Bullish On America -- May 10, 2017

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I could not possibly be in a better mood from an investing point of view.

The tea leaves suggest oil and oil service companies are going to do just fine. Remember: oil is boom and bust.

Some data points:

• ND rig count at 51
• flash crash for crude oil brought oil down to $43 the other night; today, back to $47; the actual number is not important; the trend is important
• US CAPEX for on-shore drilling is running 10x greater than the rest of the world: lots of jobs
• Nasdaq keeps hitting new highs; Dow 30 not far behind
• EOG cash costs coming in at $13 for a bbl of oil
• we have a POTUS who doesn't take time to draw lines in the sand; he's make a decision and moves on
• drawdown of crude oil most recent reporting period: huge; 6 million bopd; at this rate, only 28 weeks to get to "hysterical" levels
• summer will soon be here: driving season; Saudi needs to keep more of its oil at home
• EIA's short-term outlook looks better and better each month
• a CLR well with an IP of "754" goes on to produce a half million bbls; only eight years into production; will produce for 30+ years;
• OPEC will extend cuts; OPEC running out of options
• EURs for Bakken wells now tracking one million boe type curves
• one can buy Bakken minerals for as little as $1 / acre vs $40,000 / acre in the Permian
• Texas is in hyperdrive