UBS Strategist: U.S. will be energy independent by 2020
Despite the Keystone XL pipeline still waiting final approval (currently in a review process that won’t be finished until after the 2014 midterm), one thing that is for certain is the North American energy renaissance is for real. Domestic production of crude oil and natural gas is on the rise, as the U.S. eyes the possibility of finally achieving energy independence.
Back in 2006, President Bush in his state of the union address presented the case that the U.S. was addicted to oil. While domestic consumption of oil is down from those days, current consumption and rising demand from abroad could keep this industry chugging along nicely in the U.S.
Count equity strategist David Lefkowitz of UBS among the believers. Lefkowitz is convinced that within the next decade, the U.S. will finally achieve energy independence. Not only that, but Lefkowitz believes a domestic surplus of natural gas will then make the U.S. a net exporter of the commodity.
The rise of North American energy production will also have positive spillover effects to other industries besides more obvious sectors like energy producers and refiners. Watch the video to see what ancillary sectors of the energy trade are high on Lefkowitz’s buying list.
More from Investing:
The 20% market correction has already started
