Another First For America
Dear Rundown Reader,
What a week for the markets.
Wednesday, we set the record for longest bull run in U.S. history.
Then Thursday, we learned the U.S. has achieved another monumental feat.
The implications of which are world changing. In a good way.
Your Rundown for Friday, August 24, 2018…
U.S. Quietly Moves to Dominate the Oil Market
A world first in Texas.
And with all the Russia, Turkey, and China drama almost no one is taking note.
But, we should pause to celebrate this.
OilPrice.com reported this week the Texas Gulf coast exported more oil than it imported for the first time ever this April.
The report notes, exports exceeded imports by 15,000 barrels per day (bpd).
In May, exports increased over imports by 470,000 bpd. The divergence is highlighted in the chart below:
Source: U.S. Energy Information Administration
The reason for the U.S. oil boom is two-fold.
First, we have an incredible amount of untapped oil reserves in the Permian Basin among other vast formations inside our borders. Bloomberg notes there’s between 60 and 70 billion barrels of recoverable oil in the Permian alone.
Second, new tech innovations mean we can now tap deep crude deposits we could never reach before. The shale oil boom has made the U.S. an energy powerhouse. Again.
This was, of course, a huge story several years ago. But it fell out of the news just when things started to get interesting.
Today, the U.S. stands on the verge of a new era of energy independence. With that comes major leverage geopolitically.
Speaking to CNNMoney, former energy under official under George W. Bush Bob McNally stated: “It’s a definite milestone. Nobody saw this coming 10 years ago.”
Take note OPEC. The times are changing.
Greater energy independence is a net benefit for U.S. economy, workers, families, and our geopolitical interests from every possible angle.
Making today a day to celebrate.
Now, turning to the markets this morning…
Market Rundown for Fri., August 24
S&P 500 futures are up 6.75 at 2,864.
Oil’s up slightly to $68.60.
Gold’s up $5.50 at $1,199.
Bitcoin goes for $6,519 this morning, according to CoinDesk.
We’ll talk again on Monday, kicking off the week with a look at your recent mail. We’ve received several letters recently on the legality and morality of marijuana as medicine.
Have a great weekend.
For the Rundown,