, you're not
alone.
As you probably know, the entire global economy
is run on energy... particularly oil.
You see, each day, millions of barrels of oil are
drilled, transported, and refined for fuel.
And according to the research and data I recently
received from Steve, oil production abilities have plateaued since 2005
— despite the increased demand throughout the world.
Obviously, this has led to gas prices DOUBLING
from $1.75 a gallon then to over $3.50 a gallon today.
And the only reason gas prices are still only
$3.50 a gallon is because the U.S.
government is pumping over $1 trillion of "funny money" into the
markets.
But this charade can't last forever.
Here's why...
Have You Bought into THE BIG LIE About Shale
Oil and Gas That's Fueled This Ponzi Scheme?
Before I reveal this BIG LIE about shale oil and
gas, I want to show you something nobody may have pointed out to you before...
Take any dollar bill out of your wallet... it
doesn't matter if it is a $1, $5, $10, or $20. (Go ahead, I'll wait.)
Look at the top on the front of the bill. You'll
see it says, "Federal Reserve Note."
Now, the word "note," when used in
relation to financial matters, means an instrument of debt. So, for example,
when you pay off the "note" on your mortgage or car, you no longer
have debt, and you take ownership of the title or deed.
Each dollar bill (of any denomination) is
actually a debt and therefore not considered to be money.
Yes, U.S. dollars are a currency — but they're
NOT money.
You see (and you may already know this), money by
definition is BOTH a store of value and exchangeable. That is why gold and
silver are considered money.
However, while the U.S. dollar is exchangeable,
it is NOT a store of value.
The U.S. dollar can be printed at will — and with
over $17 trillion in debt, there is only one reason the U.S. dollar hasn't
collapsed yet. And that is...
The ILLUSION of cheap energy.
As I mentioned earlier, oil production has
plateaued the past several years. So as the U.S. and emerging market countries
continue to expand their consumption of oil and natural gas, it makes you
wonder...
If production has plateaued, where is all of it
coming from?
The answer is from shale.
For the past few years, oil and natural gas from
shale have been touted as saviors for the U.S. to break its dependence on
foreign oil. Here, take a look at all the shale oil and gas basins in the U.S...
The media... talking heads on TV... and even
well-respected financial publications have been bragging about the United States
becoming "energy independent" in the coming years.
But there's just one problem...
It's all ONE BIG LIE!
You see, what most people don't know (and what
Steve alerted me to) is that the U.S. shale gas industry has
actually been a commercial failure and is doomed.
Energy from shale is nothing but a pipe dream.
See for yourself in this chart where the four
biggest shale players (Chesapeake, Southwestern,
Devon, and EOG) are actually losing
money...
You'll note that while their total combined cash
flow between 2008-2012 was over $80 billion, their total combined expenditures
were over $132 billion. That's over $52 billion in losses!
As you and any other intelligent person could
guess... they can't continue to operate at a loss.
In fact, our research shows that this whole Ponzi
scheme of the U.S. dollar being propped up by the illusion of cheap energy is
ALL about to come crashing down starting this year.
And when it does, it won't be pretty.
But if you take the precautions I mention below,
you can position yourself to weather the storm, as gas prices could quickly
double... even triple... over the course of a few months.
Imagine paying $10/gallon at the gas pumps.
Depending on the size of your vehicle, it could cost you anywhere between
$125-$320 to fill up your gas tank.
This alone will completely cripple the
middle class.
And that's just the impact on individuals driving
their vehicles
As a result of increased fuel prices, the cost of
everything will spike.
FOOD... MEDICINE... HEATING FUEL...
CLOTHING... All costing 3-5x their current amounts.
And you can bet this will cause never-before-seen
protests, riots, and absolute chaos. What's worse is this will happen over a
very short period of time.
And I'm not going to sugarcoat this... but if
this research and data proves true, it will completely change not only the U.S. economy,
but the global economy.
