By Marin Katusa
The State of the Union Address was given by President Obama on February 12, 2013. The speech was very typical of a presidential speech, outlining the administration's plans for the coming year while citing the need for more unity, patience, and cooperation. The speech was laced with optimism and painted a very rosy picture for the future of the US, particularly its energy sector.
Unfortunately, nothing could be further from the truth.
In his speech, Obama declared that the United States is "poised to control [its] own energy future." To most of those listening to his speech, it might sound plausible, but only if you ignore some important facts:
- The United States is producing more oil than at any time during the past 15 years - due to technological innovation. Can that continue?
- Cars are becoming more fuel efficient - though Obama has not "doubled the distance our cars will go on a tank of gas," as he has claimed.
- The United States is producing more power from renewable sources like wind and solar - only because large amount of government subsidies have kept them afloat.
- Solar energy will become cheaper and United States will take advantage - remember failed solar company Solyndra?
Obama seems to be drawing from the flawed conclusions of the International Energy Agency (IEA), which has stated that the United States will become "all but self-sufficient" in energy by the year 2035, and surpass Saudi Arabia as the world's leading oil producer by 2017.
Why do we say that they are flawed? Because the IEA is making several assumptions that are misguided at best and flat out wrong at worst. The IEA, like Obama, is assuming that everything will go perfectly right for the United States: technology will be seamlessly implemented; politics won't get in the way of development; and the burgeoning energy bureaucracy will not destroy the energy industry.
At Casey Research, we have thoroughly analyzed the report and are preparing an in-depth, <em>Mythbusters</em>-style analysis of the conclusions made by the IEA which we will be publishing soon. Though we do not want to give any spoilers, we will say this ahead of time:
All is not well in the state of the union.
But there is a silver lining: In-the-know investors have a fantastic opportunity to leverage the mistakes of the IEA and the Obama administration to gains that could be life-changing - and the <em>Casey Energy Report</em> can show you exactly how.
The only question now for you is: Will you join us, or are you going to blindly believe the words of Barack Obama and watch this rare chance at historic energy profits pass you by?