Denny Wright's  Instablog

Denny Wright
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I believe that United States energy independence is a myth. While it is clear that shale oil and gas production has rapidly expanded, so has the cost of production. I am a contrarian in search of beaten down stocks and sectors. In particular, I am extremely interested in the energy and precious... More
  • Market Ignores Middle East 0 comments
    Feb 9, 2013 10:13 AM | about stocks: ENY

    As the Dow continues its liquidity fueled move higher, the Middle East continues to boil. Syria's daily hell continues, Iraq bombings between Sunnis and Shiites are a daily occurrence, Iran's enrichment moves forward, and Egypt nears chaos. Why does this matter? if one believes the ceaseless propaganda about U.S. energy independence then perhaps, the Middle East can be ignored. But considering the continued pathetic oil production of majors Exxon, Chevron, Shell, and BP, despite climbing Brent and WTI prices, ignoring a possible Shiite-Sunni violence contagion is foolish. As CNBC and other major US media focus attention on Apple, Blackberry, Facebook, and a 16 year old actress/daytrader, smart investors should at least consider how vulnerable the US is to violence in the Middle East. Despite impending budget cuts, Mr. Panetta may want to re-consider pulling that aircraft carrier away from the Strait of Hormuz. Too bad stealth fighters and naval ships can't be created with the same ease that the Fed prints money.

    With Canadian energy firms still in the doldrums because of Cushing stockpiles and low natural gas prices, ENY offers a broad basket of producers in one of the few energy producing countries that has a stable government and peace.

    Stocks: ENY
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