The Energy Sector Will Reignite Investor Profits in 2009

The Energy Sector Will Reignite Investor Profitselection race called for American energy
In 2009independence - now an impossible goal.
The political lack of will and action will focusAs the price of oil retreated so has America's goal
investor attention on the profits from higher oilto create a realistic plan of action.
prices in 2009 and the refocus on a slow revival inThe Apprentice Millionaire Program Energy
nuclear power and a continuing use of coal.Investment Guide for 2009
A History of Political Inaction Equals Profits forIf America will do little or nothing to reduce oil
Investorsdependence , investors can do more than wring
The Current Plantheir hands and hope for action from the new
The political talk of oil independence and more oiladministration.
drilling in America is only talk. In fact low prices forA ) Oil
oil and uranium are discouraging supply expansion.Our watch list now highlights three large
The current " Picken's Plan " for America tointegrated oil companies . All have the reserves
develop more wind power and a conversion fromand production to meet the needs of the U.S. and
foreign oil to natural gas is laudable. However,developing nations in the next decades
investors should focus on the likelihood of littleWe are recommending ( NOTE Prices are as at
being done over the course of the next severalDecember 31, 2009 )
years.Exxon Mobil ( XOM) $ 79.83
(The result is continued and expanded use of coalConoco ( COP) and $ 51.80
,oil and nuclear power.)Chevron Texaco ( CHV) $ 83.97
To succeed the electricity generated by wind hasOur AMP 2009 forecast is for a return to oil
to be transmitted. The expansion planned inprices of $ 60 - $ 75 a barrel as the economy of
Texas and mid- America across a national gridthe U.S. and the developing nations of China , India
has to be delivered to the large industrial and, Russia and Brazil ( BRIC) continue to grow.
residential centers in the U.S. eastern seaboard.The weakness of these choices is that despite
The current national grid cannot transmit thatmassive capital expenditures they are not
power. Few states ( i.e politicians ) have thereplacing their reserves as fast as they are selling
national interest in mind to pay for a grid thattheir oil . Combined with supply short fall in Mexico
requires the right -of -way and infrastructureand Russia the AMP is looking at the Alberta oil
building though their state lands - to benefit userssands producers as a reliablesupply in a friendly
in other areas.political environment.
Even if the expansion and updating of the nationalSuncor Energy ( SU on NYSE)
grid is part of a new stimulus package aThe caveat here is that oil sands require higher
successful expansion is years away . In thepricing to support the expensive expansion ofthe
meantime oil and coal producers will prosper.Suncor production . Suncor has announced delays
The U.S. History - " All we learn from history isto the expansion plans when oil fell to $ 40.
that we do not learn from history."B ) Nuclear
The Oil Crisis of 1973The AMP agrees with a developing forecast of a
In response to the Israeli success in repulsing thenuclear renaissance. However, most of the
Egyptian - Syrian attack Saudi Arabia embargoedexpansion of nuclear power is outside the U.S.
the U.S. The result was long line-ups at U.S. gasInvestors have an opportunity to participate in
stations and alarming recognition of U.S.the revival . Uranium pricing fell over the last two
dependence on middle east supplies.years to $ 50 a pound but may revive when the
President Nixon called for greater use of coal andChina plants ( two to three a year for the next
nuclear power - and called for American energyfive years) and the European plans start to
independence. The result was the predictableproduce . The only company we recommend is
political inaction and a growing dependence onCameco ( CCJ on NYSE)$ 17.25because it has a
foreign oil.dominant position in production and the expansion
President Carter in a famous "sweater address"possibilities which junior producers cannot match .
almost a decade later called for Americans to turnC ) Coal
down their thermostats and for energyIn Coal we are recommending :
conservation. The result was the continuedPeabody ( BTU) $ 22,75
inaction and a growing dependence on foreign oil.Arch Coal ( ACI) $ 16.29
The Oil Crisis of 2008As with nuclear , conservation minded
In 2008 oil soared to a record $ 147 a barrel.environmentalists may deplore the U.S. use of coal
Gasoline prices moved as high as $ 5.00 a gallon.to produce half of America's electric power - but
Americans were alarmed as their personal andas investors we are satisfied that there is no
national budgets moved offshore to the nationsalternative.
who benefited most and liked America least.Investors must maintain a pragmatic view of the
Barrack Obama said that America was nowabsolute need for energy and the profits that
financing both sides of the War on Terror.flow form that need.
President Bush and all candidates in the 2008