Seminal -
Highly influential in an original way, constituting or providing a basis for further development
A Seminal Idea:
Of, relating to, or having the power to originate, be creative or germinate a seed idea
Yesterday, on a day in which we proponed what turned out to be a
Manifest Destiny report of sorts, Manifest Destiny being a phrase that expressed the belief that the
United States had a mission to expand west, spreading its form of democracy and freedom. Advocates of Manifest Destiny, believed that expansion was not only good, but that it was obvious ("manifest") and inevitable ("destiny").
Another Mammoth Discovery in the Gulf of Mexico Longer term readers may recall how when we first floated the idea that there might be a massive new find in the Mexican sector of the Mexican Gulf several years ago, one of the World's legendary investors and a reader of this report immediately shot back and told us to stop fantasizing about phantom giant discoveries, that were unlikely to happen any time soon... But, in reality, what our intelligence had in fact uncovered, was the earliest heresay that would lead to the World's largest oil discovery in decades: A 10 Billion Barrel monster, which was officially declared to the World by Mexican President Vicente Fox a short time later... And in describing this seminal event in the life of Mexico, we went on to explain its potential significance in the larger arena of oil exploration and development in the Gulf of Mexico, noting already what many people did not actually know or appreciate ie: That being, that the Cantarell Field is actually one of the World's largest single fields, if not the largest. And, to us, the fact that an equal or larger size field had just been discovered on its doorstep was not only highly significant, it was statistically important, because as the saying goes, you find elephants in elephant country and after yesterday's stunning discovery in the American sector of the Gulf, the statistical likelihood of massive new finds being uncovered between Mexico's prolific zone and the new and perhaps equally prolific or even greater American zone, would imply that between these two, may lie oil riches beyond imagination, that could in due time return the United States to the greatness of its former time, as one of the great Oil producers of this World and self sufficient in Energy... And before we get another email to tell us to quit fantasizing about things that can't happen and never will, that fact is they can and they will. All it takes is leadership and absolute commitment combined with good ol American ingenuity.
Gulf Oil Discoveries Could Emulate North Sea 30 Years Ago In just the same miraculous way, energy self-sufficiency became the UK's domain near 30 years ago, we proposed the same could happen: Energy self sufficiency for the United States is something we have been pounding the table about for years now, because we believe that in a post 911 World, it is a national tragedy that we are not self-sufficient in Energy already or at least well on the way to being so. We have on occasion in these pages dreamed of that day, because achieving that goal could potentially transform the US Economy overnight, from a debtor nation with a monumental trade deficit, to something a lot closer to a trade surplus and recycling those saved dollars back into the economy would potentially create the kind of growth, healthcare, education and infrastructure improvements that would know no bounds and in a curious twist of fate, this very Labor Day Monday, President George W Bush alluded to the same, if we did not have to import Oil... Yesterday's huge discovery along with Mexico's and Canada's new found bonanza, already makes the Union of NAFTA, soon self-sufficient.
Energy Self Sufficiency Now Appears More Attainable With Time That fact is Energy self-sufficiency is not only within our capabilities, but the possibilities have been staring at us in the face for a number of years now as the realization by some that being the Saudi Arabia of coal in the World means we have something approaching 400 years of energy supplies ahead of us and that using technologies from early in the last Century of even pre-World War II vintage, it is technically and feasibly possible to convert coal into a form of Ultra Clean Fuel that is much better and way cleaner than gasoline and may even be more inert and a lot safer to handle... So, what are we waiting for? The leadership and will to make it happen, in the same way as we went to the moon or created the Manhattan project... But now, we need a dual Manhattan project going forward, with total Energy self sufficiency as the ultimate goal, but achieved through not only the kind of stunning new discoveries as yesterday, but development of Ultra Clean Fuels that will power a new generation of cars that like the Ford Reflex we featured yesterday, can achieve 65 Miles per Gallon or more, because the very simplest of arithmetic, dictates that if we can effectively double automotive fuel efficiency and reduce energy demand by half, we are practically speaking, already close to self sufficiency and we soon would be, if other ground-breaking technologies are thrown into the mix...
Drastic Improvements in Energy Efficiency: Can Do and Must Do Objectives And again, in a way, another seminal event may have occurred yesterday in the history of the United States, wherein Ford Motor Company announced the appointment of a new CEO that perhaps can steer Ford toward the vision we highlighted yesterday, that could see Ford as the new trend-setter of energy efficiency in automotive technology and create a whole new competition to that end, now that they may have hired the perfect CEO in Alan Mulally, with the experience, vision and ability to not only make it happen, but wow us in the process, just as his innovative spirit, leadership and vision helped to transform Boeing and restore it to Global dominance as an aerospace company.
Gulf Oil Discoveries Could Substantially Boost US Reserves and Output for Decades In essence, we have the will to make anything possible if we try hard enough and the debate about Oil just got a lot more interesting, as to whether Global Oil production potential has peaked or not. But one things for sure, yesterday was a profound day for big oil, where oil could do no wrong and no doubt hawkish oil proponents were high-fiving in the aisles of congress and it may be a wake up call to get on with it and start seriously drilling offshore with an intensity as never before. From a national security standpoint, it is not only essential but with the growing risk of being ever dependent on the Middle East or Russia, this is an unacceptable place to be especially when there's no need to be there, other than by being the victim of our own limitations. From our perspective, the real potential hidden riches in oil in the US offshore and land based territories may lie within new zones at extreme depths that have yet to be tapped. If you look at a map, in just the same way that
the rings of fire join earthquake and volcanic zones in various parts of the World: To us the appearance of a massive Oil Crescent stretching from Venezuela at the Southern Extremity of the Gulf coast up through the Central Gulf and Central US to California. And yes the new sweet spot of that Crescent, might just lie between the Bay of Campeche in the Southern part of Mexico's prolific oil producing region, up towards the Alabama, Mississippi, Louisiana and Texas Coasts, and this area should be drilled like a pincushion forthwith with intensity. Could as many as Ten 10 Billion Barrel discoveries be made in the Mexican Gulf over the next few years? If prolific enough never say never.
Market Commentary and Outlook Several weeks ago, we outlined the case wherein Metals could go parabolic and thus far, that idea is starting to play out in real time, also with some growing intensity although it may take some time for these developments to really gather the kind of traction we are expecting, so far the action has been encouraging. However the stockmarket is becoming a little stretched to the upside and is already weakening as we suspected it might in our: A Chill Wind Down Wall St Friday, so we may succumb to some kind of correction. This week could decide... Trade Well From the Desk of Savant
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