TGIF May 17, 2013

Last week, I visited the “Lone Star” state.  It’s become an annual event for me to spend quality time with our clients down there.  In the 9 consecutive years that I’ve traveled through Texas, from Dallas-Ft. Worth to Austin, and everywhere in between, I have observed first hand the rebirth of this US energy revolution that started in Texas, and seems to be gaining momentum.  It’s a very powerful theme, a game-changer of sorts. The best growth stories around the globe are both in Energy and Tech, and they’re both found on US soil.  In fact it’s US technology that is driving the renaissance of US energy.  It’s a powerful combo with significant investment implications.

One of my stops last week was at a natural gas processing plant.  These facilities are like a big chemistry lab.  They’re actually not too different from a brewery or distillery.  I saw first-hand how the raw commodity was broken down and purified and then sent down the pipelines.  Among the results are propane, ethane and butane.  We see them in our daily lives with the abundance of plastics, rubber, lubricants and detergents.  So chances are the shoes you’re wearing, the car you’re driving, the water you’re heating, the food you’re cooling, the clothes you’re cleaning and the cosmetics you’re using were heavily influenced by oil and gas.

There are few topics more heated and controversial in our nation than how to harness energy and fuel our daily lives.  The problem is, the discussions tend to be represented by the polar extreme positions; from “Drill Baby Drill” to “Not in my Backyard” to the “Need to be Green” at any cost.  The loudest voices aren’t always the wisest.  The solution, like so many important issues, falls somewhere in between.  And the majority of Americans simply want cheaper, cleaner and stable energy sources.  We’ve finally got them.

These are the important facts as we see them:

  • America needs to develop clean and renewable energy sources.  But they’re neither affordable, nor ready for prime-time yet.  More investment needed, but real progress is being made.
  • The world still runs on crude, and that’s not going to change in the near future.
  • Dependence on foreign oil is costly, dirty and dangerous to our health and well-being.
  • We now have a 200-year supply of both oil and gas, and it’s American owned and operated.
  • Natural Gas is a much cleaner and cheaper fossil fuel, and can be used as a bridge between crude and renewables.
  • The abundance of new energy supplies has US manufacturing the envy of the world again and is the biggest job creator today.

Despite years of lobbying and debating,Washington has yet to formally weigh in on the issue of energy.  In fact, it’s been 4 decades since the United States has had a comprehensive energy policy.  The Free Market has moved forward, and to the benefit of the US economy.  Not only do we have the opportunity to be energy independent, we are in a position to kick start our economy and launch the next big thing since the advancement of the internet.  It’s that big.

The most important factor is a new energy policy needs to be pragmatic and responsible.  We need to think about today, tomorrow and decades to come. Our future depends on it and it’s happening.

Speaking of the future, we wish JK and Adena a bright, healthy, and happy future in their lives together.

Have a nice weekend.

By: Mike Frazier

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