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The Oil Story
No One's Telling
The American Petroleum Institute says Big Oil companies will spend $86 BILLION next year on their quest for more oil.
One simple move today could make you a fortune in 2006 – as the Big Oil spending begins...
If you want to make a fortune in 2006, there's only one thing you need to know:
Thanks to three years of soaring oil prices, Big Oil is flush with cash.
Just last quarter, Exxon made more money than any other company in the history of the world.
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'These are halcyon, once-in-a-generation days for oil producers.'
~ Fortune, June 2005 |
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And according to the American Petroleum Institute, the industry will spend nearly ALL of their earnings next year - a record $86 BILLION - searching for more oil.
What does that mean to you?
Well... if Big Oil wants more oil, there are only two ways to get it:
1. Go out and find it.
2. Buy it from someone else.
If you want to make money... just follow the money.
In this report, I'm going to show you exactly where that money is going next - so you can get there first.
Our first opportunity could easily make a fortune in 2006...
Just Follow the Money...
Right now, Big Oil money is flowing into Kazakhstan...
'Most of its fields have yet to come on stream, but when they do... they'll likely hold sway over enough oil supply to destroy OPEC.'
~ Asia Online,
December 2004 |
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If that surprises you, you're not alone.
'Fifteen years ago,' reports Asia Online, 'Kazakhstan barely mattered.'
Then the second largest oil field in the world was discovered offshore in the Caspian Sea...
And according to the State Department, there are about 178 BILLION more barrels of oil and gas waiting to be discovered there - making it the largest untapped source of energy on the planet.
Asia Online continues: 'Most of its fields are yet to come on stream, but when they do... they'll likely hold sway over enough oil supply to destroy the price setting power of OPEC.'
Nurlan Balgimbayev, the former Prime Minister, estimates that offshore oil and gas revenues alone could total $700 billion over the next 40 years.
It's no wonder then that oil companies are so eager to get their hands on Kazakhstan reserves, they're literally fighting for them.
The most recent target was PetroKazakhstan.
When the company was put up for sale in August, it sparked a bidding war between not two, but five companies: China National Petroleum Corp. (CNPC), Sinopec, Petro China, Lukoil, and India's Oil and Natural Gas Company.
And that's why you could easily
make a fortune in 2006....
You see, with oil prices hovering at all-time highs, oil companies are in a frenzy to find and sell reserves as quickly as possible.
And the easiest way to do this is to go out and buy up their smaller rivals.
In the industry it's called 'drilling for oil on Wall Street.' And logic behind this strategy is simple:
It takes years to find and develop a new oilfield. It takes just weeks to buy one.
If you get to these tiny companies first - before Big Oil - you're inline for a windfall.
Just weeks ago, Total announced it was acquiring Canadian-based Deer Creek Energy for $1.35 billion, or $25 a share.
Investors in Deer Creek walked away with a one-day return of 40%.
That's just one example (there are many more, as I'll show you).
And while 40% in one day is pretty good - I'm going to tell you about something even better...
There's just one catch: To make the BIG MONEY, you have to know which little firms make the best targets.
Luckily... that's easy to figure out...
How to Find Big Oil Targets
When deciding which tiny oil companies are ripe for the picking, buyers focus almost exclusively on one thing: How much oil that company has.
What are their proven reserves?
This is the only question that matters - because it tells you:
- How valuable the company is (the more oil they have, the more money they'll make).
- How long they're going to be in business (because once it's gone, there's nothing left to sell).
In order to draw a meaningful comparison between companies of different size, analysts use a ratio called price-to-barrels of oil (P/BOE).
Exxon's P/BOE is about $25.
That means, when you buy shares of Exxon, you're paying $25 for every barrel of oil they own.
With oil selling above $50 a barrel today... that's not a bad deal. A 50% discount is nothing to sneeze at.
But there are scores of tiny 'wildcat' oil companies that are trading on the stock market for far less - sometimes as little as $3 per barrel.
These are the prime targets for big oil companies looking to boost their reserves - because even at a premium of 100%, 200%, 300%... they're still cheap.
So what's the limit to how much big oil companies will spend to get their hands on more oil?
Let's see:
- Occidental just bought Vintage Petroleum for $9 a barrel.
- Chevron bought Unocal for $10 a barrel.
- Talisman bought Paladin for $13 a barrel.
- Pogo bought Northrock for $15 a barrel.
