Forget all this ‘commodity downside’ talk from Morgan Stanley and Goldman Sachs…
There’s a real, live commodity boom happening right here in the United States.
It’ll create the recession-resistant economic strength that we’ve already seen in the Bakken region.
And it’s all thanks to hydraulic fracturing.
You see, energy-producing regions have been using hydraulic fracturing for years…
Without it, states would have never reached the billions of barrels of oil and natural gas that lay beneath our feet; nor would those states have been able to tack on tens of thousands of jobs. And that was despite our depression — err, recession.
Take North Dakota’s Bakken Shale formation, for example. Thanks to fracturing, the state was able to add thousands of jobs, even as U.S. unemployment rates hovered in the double digits.
The region’s energy source will only keep growing as experts see another 10 to 20 years of drilling in the region; North Dakota’s economy will continue to be strong because of hydraulic fracturing.
And we’re about to see a similar boom in the Marcellus region, just as we forecasted last March.
The Coming Boom on the East Coast
Job growth in the Marcellus region is already exploding, thanks to the natural gas that lies beneath.
With exploration of the Marcellus formation just getting underway, some believe the shale’s development could continue for quite some time — creating high-paying jobs every step of the way.
Experts are already calling for up to 100,000 wells when all is said and done. We’ve already learned that if drilling grows at 20% a year, the region could tack on some 20,000 jobs by 2015.
And as the United States remains stuck in slow-growth mode, places like the Bakken and Pittsburgh are seeing huge amount of growth as a direct result of hydraulic fracturing.
According to local Pittsburgh press, February 2011 jobs growth showed the city had the highest jobs growth for a second straight month, adding some 23,700 jobs.
And take a look at what’s circulating in the press about the Marcellus impact on the local economy…
“Thanks to the booming gas industry in Pennsylvania’s northern tier, Pittston-based construction company Linde Corp. plans to make hundreds of new hires in the next 18 months,” according to The Times Leader. Within three years, the company could double in size to 250.
“Career options in our region are expanding mightily due to Marcellus shale development… Clearly, Marcellus shale exploration and development is an industry that is growing rapidly, so the opportunities are plentiful and enduring,” said a Tribune-Review Op-Ed.
Clearly, Marcellus shale exploration and development is an industry that is growing rapidly, so the opportunities are plentiful and enduring, another Tribune-Review piece explained.
“Researchers with the Marcellus Shale Education and Training Center estimate shale drilling will require between 3,700 and 15,000 direct jobs in central and northern Pennsylvania by 2013, and an additional 8,100 to 13,500 direct jobs in southwestern Pennsylvania by 2014. About 75 percent of the jobs will be blue-collar work,” said the director of Penn State Cooperative Extension in Clinton County, PA.
We saw the same things happening in the Bakken region before stocks exploded…
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So what does this all mean for natural gas and oil investors?
It means you either buy Marcellus-related companies — like this $11 outfit — or risk missing moves like this one…
This is going to be huge.
Of course, there are those who don’t want hydraulic fracturing in their area, due to various environmental debates, and there are political headwinds…
But there’s no denying the strong investment opportunity here.
Learn more about my top natural gas pick right here.
Stay Ahead of the Herd,
Ian L. Cooper
Editor, Wealth Daily
Investor’s Note: Don’t forget to buy into those ASCO 2011 trades we mentioned two weeks ago. Since then Dendreon (DNDN) ran from about $40 to more than $41.80… Medivation (MDVN) ran from about $20 to more than $23.30… and Exelixis (EXES) ran from about $11 to more than $12.60. And they’re all still buys.