T. Boone Pickens knows oil and gas. Having made his $3 billion fortune in natural gas, he’s one of the most revered experts in the industry.

Now ‘ol T. Boone has a plan. And he’s so firmly committed to it, he’s spent two years and $62 million of his vast fortune (so far) to get the word out.

Pickens wants natural gas-powered vehicles to displace foreign oil. More than 70% of the oil we import goes into cars and trucks with trucks being major oil hogs.

Why not displace that foreign oil we guzzle with a fuel that’s abundant and available right on our home turf and rid ourselves of oil dependency?

According to Pickens, every gallon of natural gas you put in a tank, you reduce foreign oil by a 1:1 ratio.

Our energy guru estimates that the US could cut oil imports in half by creating a trucking fleet with 6.5 million 18-wheelers that run on natural gas – completed within just seven years.

“We’re getting more and more dependent on the wrong people,” says Pickens.
With shale gas coming on stream, our natural gas supply is more than abundant and the plan could work. Says Pickens, “…we should turn to it [natural gas] as an immediate replacement for foreign oil in fleets and heavy duty vehicles.”

T. Boone isn’t alone. Exxon, BP and even Consol Energy, the fourth largest coal company in the world are on-board with natural gas.

I’ve been watching this energy play very closely and it’s clear that natural gas is going to be the “new oil” – or the bridge to the future as T. Boone Pickens calls it.

Ed Note: Scott S. Fraser, The Natural Contrarian is recommending Grid Petroleum to take advantage of the above opportunity he outlines. Go HERE to read about Grid. HERE to view his website

Scott Fraser’s:

10 Reasons to buy Grid Petroleum:

#1. GRPR is sitting on at least as much as 1.28 TRILLION cubic feet of natural gas worth $5 BILLION (based on $4 mcf natural gas prices) in the second largest natural gas field in the world! The success rate for drilling for gas and oil in the Jonah Field is 98%!

#2. Oil giants BP, Chevron and Encana are producing massive amounts of natural gas a stone’s throw away from GRPR prospects.

#3. T. Boone Pickens, the Texas billionaire who made a $3 billion fortune in natural gas is leading the charge to use our natural gas supplies to end our dependence on foreign oil. His plan would displace foreign oil and put natural gas powered cars and trucks on our roads.

#4. Natural gas is clean burning and has no dangerous emissions or greenhouse gases. It’s environmentally friendly in a world determined to cut greenhouse gas emissions.

Peak oil is upon us and alternative sources of energy must be sought. Natural gas fits the bill – we have it in abundance, here and now.

#5. Economies around the world are beginning to show signs of recovery. As economies bounce back the need for a reliable, accessible and plentiful energy source is even greater. As the demand grows, hub prices will naturally increase.

#6. Washington is putting $150 billion behind the move to convert from oil to natural gas as our primary source of energy for cars and trucks.

#7. OPEC nations have been lying to us for years: their biggest fields are drying up and reserve numbers are inflated. We must end our dependence on foreign oil.

#8. Alternative fuels and biofuels, solar and wind power – we’re years away from any of those alternatives coming online commercially. Natural gas is available and ready to be used now!

#9. I have the most winning track record of any investment expert in Wyoming Oil & Gas stocks. 10 out of 10 of my Wyoming picks are legendary winners! Grid Petroleum could be next . . . I am putting out my biggest buy alert ever on GRPR!

#10. Cohen Independent Research Group – Wall Street’s #1 independent research firm – just released an in-depth report and issued a “Buy” rating on GRPR.OB, making it one of the top hot stocks in the energy sector.

All Charts via Money Talks

On Major Moves, Peter Grandich has been very right see below.

U.S. Stock Market – This is as good as time as any for me to reflect back on what I’ve said since the DJIA made an all-time high in October 2007 and what has actually taken place.

Just a couple days after that all-time high, I wrote it was not only time to sell all stocks except those related to precious metals but also time to actually short the stock market. The results were the worst stock market decline in the modern era. Then, just a day before the ultimate low, I wrote I was removing my bear suit and looking for the mother of all bear market rallies. Shocking as it was, I even went so far as to recommend stocks like Microsoft and Intel (Forgive me Father, for I have sinned).

While many prominent bears have been skinned by remaining bearish or becoming bearish through this rally, I’ve thankfully refrained from putting my bear suit back on again (despite a barrage of emails and questions at conferences about how I’m going to miss the top). I’ve argued that the economic rebound (albeit not something to be proud of), should continue through at least the June/July period of 2010. While DJIA 11,000 was the upside envisioned from the dark days of early 2009, in recent times I suggested we can add several hundred points before the end of this “bear market” rally comes to “bear.”

While we’re overdue for a correction/consolidation, I believe we’re in the midst of a mini-market-melt-up whereupon professional investors who have greatly underperformed are being forced to buy in for fear of missing the big enchilada. The public in general has also missed much of this and I’m now hearing all the typical catch-phrases the public utters as it runs into a move far more closer to the end versus the beginning.

I continue to believe the overall trend remains up into summer but come late summer/early Fall, the hot topic that will grip the markets and be the likely catalyst to finally put an end to this incredible bear market rally shall be the November elections and the political polarization of America.

