Behind the Headlines

Energy Keeps Chasing Its Tail

Stephen Leeb
Monday, August 18, 2014

This summer gas prices on the East Coast hit the highest levels in six years, according to the EIA. In fact, for only the second time ever, average U.S. gas prices topped $3.75 a gallon.

It’s jarring that this comes despite two things that seemingly should lead to lower prices: huge gains in U.S. oil production and lower demand for energy because of more energy-efficient cars, appliances, and so on. In fact, according to BP, energy supplies worldwide—encompassing everything from oil to geothermal—have been rising by 2.5 percent a year since the century’s start, around the fastest... Read more about Energy Keeps Chasing Its Tail

Appointment in Samarra

Stephen Leeb
Friday, June 20, 2014

While U.S. oil production keeps climbing, it’s clear that even if, as the fracking bulls predict, we become the world’s largest oil producer, it won’t make us energy-independent.

Fracking optimists argue we can boost production by 2 million or even 3 million barrels a day. Even if true, however—and we doubt it—we’d still be well short of what we need. That’s because, by a monster margin, we’re the world’s biggest consumers of oil, and the largest gains foreseen by the bulls wouldn’t suffice to meet our demand.

Morever, the cost of the additional barrels produced from fracking... Read more about Appointment in Samarra

Energy Weakness and How to Profit From It

by Dr. Stephen Leeb
Wednesday, May 28, 2014

Recent figures released by the International Energy Agency (IEA) show how much rides on the U.S. ability to keep oil production from North American shale deposits rising. And that’s worrisome.

While the figures didn’t suggest any immediate pressure on oil prices—good news for stocks over the near and intermediate term—they did indicate that the balance between supply and demand has tightened somewhat, as the agency revised upward their forecast of global demand for oil. Meanwhile, supplies have remained in check due to political upheaval in Libya, Nigeria, Iraq and Russia.

... Read more about Energy Weakness and How to Profit From It

High Income, Fast Growth and Green Energy

by Dr. Stephen Leeb
Friday, May 9, 2014

We recommend an exciting and brand-new type of energy play, one that offers investors not just the promise of long-term double-digit growth but high and growing levels of income as well. And no, it has nothing to do with fracking (see below). Rather, it belongs to a whole new class of companies focused on renewable energies and dedicated to providing investors with sharply growing dividends.

These companies—dubbed “yield cos”—resemble Master Limited Partnerships (MLPs) in that they entail a limited partner that distributes or sells assets to the company and a mandate to pay out the... Read more about High Income, Fast Growth and Green Energy

U.S. Economy to Be Left Behind by China's Ultra-High Voltage Shake-Up

by Stephen Leeb
Wednesday, May 7, 2014

The world will shortly reach an important milestone, if it hasn’t been already, according to the World Bank. Measured on purchasing power, the organization estimates that China will be the world’s largest economy sometime this year. It eclipses the United States. We held that title for more than 130 years. No one should be surprised. For more than 1,500 years, through the late 18th century, the Middle Kingdom was by most counts the largest economy in the world.

More interesting than the story were the reactions to it. In China, the response was that the numbers are flawed, and are... Read more about U.S. Economy to Be Left Behind by China's Ultra-High Voltage Shake-Up