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January 27, 2012


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NG Follow up---

Surprise -- following the President's announcement of his approval of NG for trucks today T Boone and Navistar announced a joint venture to produce NG trucks. Navistar said they could be on the road in 6 months. There are 8.5 million diesel 18 wheelers in the US. Pickens said they could replace 10-20% in the first two years and 50% in a 4-5 year period. NG is 30% cleaner than diesel and at the moment $1.50/gallon cheaper. Asked about the auto market Boone said there are already 13M NG cars worldwide and 250,000 in the US. The problem is not the technology it is the infrastructure to get the NG distribution system in place. The system for trucks is currently underway along many highways. The US produces more NG than any country in the world. It sells for $2.50 in the US and it sells for $16 in Europe/Asia. Sooner or later we will be exporting it. (Stocks of possible interest: NAV for trucks, LNG for liquid NG exports and HGT for US natural gas production.)As you all know T Boone is a famous oil man who has been pushing the Congress, President and Auto companies to develop new energy sorces in the US.

SO WHAT ELSE--will the President do to get reelected?
Infrastructure: the move to NG will require massive pipelines so you can figure he will push the distribution system construction expansion already underway.
Keystone--I suspect the President will find a way to approve the pipeline. He will either come up with an excuse (they found a new acceptable route through Nebraska) or will use it in negotiations with Repubicans.
Syria/Iran--yesterday Hillary had little success with the UN trying to get them to help with Syria so the US or NATO are going to have to support the Arab League if they want action. Iran's ties to Syria and their continued threats to the US are going to force the President's hand soon. Iran realizes he is in a corner with the elections coming and are pushing him hard. Now threatening internal strikes on America. These threats will breathe new life into the border security issue and a premptive strike against their nuclear facilities. He is going to have to deal with this problem before the elections.


The Presidential Headhunter: I guess after the President was given the tutorial on why American manufacturing jobs would not return to the US by APPLE's management he thought he knew the reason: engineers in America are all employed. Unfortunately, that is not the correct message Apple was conveying. So, when a lady at a meeting with the President heard him say that America has a shortage of engineers she asked him why then can't her husband find a job? His response was that he would take a look at his resume and see. Now, you can figure that man will get a job from someone but what do you think the President will do with the other 15 Million resumes he receives from unemployed Americans?

The President is finally looking at Natural gas as a way to explain why we don't need the Keystone Pipeline. Now three years into his Presidency he has discovered another clean fuel to supplement wind,solar and batteries. This idea actually has been supported by T Boone Pickens and Senator Reid for many years: NG engines for trains,trucks and buses. Amazing how an election year changes a man's view of things. However, we will have to build a NG infrastructure to deliver the NG to stations for fill ups. There you go: pipeline work! And, why not use it for electric plants as well. I'm not a stock analyst but I would say a little NG stock in your 401k would be a good bet. By the way Obama announced the new initiative in Nevada.

IRAN: Again yesterday, India joined China in restating that they will not boycott Iran's oil. They represent 30+ % of IRAN'S exports. Always good to see our trading partners taking our jobs and ignoring our requests for help.


ECONOMY: The economic news continues to weaken as consumer savings increases once again. Economists calling for 1.5-2% growth in Q1. Next comes the numbers for unemployment for January which will begin to show the seasonal temporary workforce changes. The job creation level seems to be stuck at around 175,000 not enough to get unemployment down much in 2012.

ENERGY: Pickens says that wind and solar will not be competitive until NG gets to the $6 range. He says diesel trucks will begin moving to NG engines soon and expects an engine company to announce that soon. Pickens says if America lets the Keystone Pipeline go then Canada will build it to the West coast and the oil will go to China--no reversal once that happens. Pickens says there is more oil in the Canadian region than in Saudi Arabia. I expect the President to reverse his decision if he is behind in the polls by summer or use it as a bargaining chip in Congressional fight over payroll tax.

SYRIA: More slaughter in Syria making the President look inconsistent after backing Egypt and Libya revolts. Now over 5000 killed. About the same as the US has lost soldiers in ten years of fighting.

IRAN: Iran wants talks. More stalling tactics likely designed to give the EU an out on enforcement of sanctions. Key report will be results of the inspectors.

INDIA,CHINA,RUSSIA: no support of the oil boycott. India and China are on the rise and their desperate need for resources to feed their people and drive their economy are making them far from cooperative.

IRAQ: More killings. Biden sent to talk. Iraq upset over drone flights.

CATHOLIC CHURCH: The Pope issues tough stance against Obama administration's inclusion of birth control surgery, contraceptives and abortions in their healthcare plan.

RESIGNATIONS: Geithner and Clinton not serving second term.

ELECTION: Romney looks to be regaining control of the process.

SOTU WOULDN'T DARE; ROMNEY DID:For years evryone addressed the primary 'driver' of illegal immigration was the 'Employer Magnet'. The repulsive force of Northern Mexico (the Cartels)is seldomly addressed. Romney spoke about bringing the full force of the Presidency to bear on Drug Sellers and Buyers equally. Both would be prosecuted on grounds of conspiracy & murder. Extradition of purchasers of Mexican Drugs could be considered.
BRAVO Mitt Romney. Showing his ability to seek 'CORE' Solutions.

I think you are starting to "get it".

'O' WAS ASKED TO SPEAK YESTERDAY IN ATLANTA; Unfortunately, he was a 'NO SHOW'. The Judge was requesting proof of qualifications; in order to be entered into the Georgia Election. The Administration claimed that the previous Presidential Election qualified their Candidate. The Judge thought 'contrary' and that the Election only indicted the Congressional delegation for improperly vetting a Presidential Candidate. Ruling to follow. (serious evidence behind this)
One judge in the entire country standing up for the Law. Isn't it a proud day ? May it be; that the 'South' save the 'Union' ?

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