Dead-Cow Bounces

The world needs new oil, and it doesn't appear that the U.S. shale patch will save the day like it did 15 years ago. The good news is there’s another America-sized shale patch in Argentina, and it could make early investors a fortune. The world needs new oil, and it doesn't appear that the U.S. shale patch will save the day like it did 15 years ago. The good news is there’s another America-sized shale patch in Argentina, and it could make early investors a fortune. The world needs new oil, and it doesn't appear that the U.S. shale patch will save the day like it did 15 years ago. The good news is there’s another America-sized shale patch in Argentina, and it could make early investors a fortune. The world needs new oil, and it doesn't appear that the U.S. shale patch will save the day like it did 15 years ago. The good news is there’s another America-sized shale patch in Argentina, and it could make early investors a fortune. [Energy and Capital logo] Dead-Cow Bounces [Christian DeHaemer Photo] By [Christian DeHaemer]( Written Mar 29, 2022 “No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we’ll ever see on this earth.” — Ronald Reagan The Security and Exchange Commission (SEC) is getting into the act of bigger government by implementing new rules that will save the world and the people on it. These include environmental, social, and governance disclosures (ESG) from public companies. Here is the mission statement from the SEC on its own website: Created on October 26, 1936, by Commonwealth Act (CA) 83 also known as the Securities Act, the Commission was tasked to regulate the sale and registration of securities, exchanges, brokers, dealers and salesmen. Nowhere in that statement does it say that the SEC is responsible for global climate, racism, or “governance” (whatever that means). Yet spokespeople for the SEC were on Bloomberg radio yesterday talking up the need for more ESG rules and regulations. It doesn't matter that there is already a government agency called the Environmental Protection Agency that looks after the environment. There is also the Office for Civil Rights (OCR), which enforces social laws. And “governance” didn’t stop Jon Corzine — or Nancy Pelosi, for that matter. But I digress… How to Play the $30 Trillion ESG Trend ESG (environmental, social, and governance) investing is predicted to become as big as $30 TRILLION... And with climate change making the headlines every day, one tiny company could become an ESG darling. Early investors already made 1,172% within a few months... And as soon as a green ETF includes this firm in its portfolio, shares could soar much higher. Today, you can get in for less than $5. But with a radical new global climate policy unfolding, there’s not much time to act. [Click here for all the details.]( We all know what this is about. It’s about oil. The elites in this country hate oil, coal, and natural gas and are seeking out ways to impede its production. Five-dollar gas is nothing to them. They will fly private jets to Davos to talk about climate change and fly them back to their oceanfront mansions before writing a screed about the melting glaciers. The SEC rules will just add layers to impede the production of oil and gas. The oil patch was already monkey-hammered by hostile banks, falling production, weary investors, and an oil price that went negative about 18 months ago. Capital expenditure in oil and gas has been falling for years. In 2014, $135 billion was spent a quarter. By 2021 that number was just $40 billion. The last time oil was over $100 a barrel, capex was three times larger. Oil companies are running well below replacement rate. Lag Time There is also a huge lag time in oil production. The price of oil hit its record high of $142 a barrel in 2008. And yet production didn’t really start to ramp up until three years later. Production topped out in the U.S. with a record high of 13.1 million b/d in February of 2020. It got crushed with COVID shortly after when the price of crude fell below $20. All new drilling stopped, and some wells were permanently capped. Big Oil lost $76 billion over a two-year period and 260 oil companies filed for bankruptcy. Furthermore, due to decline rates of shale wells, this means that production fell off a cliff, to 9.7 million barrels a day by the end of 2020. Production has since climbed back to 11.85 million b/d in 2022. It is expected to be 12.99 million b/d in 2023. So in that sense, the U.S. oil patch is back. However, demand increased from 18.19 million b/d in 2020 to 20.84 million b/d the next year. Globally, demand is expected to climb by 3.6 million b/d in 2022. Breaking News: 6 New Cryptos Set to Be Bigger Than Bitcoin It’s no secret that cryptocurrencies are at the absolute cutting edge of investing. In fact, CBS News recently reported that Bitcoin alone created over 100,000 new millionaires... And CNBC put forth a headline that reads “I Just Became a Dogecoin Millionaire.” But what the media aren't covering... is what’s coming next. They don’t want you to know about the six new coins expected to be FAR BIGGER than any previous crypto gain...[The details are inside this new report.]( Emerging Market Oil The upshot of all this is that the world needs new oil. It doesn't appear that the U.S. shale patch will save the day like it did 15 years ago. They just can’t produce another 5 million b/d in this climate. The good news is that there is another America-sized shale patch in Argentina in the “Vaca Muerta” (or "dead cow") formation, which was discovered in 2010. Few people know it, but Argentina now has the fourth-largest oil reserves in the world. Total proven reserves are around 927 million barrels. Estimated oil reserves are 22.5 billion barrels. The U.S. EIA estimates total recoverable hydrocarbons from the Vaca Muerta formation to be 16.2 billion barrels of oil and 208 trillion cubic feet of natural gas. Up until a few years ago, the Argentine government imposed price caps on oil and natural gas, which, of course, kept investors out. More recently, the government has been pushing tax breaks and other subsidies to bring investors in. It’s Working Just this week, the Middle East Development Funds (a part of OPEC) announced that it will invest more than $1 billion to build pipelines and other infrastructure in Argentina. Argentina reeks of oil opportunity we haven't seen since 2008 in the Permian Basin. Early investors could make a fortune. My good friend Luke Burgess has written up a free research report with all the details that he'll be unveiling this Thursday, so keep an eye out — you won't want to miss it. All the best, [Christian DeHaemer Signature] Christian DeHaemer P.S. In other news, did you know that the U.S. government spends more than $80 billion on a set of clandestine military programs collectively called the “Black Budget”? All the important details about these programs are shared with just a small group of insiders — giving that small group the chance to become incredibly wealthy. My colleague Jason Simpkins is about to change all of that. He’s preparing to pull back the curtain on the “Black Budget” and show investors like yourself the type of information that’s crucial to turning small investments into astonishing wealth. All you have to do is secure your spot for the advanced screening of Jason’s new investigative series, [Secret Stock Files, by joining here.]( Browse Our Archives [These Naked Traders Are Killing the Market While Investors Lose Their Shirts!]( [Putin Will Burn the World to the Ground Before Giving in to Western Demands]( [The Future of Energy Is Here]( [Buy Dips for Big Oil Win]( [The Next Automotive Revolution Is Already Here]( --------------------------------------------------------------- This email was sent to {EMAIL}. It is not our intention to send email to anyone who doesn't want it. If you're not sure why you've received this e-letter, or no longer wish to receive it, you may [unsubscribe here]( and view our privacy policy and information on how to manage your subscription. To ensure that you receive future issues of Energy and Capital, please add newsletter@energyandcapital.com to your address book or whitelist within your spam settings. 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