But as I mentioned earlier, those who take action
now and prepare for this inevitability can not only survive this chaos... they
can actually position themselves to come out ahead when the smoke finally
clears and order is restored.
And even once order is restored... again, the
entire global economy will be changed. The way you spend, save, and invest your
money will be changed forever.
So to help you prepare yourself and your family
for this, I created a special report that contains all of Steve's data (just so
you can see for yourself how this will play out), along with specific
steps to take today — before things get really bad starting later this
year once the Ponzi scheme falls apart.
This report is called, "The Omega
Report: How to Protect Your Family and Your Wealth from the BIGGEST Ponzi
Scheme Ever Created."
It is by far the most important information I've ever
shared with my readers.
I'll show you how you can download this free
report in a moment. But before I do, I think you'd be interested in this
opportunity (especially if you already own some gold).
The Gold Play That Could
Multiply Your Money Ten-Fold
Turning Every $10,000 into $100,000
Not only can you use hidden information from "The
Omega Report" mentioned above to protect and grow your wealth
during the coming market crash... but you can also get into a unique gold play
I've been investigating for the past several months.
You see, I've found there are two trains of
thought when it comes to gold...
First, you have those who have never invested in
any physical gold or other precious metals. Instead, most (if not all) of their
savings and wealth is in cash or other cash-based equities like stocks, bonds,
mutual funds, IRAs, 401(k)s, etc.
Many of the people in this group will end up
losing a great deal of their wealth starting this year once the BIGGEST Ponzi
scheme starts to unravel.
But it doesn't have to be that way, as I'll show
you in a moment.
The second group of people is comprised of the
"gold-bugs."
These individuals already know how our current
monetary system is built upon fiat currency and fractional reserve banking.
In other words, it's a house of cards that is propped
up with a bunch of digitally-created "monopoly money."
And because of this, gold-bugs invest in gold,
along with silver and other precious metals, on the premise that the government
will continue to print more money — and essentially collapse the U.S. dollar.
Maybe you've already bought some gold... and if
you did, I believe that was a smart move on your part.
No matter whether you currently own gold
or not, this opportunity will give you the chance to multiply your wealth by
a factor of 10.
I understand that may be difficult to believe, so
let me explain...
While I was working with Steve and investigating
how the biggest Ponzi scheme is about to start playing out in 2014, we came to
the conclusion based on our research that stocks of mining companies will be
among the best ones to hold during a financial collapse.
But I wasn't about to tell my readers to invest
in every single mining company they could. That would be foolish.
In fact, I set out to find the one with the MOST
profit potential and the LEAST amount of risk.
I'm calling it: The "King" Play.
Because quite frankly, if you invested a sizeable
portion of your wealth in this single play, you could very well live like a
king for the rest of your days.
Let me share with you some facts about this
remarkable mining company...
First, it owns 6-7 million ounces of gold grading
1.6 grams per ton — which is very good for a mining company.
Plus, the mining property is sitting on a huge
deposit in a friendly mining location in the western U.S. — which is good for
investors because the company won't be hamstrung with bureaucratic red
tape and restrictions as it mines.
And most importantly, its current market cap is
$115 million — and it's significantly undervalued... even at today's depressed
gold prices.
In fact, if you're among the large (and growing)
number of people who believe current gold prices have been manipulated to these
low levels (which they have), then you'll be very interested in what could
happen to the price of this mining stock when the value of gold begins climbing
back to its highs of $1,800-$1,900 an ounce and beyond.
And the fact that you can get in on this play
right now for less than $1 a share is incredible.
Unfortunately, I'm unable to share the name of
this company here for the masses to see.
That's why I've put my research on this company
(including the company's name and stock symbol) in a new special report
called, "The 'King' Play: How to Turn Every $10,000 You
Invest into $100,000."
It's only recently been made available to paying
members of my online community — but if you're interested, I'll show you how
you can get a copy of this report for free.
Why give away this valuable research report for
free?
