America’s Energy Boom: The Good, the Bad, and the Ugly

America’s energy boom is a game changer for our nation and companies such as Chesapeake Energy and Kodiak Oil & Gas. That said, the boom is far from perfect.

Apr 25, 2014 at 1:07PM
 Drilling Mast With Flag

Photo credit: Chesapeake Energy 

America's energy production and reserves are soaring and emissions are falling. The boom is fueling tremendous job creation as hundreds of billions of dollars are spent to keep production growing and to use cheaper American energy in manufacturing. This is fueling additional tax revenue for governments, while making millions of Americans rich and saving the rest of us a lot of money on our energy bills.

Clearly, the energy boom is doing a lot of good. However, not every part of the boom is positive. Produced water from fracking is thought to cause earthquakes, while overall water usage for fracking is impacting already parched areas of the country.

Worse yet, there's an ugly side of the boom. Chesapeake Energy (NYSE:CHK), for example, has been accused of collusion to keep lease prices down in Michigan by avoiding price competition with another oil and gas competitor. The company is also accused of shortchanging landowners on oil and gas royalties in Pennsylvania. On top of that, companies such as Kodiak Oil & Gas (NYSE:KOG) have incinerated hundreds of millions of dollars' worth of natural gas in North Dakota. Lack of pipeline infrastructure leaves these companies with no choice but to flare excess gas instead of venting it into the atmosphere, which would be much worse for the environment.

The industry and the nation undoubtedly have a lot of work left to make America's energy boom even better. The problem is that both sides of the debate tend to refuse to look at each other's considerations, which is hindering real progress. I created the slide show below to help put the boom into better total perspective. It shows all the good the industry is doing while also highlighting some areas of weakness that need to be addressed. 

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Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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