TGIF May 16, 2014

The USA energy renaissance is upon us. And field research is how we are staying ahead of the pack, choosing great investments to grow your portfolio. I spent the week in TEXAS to assess which solid companies will morph into great stocks. As you know, there are thousands of good companies that do not make money for investors. Field research supplements our fundamental and technical work.

I spent the week in Texas, visiting clients as well as Energy companies. I’ve been doing this for 10 years now, and the growth has been massive during this time. By the end of the year, Texas oil production could exceed the output of every OPEC country but Saudi Arabia. Texas produces more than both Iraq and Iran.

Production has doubled in 3 years. It’s having a huge impact on the US economy. We can be energy independent by the end of the decade. That’s a really big deal.

I toured south Texas, between Houston and San Antonio, an energy play called the Eagle Ford Shale which is proving to be the greatest economic development in Texas history. It has generated over $60 Billion to the Lone Star state¹s economy and has created over 100,000 high paying jobs. The Eagle Ford alone should provide energy for a generation. Texas has long been oil country. The rig in the picture was from the 1940s, when the US was the largest energy producer in the world.

Dependence on foreign oil for decades made us vulnerable, particularly with Russia and the Middle East. Importantly, the Russian – Ukrainian issue is having very little impact on our economy. We don’t need Russian energy. But Europe does.

I will be filing a detailed report as soon as I unpack, kiss my kids and wife. As always, we will be back in the office early and dark on Monday morning so stay tuned for more insights from the Texas oil fields.

Have a nice weekend.

By: Mike Frazier

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