Last week, for the 2nd week in a row, the US exported over 1 million barrels of oil a day. That is more than double the 500,000 we were sending out, according to data from Energy Information Administration. This may seem to pale in comparison to some of OPEC’s members such as Saudi Arabia, which exports over 10 million barrels a day, but it marks a new world order for American security.
What does this mean for America? Energy independence is a huge step towards true security. Without oil, our economy shuts down. We saw this in 1973 when OPEC first put its stranglehold on us. Those days are over now and the U.S. now exports more than many OPEC countries like Libya, Algeria, Ecuador and Qatar.
No longer will we be at the whim of another country.
With the price of oil back above $50 per barrel, many wells are profitable to pump again, especially shale. Just last week, U.S. oil producers produced 9 million barrels, the most since April 2016.
This is a win for all Americans. Cheaper fuel costs keep manufacturing costs low and families’ driving costs down, putting money directly into consumers’ pockets. All of this will help keep inflation in check.
The part that makes me giddy is the security aspect. If we are no longer desperate for oil and reliant on others, we may not have to send troops to the middle east to fight for it any longer. Combining that with less profit earned by the terrorist exporting nations, and you have a stronger U.S. It’s a good time to be bullish on America!
When building your retirement master plan and managing your portfolio, be sure you are set up properly to get the best returns…but with the least risk possible. Or what I like to call “invest for need, not for greed”™. It’s what we try to do for our clients every day.
Now is the time to review, not only your portfolio, but your overall master plan. Things have changed and it’s time to Trump up your portfolio!
As always, feel free to contact me with any comments or questions.