Well, the answer is quite simple, really...The Founding of Like Minded People
Over the past few years, I've noticed a growing
number of people looking for ways to protect their wealth... shield their
personal and financial privacy... and safeguard their civil liberties.
These people don't trust the government...
banks... or big corporate institutions...
And quite frankly, neither do I.
These people were looking for ways to buck the
broken and corrupt financial system...
People of all ages, from all walks of life, who
were looking for ways to increase their income... increase
their personal and financial privacy... and increase their personal
freedoms.
All while decreasing their taxes... decreasing
their debt... and decreasing their dependence on the broken system in America.
So that's why, in the summer of 2013, I decided
to form a special one-of-a-kind online community of individuals who hold these
similar beliefs.
Today — less than a year from when we
started this community — there are thousands of members in the U.S. and around
the world.
And while corrupt politicians, bankers, and
corporate executives want to limit our financial and personal
freedoms... we believe it's time for us to expand them.
It's an idea whose time has come... and it may be
something you'd like to be a part of.
Membership in this community is by invite-only.
And you can find out if it's right for you in a
moment. But first...
There Are Some Important Things
You Should Know About Me...
As I mentioned earlier, my name is Nick Hodge.
I've co-written two best-selling books about
investing and have helped thousands of individuals make a lot of money with my
financial research over the past few years. My readers have seen gains like
Xethanol, Inc. — 159%
gains... Akeena Solar — 316% gains...
Organovo Holdings — 245% gains... Natcore
Technology — 128.81% gains... BYD Company
— 391% gains... DNI Metals — 113%
gains... Cree — 119% gains...
Alternate Energy Holdings — 426% gains...
JA Solar — 101.97% gains
And these are just a handful of the dozens of
winning recommendations I've made to others over the past few years.
Had you invested in any of those plays, you could
have easily doubled your money...
Many of my readers have done just that, and they
have contacted me to share their experiences...
So why is all this important?
You see, I'm a firm believer in practicing
what you preach.
It's also important to know that I don't mention
all this stuff about me to impress you... as I'm certainly not the bragging
type.
I merely mention all this to show you I know what
I'm talking about...
And if you're interested, I can share with you
the secrets I've discovered about massively growing your wealth and expanding
your personal freedoms.
In fact...Right Now, You Can Have Complete Access to My
Personal Freedom Library and Online Forum
As I mentioned, I've created a new online
community called Like Minded People.
And for new members, I'm providing access to
several special research reports I've created.
I detailed two of these reports earlier...
They are:
- "The Omega Report: How to Protect Your Family and Your Wealth from the BIGGEST Ponzi Scheme Ever Created" — In this newly-released financial research report, you'll discover precisely how the energy sector is set to crash the entire financial market. This is the best-kept secret going on now in order to "protect" the U.S. economy — but it is actually just delaying the inevitable crash. Once people get this report and share it with others, all hell will break loose for politicians and Wall Street. Most importantly, you'll learn exactly what "triggers" to look for and how to position yourself to protect and grow your wealth... while millions of others lose the shirts off their backs.
- "The 'King' Play: How to Turn Every $10,000 You Invest into $100,000" — Here, I'll share with you an undervalued gold mining company that will allow you to leverage gold prices with practically no risk. Right now, you can invest in this company for less than $1/share. And with gold down 30% off its high — once it climbs back up again (it's only a matter of time) — this company could be revalued, and every dollar you invest today could approach $10 per share and significantly grow your wealth... practically risk-free!
Now, you could easily make or save tens of
thousands of dollars this year alone from what you discover in those
special reports...
Still, I created many more somewhat
controversial but incredibly useful reports for new members, including:
- "On Our Own Together: The Foundation of Like Minded People" — Here, I'll reveal why I've created this community and the numerous ways you'll benefit as a new member.
- "Bucking the System: Your Three Simple Steps to Get Started" — Here, you'll discover a financial tool that is rarely ever used by individuals but is used by every multi-billion dollar corporation — a proven strategy to maximize your wealth that could mean the difference between retiring with $500,000 in savings and $5 million in savings, and the most sure-fire (and legal) method I know of... and personally use... to lower my income taxes each year. (Just doing this alone could save you tens of thousands of dollars that you'd have to pay to the government.)
