To: elmatador who wrote (96928 ) 12/5/2012 11:07:59 AM From: Cogito Ergo Sum 1 Recommendation Read Replies (1) | Respond to Energy independence coming for the US and now this To: Johnny Canuck who wrote (48835 ) 12/5/2012 10:18:07 AM From: Johnny Canuck Read Replies (1) of 48837 Matt Nesto When the biggest company in America is reported to be, for the first time in a generation, bringing some of its high-tech computer manufacturing back to plants on the home front from those in Asia, something has to be going on. At the very least, it merits further investigation into why Apple ( AAPL assemble iMacs in the U.S. Further supporting this on-shoring fad, Saut says, is the reality that oil prices are set to come down next year to around $65/barrel, as well as the benefit of historically low inflation and borrowing costs. The combined effect of all of this is leading to increased use of robotics and automation and he says "there's no incentive to build a plant in China, you don't need to go to the low cost labor provider." Instead he predicts businesses will look to build new plants ''where you have the lowest cost of energy, which is very likely going to be the U.S. over the next ten years, so I am all about the re-industrialization theme." XLE OIH AMLP UGA At $65 oil a lot of small cap producers become unprofitable and the resulting contraction in drilling activity would affect the oil services stocks. Given the current environment the small cap producer will see restricted access to credit and a lack of interest in secondary stock offering from traders. A lot of oil sand operation also become unprofitable. A lot of them seem to need $76 to break even according to past analyst reports that I have seen.
