June 20, 2014

Are we really in the midst of an energy revolution? Could the U.S become energy independent? What are the repercussions for the economy, investors and even national security? Financial Thought Leader and energy guru Tom Petrie uses his 40 years of experience as an energy analyst, investment banker and strategist to provide answers in this WEALTHTRACK exclusive.

WEALTHTRACK Episode #1052; Originally Broadcast on June 20, 2014

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Chairman, Petrie Partners
Consuelo Mack

With Iraq, the second largest oil producer in OPEC falling apart, the question of U.S. energy security and independence is taking on more urgency. 

This week we are focusing on the much heralded energy revolution and exploring the tantalizing possibility that the U.S. could become energy independent, with all of the enormous economic and national security implications that would entail.

Until the recent shale oil technology revolution the common wisdom was that U.S. oil production had peaked in the late 1960’s/early 1970’s.

Called Hubbert’s Peak after M. King Hubbert, the oil geologist who predicted it in 1956, oil production, which had been increasing since the 1900’s was expected to peak as known oil reserves were depleted. 

Before the last decade, Hubbert’s Peak was accepted as a fact of life by the oil and gas industry. 

Then came a game-changing technology called hydraulic fracturing or fracking, a process that injects fluids, mostly water, under high pressure into horizontally drilled oil or gas wells. 

That fracking process forces apart or fractures tight rock formations,  releasing previously inaccessible oil and gas reserves.     

The difference in U.S. oil and gas production from fracking is huge. 

In oil alone, the International Energy Agency predicts production  which had been declining for decades will soar, especially in desirable light crude from those tight rock formations.  The impact on natural gas production is also huge.  By some estimates it is expected to increase 30-40% from current levels.

According to independent research firm, Cornerstone Macro increased domestic oil and gas production has already had a dramatic impact on energy imports. Imports have fallen by almost half to the lowest level in twenty-one years.   

This week’s financial thought leader guest has spent over four decades in the oil and gas industry as an analyst, investment banker and advisor to energy companies and governments and he has just written a book about it. 

He is Tom Petrie, Chairman of Petrie Partners, a boutique  energy-focused investment banking firm. His book is Following Oil: Four Decades Of Cycle-Testing Experiences And What They Foretell About U.S. Energy Independence.  

During those forty years Tom has been Vice Chairman of Bank Of America Merrill Lynch,  co-founder and partner of another energy investment banking firm, Petrie Parkman and in his analyst days was voted number one oil analyst for eight years running in the exploration/independent sector by Institutional Investor Magazine.

He is in a perfect position to inform us about how real the energy revolution is, whether or not we can realistically expect the U.S. to be energy independent and how to make some money as investors in the process.  

We will also have an EXTRA interview with Tom on our website. While you are there check out our exclusive WEALTHTRACK WOMEN series. Our award-winning advisors will discuss the role prenups should play in financial planning. 

Have a lovely first weekend of summer and make the week ahead a profitable and a productive one! 

Best regards, 

Mathews Asia

Read Tom Petrie’s Book, “Following Oil…”

Gas Contrarian

Upstream Natural Gas (Upstream = Exploration & Production Operations)

  • Fertile Area
  • Less than 2 years away from the U.S. delivering natural gas to the global market
  • Transformational development
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WealthTrack focuses on the economy, energy and value investing with three guests exclusive to us. ISI Group’s Ed Hyman, Wall Street’s number one ranked economist for 27 years running, star value investor Chris Davis of the Davis Funds, and veteran energy hand Tom Petrie, Vice Chairman of Merrill Lynch.



This week on WealthTrack, it’s back to school with three experienced investment mentors- Random Down Wall Street’s Burton Malkiel, Harvard behavioral economist David Laibson, and energy market veteran Tom Petrie. They all have pointers for tough market tests.



We’ll talk about long-term demographic trends and the investment opportunities they are creating with demographics pioneer, Peter Francese, the founder of American Demographics magazine. Plus we’ll explore some of the deep values being created in the beaten down oil patch with veteran analyst and investor Tom Petrie, and in a WealthTrack television exclusive, delve into other sectors of the financial markets with fund manager Robert Kleinschmidt of the highly regarded Tocqueville Funds.



Three outstanding financial world figures: Bob Doll runs three large cap funds at BlackRock; John Montgomery heads up a family of funds using computer models at Bridgeway Capital; Tom Petrie, Vice Chairman of Bank of America – Merrill Lynch, is a veteran observer of the energy sector


Energy Risks And Regulation

Financial Thought Leader Tom Petrie has been in the thick of global energy developments and debate for 40 years as an analyst, investment banker and strategist. He believes the energy revolution, the enormous increase in oil and gas supplies brought about by fracking technology is for real. He also says the valid environmental concerns associated with it are recognized by regulators and the energy industry and are manageable, even when done near heavily populated areas.

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