Chart via Money Talks

Gold – Getting past the usual games played on options expiration days like today, gold remains in the “mother” of all secular bull markets. While we know gold is the ultimate hated investment by those in and around the investment community, it has been especially frowned upon by prediction after prediction of its demise (bubble, top, etc.) only to blow through those feeble lines in the sand.

You should recall when I turned bullish on the U.S. Dollar I also said fears of gold’s demise due to a stronger U.S. Dollar were misplaced and the surprise would be how well gold does despite the fears. Well, look at it in terms of currencies outside of the U.S. Dollar and all you see are numerous record highs. You’re never ever going to get confirmation of gold’s bullishness from Wall Street or the media in general, for to believe in $2,000+ means you also don’t buy into “Happy Days Are Here Again.”

Chart via Money Talks

U.S. Dollar – The bear market rally marches on and I continue to believe the upside shall be limited to the 83-84 area basis the U.S. Dollar Index. The so-called economic rebound should underpin the dollar for the foreseeable future, but this bear market rally is just that: a countertrend rally within a long-term secular bear market.

Chart via Money Talks

U.S. Interest Rates – Despite what you may hear from Wall Street, interest rates should and would be much higher if not for one thing: the Fed. Despite the mother of all artificial markets, America shall pay for this down the road along with its incredible debt levels and no Fed finger in the dyke shall forever keep it plugged.

Chart via Money Talks

Oil and Gas – Americans may have grown accustomed to current gasoline prices but that doesn’t take away from the fact of how much it hurts the economy. $90+ oil appears in the cards and that can be an added top factor by late summer. The world is overflowing with natural gas and we could see $2 again this summer.

Chart via Money Talks

Chart via Money Talks

Model Portfolio Comments

The main purpose of my model portfolio was to provide ideas for speculative capital gains. Because there are currently some positions in the portfolio mainly as a way to play my view overall on a certain market or markets and may not offer large capital gains opportunities, I’m going to remove them from the model. You can choose to still hold them if you agree with my view on the particular market they track.

They are:

PST-NYSE

TBT-NYSE

FXC-NYSE

FXE-NYSE

CEF-NYSE

SLV-NYSE

GLD-NYSE

Nevsun Resources reported it’s well on its way to reaching commercial production by years-end. East Asia Minerals continues to show it’s a gigantic project that appears to have takeover written all over it.

Client Comments

No word yet on the closing of Crescent Resources proposed private placement. Spanish Mountain Gold is simply cheap at the moment.

Upcoming Appearances

On Major Moves, Peter Grandich has been very right and not only saved many investors fortunes, but expanded them dramatically. On November 3, 2007 at the MoneyTalks Survival Conference, Peter Grandich of the Grandich Letter warned that “an unprecedented economic tsunami will hit American beginning in 2008”.   Peter advised publicly to short the US market two days from the top in October, 2007 and stayed short until the last week of October, 2008. He began to buy stocks in March 7th,  2009. He also bought oil and oil related investments near the lows after the dive from $147.
….go to visit Peter’s Website

To HERE Peter speak and others speak on Trading go HERE:

(This article was printed in full by Dennis Gartman this morning)

According to news accounts, at about 10 p.m. CDT last Tuesday, Deepwater Horizon was stable, holding an exact position in calm, dark seas about 45 miles south of the Louisiana coastline. Water depth in the area is 5,000 feet. The vessel manifest listed 126 souls on board.

Deepwater Horizon was finishing work on an exploration well named Macondo, in an area called Mississippi Canyon Block 252. After weeks of drilling, the rig had pushed a bit down over 18,000 feet, into an oil-bearing zone. The Transocean and BP personnel were installing casing in the well. BP was going to seal things up, and then go off and figure out how to produce the oil — another step entirely in the oil biz.

The Macondo Block 252 reservoir may hold as much as 100 million barrels. That’s not as large as other recent oil strikes in the Gulf, but BP management was still pleased. Success is success — certainly in the risky, deep-water oil environment. The front office of BP Exploration was preparing a press release to announce a “commercial” oil discovery.

This kind of exploration success was par for the course for Deepwater Horizon. A year ago, the vessel set a record at another site in the Gulf, drilling a well just over 35,000 feet and discovering the 3 billion barrel Tiber deposit for BP. So Deepwater Horizon was a great rig, with a great crew and a superb record. You might even say that is was lucky.

But perhaps some things tempt the gods. Some actions may invite ill fate. Because suddenly, the wild and wasteful ocean struck with a bolt from the deep.

The Lights Went out; and Then…

…..read more HERE (scroll down below this chart)

Quotable
“The world is a tragedy to those who feel, but a comedy to those who think.” – Horace Walpole via Jack Crooks of Black Swan Capital

Investing in Fertilizer: One Good Way to Grow Your Portfolio

Fertilizer stocks are well off their highs and are down about 10% from the start of the year.

What’s happened here is that the global harvest of wheat, corn and soybeans looks like it is going to be a record. As improbable as it seemed only six months ago, this is what is happening. Plus, US corn stocks are starting to creep back up to 1980s levels.

…..read more HERE

Charts via Money Talks