- "My Secret to Real Wealth: The Three Investments You Must Own Today That Have Nothing to Do With the Stock Market" — In this report, I share the single greatest asset class billionaires are piling their money into right now. Plus, you'll discover a special commodity that has nothing to do with gold, silver, or precious metals — and has proven to consistently go up in value — that you should invest in today and that will be beneficial to you no matter what happens in the financial markets.
- "How to Break the Bank: The Best Way to Protect Your Wealth" — Here, I'll show you how to preserve your savings even if banks continue to tack on more and more service fees and surcharges. Plus, I'll share why traditional 'brick and mortar' banks are becoming obsolete because of the emergence of safe and secure online banks. And you'll discover 'alternative' accounts where you can put your savings that offer the highest interests without any monthly or annual fees.
- "Freedom from Centralized Power: What You REALLY Need to Know about Guns and Precious Metals" — In this report, you'll discover the five simple steps you can take over the next few weeks to significantly make yourself (and your family) 10 times more self-reliant and less dependent on "the system."
- "Energy Independence: A Guide to Turning the Table on the Utility and Gas Companies" — While most people are burdened with higher fuel and utility bills, a growing number of people are discovering the exceptional energy investment opportunities that allow them to make substantial profits by investing in select energy sectors. In this report, I'll show you where to get in on these plays over the next several years — where your gains could easily pay for your gas, heat, and electricity... but possibly even your mortgage payments, too!
- "The Next Level: Capitalizing on Market Shifts" — As you may know, each time the markets shift, people stand to make a substantial fortune. However, most people don't recognize when these shifts are going to happen. In this special report, you'll discover where I see the upcoming shifts occurring and how to profit from them.
Every quarter, I'll be adding new special reports
to this Personal Freedom Library that could make a substantial
difference in the ways you save, invest, and maintain your personal freedoms.
Plus, as a new member of the Like Minded
People community, you'll also get immediate access to:
- Complete 24/7 online access to a special forum where you can interact with other members of this community, asking and answering each other's questions and exchanging ideas on investing, wealth preservation, self-reliance, privacy protection, and much more...
- 12 monthly issues of the Like Minded People newsletter, mailed to you each month, where you'll discover unique investment opportunities that could consistently grow your wealth — no matter how much or how little you currently have — as well as strategies on how to (legally) live outside the "system." Plus, you'll be able to access these monthly issues from your computer or even your cell phone.
- Investment alerts and updates that you'll receive by email letting you know about special investments I'm researching. I also address our portfolio and any actions I recommend you take with our positions. And while we cannot offer personalized advice, we also publish answers to questions or comments we get from our members during these updates.
Now, you may be wondering what it costs to try
out a Like Minded People membership.
I'll get to that in a moment... and I think
you'll be pleasantly surprised with how affordable I've made it for you to try
out.
But before I talk price, I do need to make one
more thing clear...
Please Take the Warnings Above Seriously...
or Risk Putting Yourself in Serious Financial Danger
Look, I'm not trying to scare you just so I can
sell memberships or subscriptions. It's simply not in my nature to do that.
I write financial books and occasionally talk on
financial news networks so I can inform the everyday Joe about what's really
happening in the markets
.
And while the facts and research I've presented
above are not meant to scare you — they ARE meant to warn you... and perhaps
even save your financial future.
You see, some people just have a hard time going
out of their "comfort zone," and that's exactly why they'll
be caught completely off guard when the shale Ponzi scheme crashes the value of
ALL paper assets, and the value of precious metals begins to skyrocket.
That's why, if nothing else, you should read
through "The Omega Report" and "The
'King' Play" report today... so at the very least, you can
position yourself to protect your existing savings and wealth.
It will take less than just 30 minutes of your
time to do — but it can mean the difference between being able to retire in
comfort and with dignity... and needing to work until you die and enduring the
shame of relying on government handouts.
