Harnessing potential in the energy sector

The U.S. energy renaissance may have positive implications for big, established companies. Christopher Beck and Kelley McKee believe the potential benefits are not just for large-caps; they extend to small-caps as well.

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the second I think has the most potential for changes one that probably most people not think I'm nuts energy when I first got into business a 1981 oil was high back then be defined as $34 a barrel but inflation was running around 10% for years so is a very inflationary environment now we have a situation where all the sudden oil even though it is at 90 to $100 a barrel at this point in time we are finding a lot more and it's strange to think that about 6 or 7 years ago we were thought to be running out of not only oil but natural gas and then we had what are called the shell Place, Long weather is the Barnett Shale the Haynesville Shale the Fayetteville Shale and of course the one that really has most people talking to bock and Shale in North Dakota so all the sudden the United States has been a country where we have produced much more oil in the last 2 years and we had prior to 2007 that is continue to increase so it's not that we will ever be in energy independent cuz we have a long way to go but the fact that oil pressure is increased over 2 million barrels over the last couple years from what the previous level was this has major benefits to the consumer to the trade balance to the dollar all things that are positive so anything that we can do to lessen our dependence on oil and or natural gas is going to be positive for the Marcus that's going to be to be the big surprise 24th week you'll have a chance to rest are dependents on Farlow all the outcomes of that are positive so when most people think about what's happening in the US in terms of the energy Renaissance they think the most direct beneficiaries are those that are large-cap companies but there are many small-cap companies that benefit as well within the basic materials sector we've seen a lot of Specialty Chemicals companies that have been able to benefit from having a low-cost feedstock been for of natural gas in ethane as a result of the Shale formations near they be able to expand their margins because they price their product based on the value ads that the product provide not the input costs so they been able to keep a lot of the benefit on a car side a lot of small-cap and mid-cap Industrial companies are also benefiting by supplying a lot of the critical Machinery equipment and parts and services that go into the building of these large energy complexes and infrastructure that goes along with it

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