- And Norsk Hydro just bought Spinnaker for $40 a barrel.
CNPC eventually won the bidding war in Kazakhstan with a $4.18 billion offer - which amounted to nearly $9 per barrel of oil.
After Lukoil lost out to CNPC, they consoled themselves by snapping up another company with a heavy interest in Kazakhstan - Nelson Resources.
Lukoil paid about $9 a barrel for Nelson, as well.
The message is clear: If you're a tiny oil company, you've got a target on your back.
And based on these numbers - leaning towards the conservative side - if you find a tiny company selling for $3 a barrel... you're in line for a 200% gain when the buyout comes through...
That's exactly the kind of opportunity I want to tell you about today...
Only Two Left...
Kazakhstan is the hottest area of oil exploration today.
And right now, there are only two tiny companies left - both of them sitting on the largest untapped energy source on the planet.
One of them is valued at just $3 a barrel.
The Frenzied Pursuit of Oil Assets
'The bidding war and subsequent clashes over who will control PetroKazakhstan, a relatively small player in the oil industry, demonstrate the frenzied pursuit of global oil assets. The price CNPC agreed to pay for the Canadian company surpassed all expectations, yet several of the losing bidders said they were still trying to put together a rival bid at an even-loftier price.'
~ The Wall Street Journal,
October 2005 |
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As you can imagine... this company is tiny. It's got a market cap of less than $200 million. By comparison, Exxon's market cap is $350 BILLION.
Exxon is 2,000 times as big.
They could swallow this company whole and not even burp.
Still, this tiny company owns close to 17,000 acres of oil fields in Kazakhstan and is one of the most actively exploring U.S. independent oil companies in the region.
To date, they've drilled 36 active wells... and plan to drill 71 more in the near future.
With the company selling on the market for just $3 per BOE, it's only a matter of time (and not much time) before a bigger company comes along and... well... you make a lot of money.
Because if history is any guide, any company that's going to buy this tiny firm will be paying about $9 per barrel - conservatively.
That means you could make - minimum - 200%.
(Even if this company isn't bought out - they're still only trading for $3 per barrel of oil. Remember: oil is selling on the market right now for well over $50 a barrel.
Take a lesson from Exxon's recent financial performance. If this company keeps pumping at $3 a barrel... and selling for $50... there's nowhere for the share price to go but up - way up.)
As you can see, the potential to make an obscene amount of money - in a very short time - is quite real.
All you have to do is follow Big Oil - follow the money - wherever it goes.
For individual investors like you and me, I see THREE waves of new oil wealth on the horizon...
The first wave will come as big oil companies start buying out tiny wildcatters for their reserves - oil that's already been discovered.
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How badly do oil companies want new reserves?
Let me tell you:
Back in January 2005, Libya opened its doors to new investments - allowing big oil companies from the U.S. and Europe to bid for 15 blocks of oil-rich territory.
There were as many as 16 companies bidding for each block.
According to Craig McMahon, an analyst for oil consultant Wood Mackenzie, the bids got so high the winners will find it hard to even turn a profit on what they bought.
Occidental Petroleum, for one, will likely make just 2% of the potential revenues from the block they purchased.
Still, according to BusinessWeek, Occidental says they're 'just happy to have a stake.' |
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That's exactly the situation I've been describing to you here.
It's the easiest way for Big Oil to get the last drops of cheap oil and sell it quickly into a rising market.
I've just compiled a Special Report that will tell you exactly where I think that money's going next. It's called The First Wave of New Oil Wealth: Hunting for Oil.
This report includes the full details on the company I just mentioned - plus the full details on the only other small oil company in Kazakhstan today...
If Big Oil wants a piece of the 'largest untapped energy source on the planet,' they've got to go after one of these two companies - and both are great deals right now.
You'll learn exactly how to get in on these opportunities right away...
Plus...
Kazakhstan isn't the only 'hot zone' of oil exploration these days.
Big Oil has mobilized all over the globe – snapping up oil reserves wherever they can find a deal.
In The First Wave of New Oil Wealth: Hunting for Oil, you'll learn all about the regions that are attracting Big Oil interest... what tiny companies are found there... and which ones make the best candidates for a buyout...
I've found a total of FIVE.
If Big Oil makes a pass at these companies, you could make a fortune.
In short, I'll show you everything you need to know to take advantage of the first wave of new oil wealth.