While others watch their retirements or pensions
get obliterated and are left wondering what happened... you can be in the
driver's seat, having already prepared for what others were too naive to see or
too scared to acknowledge.
I can all but guarantee that a membership in Like
Minded People is very different from anything you've ever been part of
before.
You're going to discover ideas and opportunities
you likely won't see or hear about anywhere else.
But if you're interested ONLY in ordinary stocks,
bonds, and mutual funds — and other outdated investment ideas and
strategies that those financial bobbleheads on TV talk about — then Like
Minded People will not be right for you... so please don't waste your
time.
However, if you're ready to get your retirement
planning and investments back on track and join a growing group of others who
are doing the same, then you owe it to yourself to at least check out Like
Minded People.
If you're unsure about what to do, here's what I recommend:
Take a look at everything I've described here
over the next year, and then make up your mind for yourself.
That's right... a whole year.
In other words, let me know you'd like to give Like
Minded People a no–risk look today, and we'll make sure you receive
everything I mentioned in this video.
Unlike all those other financial publishers out
there who only give you 30... 60... or even 90 days to try out their
research... we're taking it to a whole new level.
When you try out a membership to Like
Minded People today, you can take the whole next 12 months
to make up your mind.
If you decide the ideas are too "out
there" for you, or that you are better off sticking with mainstream
conventions, simply let us know, and I'll make sure you get back the money you
paid.
Believe me, there's no shame in asking for a
refund.
The ideas I'll share in the newsletters and the
updates, along with the ideas you'll hear about in the online forum, are
certainly not for everyone.
In fact, they're probably not right for most
ordinary people.
I realized long ago in my teenage years that life
is so much better when you take the road less travelled... but for some people
(for whatever reason), that just doesn't make sense.
As I mentioned before, some people just have a
hard time going out of their "comfort zone."
But the funny thing is, that's exactly why our strategies work so well — and why they can work to your advantage!
You see, if everyone were using these
techniques and secrets... and everyone felt comfortable with them... well,
they'd become mainstream, and their effectiveness would basically disappear.
The nice thing is, by accepting this invitation
today, you are agreeing only to try out a membership to see if you like it.
Trying out a membership in this "club"
puts all the risk on our shoulders. Either we live up to our claims I mentioned
today, or you get ALL your money back.
Not some of it... not a pro-rated amount... we
will refund every single penny you paid.
It's as simple as that.
The membership fee for Like Minded People,
by the way, is only $199 for one full year.
That comes to just $0.54 a day.
At that price, I am sure there's no better
bargain for access to this kind of financial research and proven
wealth-building strategies.
I promise you the ideas I introduce you to will
be different and could easily be worth an absolute fortune in your life over
the next few years.
As I said earlier, it's highly unlikely that
you'll hear about these ideas anywhere else... and the fact that you can get
all of this information for less than $1,000 is simply amazing to me.
Believe me, it is worth many, many times that
price.
And actually, the deal gets even better...
For a limited time while we run this special
offer, you can pay HALF of what we'll ask others to pay.
So instead of paying $199 like other readers will
in the future, you'll get a full year's membership, including everything I
mentioned here, for just $99.
That comes to just $0.27 a day, and it could
possibly be the best investment you ever make.
There is, however, just one catch in order to qualify for this deal...
You see, this is the first time we've ever
set up a membership community like this.
And as a result, we're building out our
infrastructure for it slowly... and can only enroll 5,000 new members this
month...
And while that may sound like a lot, when you
consider this presentation will be seen by millions of people, those spots are
sure to fill up rather quickly.
So if you click on the link below to enroll and
all the spots are full, you'll be placed on a VIP priority notification list,
and you can get started when we open up more spots next month.
I sincerely hope you take advantage of this
unique opportunity to join our growing community of Like Minded People.
Simply click the link below to get started before
this HALF–OFF Membership offer ends.
