The U.S. is still recovering from the Great Recession, which has substantially lowered America’s economic growth levels. This lack of economic growth is preventing job creation and leading to a persistent and sustained elevated level of unemployment.
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New York, NY (PRWEB) November 25, 2012
In a recent Investment Contrarians article, editor and financial expert Sasha Cekerevac reports that the International Energy Agency (IEA) has just come out with a report stating that, by 2017, the United States will be the top oil producer in the world, replacing Saudi Arabia. Cekerevac adds that in that same report, by 2015, the U.S. will be the top gas producer in the world. (Source: “U.S. to overtake Saudi as top oil producer—IEA,” Reuters, November 12, 2012.) According to Cekerevac, as the top oil and top gas producer in the world, economic growth in the U.S. could be spurred by a strong competitive advantage and technological advancements in the oil and natural gas industry.
“The U.S. is still recovering from the Great Recession, which has substantially lowered America’s economic growth levels. This lack of economic growth is preventing job creation and leading to a persistent and sustained elevated level of unemployment,” states Cekerevac, who believes that one of the main drivers for economic growth over the next several decades will be a derivative of oil prices.
According to the Investment Contrarians expert, the increase in oil prices over the past couple of decades has led American firms to develop world-leading, technologically sophisticated methods of extracting both oil and natural gas from beneath the ground. This has resulted in massive increases of both oil and natural gas production in America, notes Cekerevac.
“The results have led to a huge discrepancy in both gas and oil prices between America and the rest of the world,” states Cekerevac, noting that both oil and natural gas in America trade at significantly cheaper rates. “What this means is that for industries that use natural gas and oil, this lowered cost for a crucial input is a huge competitive advantage that will certainly help to drive economic growth over the next several decades.”
He adds that with gas and oil prices around the world expected to remain high for decades, many international firms will be looking to hire companies with expertise in advanced extraction techniques and technologies. This is where America leads the world, which will also help drive economic growth in the future, he notes.
As the Investment Contrarians expert explains, the greater the supply in America is increased, the lower gas and oil prices can be reduced here versus the international markets. He concludes that this offers a huge advantage to domestic companies, while also attracting foreign firms to set up facilities within the U.S., all of which helps economic growth.
To see the full article, and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing, and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work, and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.