2010 Archives

Energy and Agriculture Sectors Excel and Should Remain Strong for the Foreseeable Future


The following by SMU Adjunct Law Professor James Dancy has appeared in numerous business publications, including The Sacramento Business Journal on November 9, 2010.

"This is one of the most exciting and potentially profitable times for energy and agricultural sector investors," says Joseph R. Dancy, Adjunct Professor of Law at Southern Methodist University and manager of the LSGI Venture Fund L.P.

Dancy noted in a recent interview with James Puplava of the Financial Sense Newshour that energy companies are perfecting enhanced recovery technologies and the ability to drill horizontal wells into shale formations that produce crude oil, generating impressive returns and making it an "exciting and potentially profitable time to be in the energy sector."

Due to commodity pricing Dancy notes the economics of developing crude oil fields is much more attractive than natural gas prospects in the short term, but longer term natural gas reserves will be an attractive and valuable asset. The new technology and shale plays "are a game changer" according to Dancy.  He also notes merger, acquisition and transactional activity in the sector are approaching record levels.

Dancy also claims that biofuels will utilize 37% of the U.S. corn crop this year, making it a "banner year for farming". Biofuel demand has boosted corn prices, and economic surveys indicate farm equipment sales are increasing at an impressive pace while farmland values are rising as the farm economy expands. . .

Read the full story.

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