I look forward to welcoming you as a new
member...
Sincerely,Nick Hodge
Founder and Publisher, Like Minded People
P.S. When you try
out your 12-month, risk-free membership today, you'll receive immediate
access to all the financial research reports I mentioned today... along
with personal access to the online member forum, where you can interact with
other 'Like Minded People' 24 hours a day, 7 days a week.
And when you try
out your membership today, I'll also send you our newest report...
- "Your Personal Fort Knox: How to Buy and Safely Store Your Precious Metals" — Here, you'll discover how smart investors buy gold and silver coins and bullion. Plus, you'll learn why a safety deposit box at a bank may be one of the worst places to store your precious metals. I'll also share the top three places to store your gold in your home (a heavy-duty safe is actually NOT one of them!) and the best place to store your precious metals overseas (just in case things get really bad with the U.S. economy).
Plus, as a new
member, you'll be able to review ALL the existing newsletter issues, which
include our member investment portfolio.
Remember, we can
only accommodate a limited number of new members each month, so you don't want
to be put on the waiting list.
To claim your spot
right now, simply CLICK HERE.
Having trouble viewing this issue? Click here.
https://mail.google.com/mail/u/0/?hl=id&shva=1#all/1444b539f25951f5
|
|
If you're smart enough to see how the value of the U.S. dollar has declined over the years, you'll want to see
this... because currency collapses happen fast.
For example, consider the Asian Currency Crisis in Thailand. The Thai currency, the baht, lost 23% of its value in
just 25 days... and then lost another 41% of its value in the following six months.
Because of some shady "back-room deals," the U.S. dollar is set to collapse in 2014 — now is the time to
prepare, or risk losing 50% of your wealth... practically overnight.
Exxon CEO: "We're Making No
Money"
By Nick Hodge | Wednesday,
February 19th, 2014
Call me a Cassandra.
I just don't think this whole "shale revolution" is going to end well. I've been saying as much in these pages for
months.
First, the concessions...
Yes, U.S. oil production is slated to break a 43-year-old record next year, with production exceeding 9.3 million
barrels per day (bpd).
Yes, many forecasts call for U.S. oil production to exceed Saudi production in the next few years.
Yes, fracking has created boomtowns in regions where large shale deposits exist, like the Bakken, Marcellus,
Haynesville, and others.
But production and population flows don't tell the whole story — especially regarding the economics of it
all.
Advertisement
The Company that Converts Air Into Gas...
That's not a typo. One small company recently turned air into gas... The same air you and I breathe.
To say this is groundbreaking would be a VAST understatement.
I think you can understand the financial implications here... We're in unprecedented territory.
Gains of 2,500% aren't out of the question... and that's probably on the low end.
To put it plainly, this is a
stock you should own right NOW.
Three Reasons the Shale Boom is Bust
I've already told you
that
four of the biggest shale players — Chesapeake Energy (NYSE: CHK),
Southwestern Energy (NYSE: SWN), Devon Energy (NYSE: DVN), and EOG
Resources (NYSE: EOG) — actually lost money between 2008 and 2012. They
put out $132.8 billion in capital expenditures to buy equipment and
drill holes but only regained $80 billion in cash flow from operating
activities...
Meaning those four main shale players actually lost $52.8 billion amid this "boom."
There are a couple reasons for this, which are also the reasons I see hype quickly fading from the shale
industry.
First and foremost are decline rates. The world's existing oil fields have an average decline rate of 4% to 5% per
year.
By contrast, the typical Bakken well declines at a rate of 40% per year — nearly ten times faster than the
global average.
As of December 2013, Bakken oil wells were losing 63,000 barrels of production per day. That means if companies in
the Bakken wanted to increase oil production in December, they had to add more than 63,000 barrels per day of production.
They did... but at ever-increasing (read: unsustainable) costs, which is why cash flow is negative.
Second are prices. Analysts at Bernstein Research found the marginal cost of U.S. oil production underwent an
unprecedented jump from $89 per barrel in 2011 to $114 per barrel in 2012.
