America Needs An Energy Solution

The Need For More Energy, REAL FAST

The U.S. uses approximately 20 million barrels of oil a day, but only produces 6 million barrels a day. A rather large deficit. Right now, America relies on imported oil to bridge this gap. There is an increased demand to develop home grown solutions for this energy crisis.

According to the National Travel Household Survey, on average Americans drove 36.13 miles per day in 2009. The average car in America gets about 20 miles per gallon. In March 2009, gas prices on average were $2 per gallon, which means that every day individuals would be spending approximately $3.61 on fuel. This would be $25.27 per week, $110 a month, and $1,314 a year. Today’s average price per gallon in America is $3.92 per gallon. For the same daily miles traveled, Americans would be paying $7.08 per day, $49.57 a week, $215 per month, and $2,578 a year. This totals an increase of over $1,200 per year in fuel costs meaning the cost to drive has nearly doubled in the last three years. This is for certain an unsustainable price increase that the American consumer cannot continue to absorb. However, this doesn’t mean the price of oil is going to collapse, in fact, it could be just the opposite.

Catalyst For Oil To Spike In Current Trend

In our opinion, there are three major catalysts that will cause gas prices to breach American’s breaking point in the near future.

Number 1: The dollar is in a state of collapse caused by a continuous increase in the money supply by America’s central bank.

Number 2: Instability in the middle east and potential war with Iran would greatly disrupt the supply of oil.

Number 3: The supply of cheap recoverable oil is dwindling along with a major increase in demand.

The important thing to take from all of this is that there is opportunity for energy companies to supply the need for some home grown solutions to the energy battle this country will inevitably face.

A Gold Rush Style Oil Boom In Kansas

Right now in south central Kansas, 5,000 feet below the earth’s surface is Oil-Rich Mississippian Lime formation which is being currently drilled into by huge rig grinds. Many are setting out to discover oil and gas in these regions that could potentially yield some major returns for producers and the Kansas economy. Speculators are lining up at the courthouses for land that once went for $30 per acre and now are paying $3,000 per acre. Many are anticipating a major boom to spring forth and anticipates this boom to spread across the central Kansas prairie. Companies have already reaped fortunes off the Mississippian Lime Play in Oklahoma and are now following the rock formation northward into Kansas, where millions of acres of mineral rights have been leased in the past two or three years.

Historically, the mid continent region of Texas, Oklahoma, and Kansas have produced more oil than any other region in the United States and the the story in this region is yet to be done.

This will help, but the inevitable trend is already past the point of no return.

CrushTheStreet.com members should focus on not only surviving in a high energy cost environment, but thriving in it. This means adapting early with better vehicles, alternative energy uses at home, and shaping your investment portfolio to profit from the crisis.

The energy crisis is as real as it gets, this will literally effect where people live and how we get our goods delivered. Expect great changes and more importantly, plan for these big changes. As you can see from these properties in Kansas that have gone from $30 to $3,000, imagine what could happen to the companies in those areas. Or on the flip side of it, imagine the perfect little home with a 90 minute commute to the city, these type of homes could collapse and even become part of ghost towns as we see the end of suburbia.

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