Crazy Drake finally had a real job... But he had no idea what he was doing.

Born Edwin Laurentine Drake in 1819, he spent his first 11 working years doing nothing but odd jobs. He farmed... sold dry goods... and even worked on the Erie Canal.

It was only when his first wife, Philena, died during childbirth that Drake signed on with the New York and New Haven Railroad. But his railroad career was short lived. At age 38, Drake was diagnosed with muscular neuralgia and forced to retire.

He didn't realize it at the time, but his luck was about to change. He soon met James Townsend, a banker from New Haven, Connecticut – and a major investor in America's first oil company, Pennsylvania Rock Oil.

And their partnership would turn Drake into one of the most important people in the energy market's history...

Folks already knew that oil was useful for burning...

And they knew it soaked through the ground in certain areas, Pennsylvania included.

Townsend convinced Drake that oil was the next big thing. Drake gave the investor his last $200 to buy shares of Pennsylvania Rock Oil.

Drake's previous railway jobs had earned him free transportation for life. So Townsend sent him to Titusville, Pennsylvania, to look into oil deposits... armed with cash and letters of introduction to local businessmen.

Although he had no military experience, Townsend dubbed him "Colonel Drake" to make him sound more official.

Sure enough, Titusville was soaked with oil. Townsend secured some land and appointed Colonel Drake as president of the new Seneca Oil Company.

There was only one problem...

Drake didn't know the first thing about getting oil out of the ground...

Drake became convinced that if he stuck a cast-iron pipe deep enough, he'd be able to suck the oil to the top. He and his employee, "Uncle Billy," spent months drilling a few feet per day. And day after day, they came up dry.

Folks started to turn on Drake. Locals dropped the "Colonel" title in favor of "Crazy." Even Townsend gave up. He sent a letter telling Drake to cease operations and head home.

But before that letter reached Titusville, Crazy Drake took out a loan to keep drilling. On August 27, 1859, his pipe made it 69 feet into the ground... And the very next day, Uncle Billy found it full of oil.

The Drake Well became the first functional oil well on Earth. Soon, every whiskey barrel in Titusville was filled with the stuff. And it kicked off years of energy leadership in Pennsylvania.

In recent decades, investors have moved on to shiny new opportunities. But behind the scenes, Pennsylvania is still an important contributor to America's energy industry...

Only these days, it's mainly through natural gas.

U.S. natural gas is one of the biggest opportunities in energy today... and not only in Pennsylvania.

The investing landscape has changed since Drake struck liquid gold with his oil well. Following Russia's invasion of Ukraine in 2022, Russia cut off its natural gas pipeline to Europe.

The U.S. has been picking up the slack ever since.

U.S. natural gas exports reached all-time highs in 2023. That's also when we became the world's largest exporter.

As Europe's reliance on U.S. natural gas continues to grow, the largest producers and exporters here are ready.

Investors have an intriguing opportunity to follow in Drake's footsteps... by putting their money toward today's biggest energy commodity. Natural gas could be a standout addition to your portfolio.

Regards,

Rob Spivey
September 20, 2024