The price of West Texas crude hasn't been above $114 in the past three years.
If it costs $114 to produce a barrel of oil but you haven't been able to sell it above that price in three years...
how do you make a profit?
Advertisement
The 11 Highest Paying Dividends
The Guggenheims, the Gates, and the Rothschilds might have started their fortunes in risky enterprises.
But their legacies will continue thanks to this unique group of stocks.
Each one pays out monthly dividends, nearly 10X higher than the S&P!
Same with natural gas. Most accept that shale gas wells are profitable when gas prices are $4–$6 per thousand
cubic feet (mcf). Some argue it's closer to an $8 breakeven point.
But natural gas has only been above $4 for a few months since 2011.
An analysis by shale expert Art Berman shows that only 6% of the wells in the Haynesville are commercially viable at
$6 natural gas. We haven't seen $6 natural gas in nearly five years.
ExxonMobil (NYSE: XOM) CEO Rex Tillerson was even quoted as saying before a meeting of the Council on Foreign
Relations:
"We are all losing our shirts today. We're making no money. It's all in the
red."
Indeed, Art Berman's Labyrinth Consulting Services has found that none of the shale gas plays are commercial at present gas
prices.
That's some boom.
I'll grant
that technology has allowed for increased efficiency in the form of pad
drilling and other techniques. But you can't beat the law of diminishing
returns. At best, these technologies have created a temporary
equilibrium to
offset decline rates.
Third are rigs.
The U.S. has 48% of the world's oil and gas rigs. There are 3,713 rigs in the world.
The U.S. has 1,764 of them.
Yet the U.S. only produces 9% of the world's oil (8 mpd of 92 mpd) and 20% of the
world's gas (681.4 bcm of 3,363.9 bcm).
Is it a "boom" if you need 50% of the world's oil and gas rigs to produce 29% of its
oil and gas?
Advertisement
Radical technology promises to break Big Pharma profit
records
One small American company's "cell-shock" technology will soon be the global gold standard for the treatment and prevention of all the major cancers, influenza, malaria, HIV, and more... It's expected to save millions of lives — and bring over 10,000% returns to investors of this medical miracle. Click here to earn 1,000 times your money.
Slowly Comin' to Jesus
All the majors reported absolutely dismal earnings a few weeks ago, citing higher
production costs but lower production.
Chesapeake has already sold out of a million acres in the Permian Basin. Hess (NYSE:
HES) has sold out of the Eagle Ford.
You already saw the Exxon CEO come to Jesus above.
And other major bodies are starting to admit what's behind the shale
curtain.
In an article titled, "Why America's Shale Boom Could
End Sooner Than You Think," Forbes reported:
That same article noted, "It's bad enough to be
spending more and more to generate ever less growth. It's worse when that growth doesn't even translate into profits."
The Wall Street Journal ran this headline last month: "Big Oil Companies Struggle
to Justify Soaring Project Costs."
There's
also the admission of Dave Demshur, CEO of Core Laboratories (NYSE:
CLB), an $8 billion company that analyzes drilling results for all the
majors and hundreds of smaller oil companies. The company has data on
all major
oil and gas basins on the planet.
Last year, he was quoted at the Oil & Gas Conference saying, "The maximum yearly
oil production of the planet is taking place now!" When asked if the U.S. could achieve energy independence, he simply said, "No
chance."
And finally, the Christian Science Monitor is now asking, "What Happens When The Shale Boom
Ends?"
Here's the answer. And it's not pretty.
Call it like you see it, 
Nick Hodge
Nick is the Founder and President of the Outsider Club, and
the Investment Director of the
thousands-strong stock advisory, Early Advantage. Co-author of two
best-selling investment books, including Energy Investing for Dummies,
his insights
have been shared on news programs and in magazines and newspapers around
the world. For more on Nick, take a look at his editor's page.
|
(
@nickchodge on
Twitter
Tidak ada komentar:
Posting Komentar