Tags: Elliott Gue | Oil | Production | Growth

Energy Adviser Gue: US Seeing Benefits From Oil Production Growth

By    |   Monday, 04 Mar 2013 01:50 PM

The United States is experiencing tremendous economic benefits from the growth in oil production and has the potential to become increasing energy independent, said Elliott Gue, editor of Energy & Income Advisor.

“U.S. oil production has grown each of the past three years,” Gue told Newsmax TV in an exclusive interview.

“That’s the first time that’s happened since the 1970s. U.S. oil production peaked in 1971, 1972, around 11 million barrels a day and it has been pretty much in continuous decline ever since, until these past three years.”

Watch our exclusive video. Story continues below.



Editor's Note: A full, unedited version of this interview is available exclusively to Financial Braintrust Alliance subscribers. Visit www.fbtalliance.com for more information and to sign up.

Gue cited the main drivers behind the uptick as the development and commercialization of technologies such as fracking and horizontal drilling, allowing for the development of massive fields like the Bakken shale of North Dakota and the Eagle Ford shale in Texas.

Gue added that last year global oil supply grew by about 850,000 barrels a day with worldwide demand increasing 800,000 barrels daily. The U.S. produces “around 7 to 7.5 million barrels of oil a day” and consumes 19 million barrels. Global consumption is around 90 million barrels with “literally 2 to 3 million barrels a day of spare capacity … most of which is in Saudi Arabia.”

Editor’s Note: Put the World’s Top Financial Minds To Work For You

“The U.S. is really one of the world’s only sources of growing supply,” Gue said. “I do see a potential for the U.S. to become increasingly energy independent, and it’s not just oil.”

He said the U.S. is the world’s largest producer of natural gas and that the world’s largest economy has “too much gas.” He cited prices that are about one-third the level in Europe or Asia.

“We are already pretty much energy independent when it comes to natural gas, and there are other energy commodities as well, like coal, which we have an abundance,” he said. “We have some of the world’s largest reserves and largest production of coal.”

Gue also cited problems with green energy, pointing to Germany and what he described as a “feed-in” tariff.

“Just a few years ago, the leading installer of wind turbines and solar panels was Germany,” he said. “The reason that they were doing that is because they offer a very generous feed-in tariff. If you own a solar panel and you feed power onto the grid, the utility has to buy that power and they have to pay you way above the market price for that power.”

The subsidy is good for 20 years, he said.

“If it weren’t for that subsidy, the entire construction of these projects would totally go away,” he said. “The utilities were essentially passing on the cost of these subsidies to the consumers. And that’s why in Germany they pay about four or five times as much for electricity as we do in the U.S.”

He added that Germany has the second-highest power prices in Europe. Denmark has the highest cost. It has been more aggressive in subsidizing alternative and green energy.

“None of this would get built if it weren’t for the subsidies, and when Germany saw how much this was costing, the government began cutting back on those subsidies,” he said. “When you have people paying too much for power and you have an economy which is in recession or not growing very fast, people start to get angry.

“I remember when [President Barack] Obama was elected for his first term. There were a lot of people out there saying these companies are going to do well because Obama is going to promote the use of green energy, but the reality was actually just the opposite.”

Editor’s Note: Put the World’s Top Financial Minds To Work For You

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
Markets
The United States is experiencing tremendous economic benefits from the growth in oil production and has the potential to become increasing energy independent, said Elliott Gue, editor of Energy & Income Advisor.
Elliott Gue,Oil,Production,Growth
648
2013-50-04
Monday, 04 Mar 2013 01:50 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved