Could this save the U.S. energy market?...

Could this save the U.S. energy market?... Moving closer to U.S. crude exports... Domestic oil inventories are soaring... Greenspan is bearish on oil prices... Oil exports don't mean higher gas prices... Porter's team calls two bankruptcies... Back from Aspen, on to Munich...

We could soon see a giant shift in the U.S. energy landscape...

There is more talk about the possibility of the U.S. lifting its 40-year-old crude oil export ban.

Oil executives met with officials in D.C. last week to lobby for it.

Citing a report by energy-research firm IHS, news service Reuters wrote that lifting the ban would create several hundred thousand jobs over the next 15 years. And the bulk of the jobs would be from areas outside oil production: 30% would come from the supply chain (industries supporting drilling) and 60% would come from the broader economy.

And the oil sector could use the lift...

Bloomberg reports that more than 100,000 energy jobs have been cut globally. In North America alone, the energy sector has already cut 31,000 jobs. Oil giants Shell, Halliburton, Schlumberger, Pemex, BP, and Baker Hughes have cut jobs... to name a few. And this is just the beginning.

Forbes, citing University of Houston professor Bill Gilmer, reported...

Assume an average 33% reduction in oil company capital spending this year, followed by 5% growth in 2016. That, figures Gilmer, would result in the loss of 75,000 Houston jobs. This would be an enormous shock considering that Houston has added 100,000 new jobs every year since 2011.

Imagine how bleak things would get if crude prices hit $30 a barrel, as Porter is predicting. (It's trading around $45 today.)

Daniel Yergin, the author of the Pulitzer Prize-winning oil chronicle, The Prize, is the vice chairman of IHS. When discussing the prospects of lifting the ban, he said, "It's not just an oil patch story, it's a U.S. story."

As we've discussed in previous Digests, oil prices are plunging as supply trounces demand. Output is still soaring, even as prices fall. And today, more and more folks support lifting the ban because the U.S. is running out of storage.

Former Federal Reserve Chairman Alan Greenspan recently told Bloomberg that we're going to run out of storage in Cushing – the major U.S. oil-storage facility in Oklahoma – by next month...

Until we find a way to get out of this dilemma, prices will continue to ease because there's no place for that oil to go except into the markets.

Inventories at Cushing have tripled since September. And production remains high, despite a massive drop in oil prices since their June peak. The U.S. Energy Information Administration's (EIA) latest monthly production numbers are from December. Crude oil production that month was the highest in the U.S. since 1970. The EIA also provides weekly estimates. In the week ended March 13, the EIA estimates that daily crude oil production exceeded 9.4 million barrels... the highest daily production reported since at least 1983 (when the EIA began collecting the data).

Not everyone supports the ban. Some dissenters believe that exporting U.S. oil will lead to higher prices at the pump for Americans. But as Stansberry Resource Report editor Matt Badiali has written in the past, that's false.

Unlike crude oil, U.S. gasoline is part of a globally traded gasoline market. That means U.S. prices at the pump reflect global prices. The current policy discourages additional crude oil supplies from being brought to the market... which actually makes gasoline prices higher than they otherwise would be.

If export restrictions were removed, the additional crude oil supply would lower gasoline prices by an annual average of $0.08 per gallon. The combined savings for U.S. motorists from 2016 to 2030 would translate to $265 billion.

But one thing is certain: If we do run out of storage, oil prices will head lower.

Porter discussed this scenario in the March 13 Digest. He noted that, while the oil rig count is falling, it will be a while before we actually see production fall...

The second chart shows you how many oil rigs are actively drilling for new supplies (the "rig count") and the most current oil production figures. What you see is we're producing more and more oil even though drilling is shutting down. That's because most of the costs in oil production are upfront. There's almost no incentive for producers to shut in wells that are already flowing. That's why it's going to take something around six months or maybe a year before we begin to see oil production falling. And in the meantime, prices could truly crash... because we're running out of storage. The Peak Oil guys were right, in a way. They just left out a crucial word. They said the world was running out of oil. But we aren't facing "peak oil." The world is facing "peak oil storage." Analysts in New York are predicting that the U.S. will be out of oil storage by June. And that's when things could get really, really ugly.

In that Digest, Porter said this issue would disappear "almost overnight" if President Obama allowed for U.S. crude exports. We're seeing steps in that direction... But for now, it's still too early to go "bargain shopping" in the energy sector.

On that topic, this week, we saw the bankruptcy of energy firm Quicksilver Resources. As CEO Glenn Darden said in a statement...

Quicksilver's strategic marketing process has not produced viable options for asset sales or other alternatives to fully address the company's liquidity and capital structure issues. We believe that Chapter 11 provides the flexibility to accomplish an effective restructuring of Quicksilver for its stakeholders.

The company's issues started last September when it tried to sell off assets but couldn't find buyers. Shares now trade for $0.03. Quicksilver's market cap has shrunk from $2.3 billion to $4.5 million.

On March 9, BPZ Resources also filed for bankruptcy. The company missed a $60 million interest payment. CEO Manolo Zuniga explained...

Our efforts to negotiate additional financing to fund business activities and pursue identified strategic alternatives were further impeded when oil prices plummeted and production growth faltered, creating additional obstacles to our restructuring efforts.

Stansberry's Investment Advisory lifetime subscribers shouldn't be surprised. In their supplementary Stansberry Data service, the monthly Global Oil Value Monitor identifies energy companies with the highest-quality assets when they're selling cheap. And in the March 3 update, they said Quicksilver and BPZ were both on the verge of bankruptcy...

If you look at the top of our monitor, we already have a couple of firms in bankruptcy. Several others could soon follow suit, including the top two companies, Quicksilver (KWKA) and BPZ Resources (BPZ). You will notice their enterprise values [market cap plus debt minus cash] are showing negative values this month because the market has clobbered their equity and bond prices. We adjust enterprise values based on the current market values of the bonds. When cash is greater than the combined current market value of the debt and equity, our monitor returns a negative valuation.

Kudos to the Stansberry's Investment Advisory research team for a great call.

For the rest of today's Digest, we're handing things over to Gray Zurbruegg, membership director for The Atlas 400...

A snow crystal begins to form when water vapor freezes directly onto a pollen or dust particle inside of a cloud.

As the crystal falls to the ground, additional water vapor freezes onto the primary particle... building new crystals... growing the formation.

Temperature and humidity directly influence the shape of this crystalline structure... For example, we see long, thin crystals at 25 degrees Fahrenheit and flat crystals at 5 degrees Fahrenheit.

However, the atmosphere is a volatile place. And these oddly shaped crystals oscillate as they blow around. All six sides of a snow crystal could experience different formative conditions. No two snow crystals are ever the same.

By the time the snow crystal falls onto your sleeve – or for those in the North, accumulates into feet of snow in your backyard – it's rich in history.

The final shape tells a detailed story about the crystal's path. The edges show where it grew last. As you examine it, you can see where it came from.

If you're familiar with my other stories, you may think this is a bit hokey. But stick with me...

The Atlas 400 is comprised of about 100 individuals from around the world. They're some of the most successful and intellectually stimulating folks I've ever come into contact with.

For these individuals to have reached this level of achievement in their life, two major personality traits had to be present: self-reliance and a strong work ethic.

Our members come from a wide variety of backgrounds and life experiences. American, Panamanian, Swiss... They're writers, talent agents, and hedge-fund managers. Some were collegiate athletes, others were chess masters.

Each member's path has been shaped by their experiences. Their success is largely due to how they've reacted to life's various challenges. And while some may have shared a similar experience or background, no two members are the same.

This diversity is what really makes The Atlas 400 special... It's an accumulation of people of like mind and interest who gather to share experiences and learn from one another. There's an uncanny wealth of knowledge and experience. Hopefully you're beginning to understand my analogy...

Our recent trip to Aspen, Colorado was filled with both The Atlas 400 members and snow.

This was the club's first ski trip. Aspen was the perfect venue.

In typical Atlas fashion, we stayed at a fantastic hotel and dined at the best restaurants in town. However, that wasn't what made our trip special.

There were only 10 of us. It was also one of our smallest trips...

The group was an amalgamation of folks who, in all likelihood, would never meet in the regular course of life or business. But the group's intimate size gave members an opportunity to become close friends by the end of our stay. I'm fortunate to see this over and over on our adventures together.

To watch a group of 10 – many of whom had never met before – grow close and create lasting, real relationships is something special... It's the actualization of one The Atlas 400's most fundamental goals.

It's also our goal to maximize your personal time. The Atlas 400 is a vehicle through which we facilitate shared experiences, personal growth, and help to create an unparalleled network of highly successful people.

Speaking of highly successful people... One of the members in Aspen brought his jet.

At the end of our trip, the town was bombarded by two feet of snow. All flights were canceled for two days. The owner of the jet gave a fellow member a lift to another airport so he could catch his connecting flight and make an important business meeting. Membership in the club certainly has its benefits.

But this act was a better example of the club's collective mindset, which is, "how do I add value to the group?"

It's not that this member owns a plane, but rather it was his willingness to lend a hand to a fellow member in need that exemplifies the mindset of The Atlas 400 members.

The club's goal is simple: We want members who are positive... who see the value of building great relationships with other extraordinary people... and who are willing to help us make it one of the world's best and most exclusive groups.

However, if you're struggling to make ends meet, The Atlas 400 probably isn't for you. There's a $25,000 initiation fee to join... and our excursions aren't cheap. But if you're at a point in your life where meaning is paramount and you're in a position to enjoy the fruits of your labor, I urge you to apply.

Our 2015 calendar is full of trips. There's still time to join us at our annual meeting in New York City in May... or trek through the forests of British Columbia... or race Porsches and BMWs during Oktoberfest in Germany.

We have an application process to ensure you're a good fit for the club (and vice versa). If you'd like to learn more about this opportunity, click here. We look forward to hearing from you... and to the adventures we'll hopefully share in the future.

New 52-week highs (as of 3/19/15): AllianceBernstein (AB), ProShares Ultra Nasdaq Biotech Fund (BIB), Cempra (CEMP), Esperion Therapeutics (ESPR), Fidelity Select Medical Equipment & Systems Fund (FSMEX), iShares Core S&P 500 Small-Cap Fund (IJR), Eli Lilly (LLY), Prestige Brands Holdings (PBH), ProShares Ultra Health Care Fund (RXL), and Walgreens (WBA).

In the mailbag, a lifetime subscriber praises us for the knowledge he has learned through us along the way. Send your notes – good or bad – to feedback@stansberryresearch.com.

"I really want to thank all of you at Stansberry Research. Why would that be? Simple... it starts with Porter's saying, 'if our roles were reversed,' and putting it in practice all the way across the business. I want to thank Jeff Clark for teaching me what to look for in the technical graphs. I knew the buck was going to head down the day before he wrote it. Thanks man... I grovel at your feet for being the king of technical.

"You all have taught me not to freak about the oil thing. Realizing that oil is something that will always be in demand and that the royalties and all of the others are going to continue to pay me money regardless of the price of the stock. And when I look at my portfolio I see the pay days. You all have taught me well. What I pay for PWA is so far beyond a great value I can't really express my thanks adequately." – Paid-up subscriber Jeff Spranger

Goldsmith comment: Thanks for your faith in our business and your willingness to sign up for a lifetime subscription with us, Jeff. We're glad you're taking our writing to heart. We hope we can continue sharing lessons and making you big profits for years to come.

Regards,

Sean Goldsmith

March 20, 2015