While lunching recently with an old boyfriend (one of the few
liberals with whom I can engage in friendly political sparring), we were discussing
the ailing economy (on which we both agreed) and debating the merits of more
stimulus for the economy (on which we did not).
He made, however, what I thought was a poignant observation, that our
country needs another “new thing” to get things moving again. While he and I
are destined to stay on opposite sides of the aisle, his comment resonated.
Harking back through our economic history, America has
experienced booms and busts throughout.
The railroads, the roaring twenties, the influx of returning World War
II veterans and the demand for housing, products and services, the oil boom,
the dot.com rush, and the credit-fueled real estate market are but a few
examples. Each of these made millionaires out of mere minions (as well as
fattened corporate coffers). And each
was followed by a severe bust. We still are
suffering from the last one, leaving an overhang that we cannot seem to
shake.
What does this have to do with finance you may ask (since
this blog deals with financial issues)? If we can unharness the gas companies and let them drill safely, it
could be as meaningful as the gold rush.
Being the low-cost producer in any business is an important
advantage. The US has the potential to
produce and export natural gas, with untold benefits for the global
marketplace, and potentially rich returns for investors. Reducing our dependence on
foreign oil is one natural outgrowth.
Slashing the cost of energy is another, as families struggle to pay
heating bills. Stories abound about the
economic boom in Williston, North Dakota, where jobs are plentiful and housing
scarce. There is even news for single
women: the ratio of available guys to
gals is 95:1. You go girl!
While I have no intention of moving to North Dakota, I believe,
as do others, that the burst in natural gas exploration and production could be
our “next best thing” and make the
mid-west the next emerging market (according to Jason Trennert, of Strategas
Research Partners LLP), with untold opportunities for global investment,
trading and profits.
But not everyone agrees.
Many media outlets have exposed the problems—primarily, water
contamination-- and the recently produced Gasland documentary is an example. Like
any hot debate, tempers flare on both sides.
Fracking is the enemy of all who seek pure water and cancer-free
health. At dinner parties country wide,
lively discussions ensue on the need to curb corporate excesses caused by
irresponsible fracking.
There are others, however, who have a different opinion. FrackNation, a new documentary which I just
saw in Manhattan last night, depicts a distinctively opposite view, and every
responsible American should take the time to see it. While no one can deny, with a straight face, that
corporations have not always acted responsibly when it comes to the
environment, it is also true that having their collective feet held to the fire
has forced necessary changes in regulation and responsibility, with demonstrable,
concomitant changes in behavior.
(Remember
the Hudson River, anyone?) One of the
funnier scenes in the film shows the mound of required tests and studies that
are required before a single drill bit can enter the ground.
Currently playing at The Quad Theatre on 13th
Street in Manhattan, FrackNation also airs next week on local TV. If, indeed, natural gas holds the potential for
helping us out of the economic doldrums, we all need to be informed. In
evaluating any investment, it’s imperative to calculate both the risks and
rewards. Go see FrackNation. It is rare to be given a chance to view both
sides of a hotly contested issue, and it’s a compelling antidote to the
hysteria surrounding the issue of fracking.
Funded not with corporate dollars, but with Kickstarter, a grass-roots
funding program for creative projects, the less-than-$300,000 production price tag
was financed with investments of sometimes just a dollar by those interested in
getting out their side of the story. Go
to http://fracknation.com/ for more
information and to check local TV listings.