Best of all, this report is FREE.
I'll show you how to get your copy in just a moment.
But this isn't a one-time thing - or even a five-time thing.
Each and every month for the next year, you have the opportunity to see this kind of return on your money.
Here's how...
What No One Else Will Tell You
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My name is Matt Badiali. I've been studying the oil industry for nearly 15 years - and
I've been involved in almost every aspect of geological exploration...
From my PhD work at the University of North Carolina... to my teaching positions at Duke and Florida Atlantic University... to my stints on a drill rig in Delray Beach, and as a field geologist for a variety of firms...
What it all boils down to is a lifetime of seeing how this industry really works - from every angle.
And if I learned nothing else, I learned this: The oil industry, like everything else, runs is cycles.
The technology is new... the frontiers are new... but the cycle is the same:
- Oil prices go up...
- New technologies and techniques become more affordable...
- Companies look for new sources of oil to increase profits...
- More supply is added to the market...
- Prices find a new plateau...
- Exploration stops...
- We start using up our newfound reserves...
- Supply gets tight...
- Oil prices go up...
How many times has this story been told?
'At regularly recurring intervals in the quarter of a century that I have been following the ins and outs of the oil business[,] there has always arisen the bugaboo of an approaching oil famine, with plenty of individuals ready to prove that the commercial supply of crude oil would become exhausted within a given time -- usually only a few years distant.'
~ Oil and Trade Journal,
1918 |
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- In 1855, according to University of Oklahoma geologist David Deming, oil supplies were limited to whatever oozed out of the ground. This led Kier's Rock Oil to advertise 'hurry, before this wonderful product is depleted from Nature's laboratory.'
Starting in 1859, we no longer had to wait for oil to bubble up to the surface. We found a way to drill for it.
- In 1882, the Institute of Mining Engineers estimated there were 95 million barrels of oil left - enough to last about 4 years.
Then came the discovery of the Spindletop oilfield - which flooded the U.S. markets with new oil.
- In 1914, the U.S. Bureau of Mines announced that we were down to our last 6 billion barrels of oil.
- And in 1920, the director of the U.S. Geological Service said production was about to peak.
In 1931, massive amounts of oil were discovered in East Texas.
- In 1951, the Interior Department warned that by the mid-1960s we'd be out of oil.
- In the 1970s, President Carter had this to say: 'We could use up all of the proven reserves of oil in the entire world by the end of the next decade.'
Of course, neither of those dire predictions came true.
The sidebar below tells the whole story. Despite multiple 'shortages,' and ever-increasing demand, estimates of oil reserves keep going up - not down.
"In 1971, the world's proven oil reserves were 612 billion barrels. Since then, the world has produced 767 billion barrels. We should have run out of reserves five years ago, but we didn't. In fact, today's proven reserves are 1,028 billion barrels, or 416 billion barrels more than 1971.
How could this be?
Thanks to improved exploration and development techniques, costs have declined, investments have been made and reserves have been created. The sky is not falling."
~ Forbes,
August 2004 |
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If you're a conspiracy theorist, you could call it price manipulation on the part of Big Oil - scare tactics designed to put more money in their pockets - while knowing full well there's still plenty of oil out there.
You certainly wouldn't be the first.
Personally, I don't buy it.
But in the end, it doesn't matter. How or why it happens doesn't change the fact that it happens.
And I must admit - to this day - it amazes me how many stories I read in The Wall Street Journal - how many books I see in my local Barnes and Noble - where guys like me - guys with just as much education and experience - go back and forth, back and forth...
We're running out of oil.
We're not running out of oil.
Get ready for the next Great Depression.
We'll be fine.
Here's my two cents on the issue:
The Department of Energy has absolutely no incentive to lie about how much oil is still out there. And they say we have quite a lot (7.6 TRILLION barrels - seven times more than all the oil we've ever used on earth).
But even this is beside the point.
As I said before: Unless your only interest is debate, it doesn't matter what you believe.
It was after months of reading the same old stories about oil that I realized the average investor wasn't hearing the most valuable pieces of information:
If you want to make money - follow the money.
There are plenty of opportunities out there for Big Oil - plenty of ways for them to spend their record-breaking profits to secure more oil.
And if you want to profit from this new wave of oil exploration, all you have to do is get in on these deals too.
I wrote a series of research reports that detail this exact scenario - why it's happening and how you can profit from it.
The First Wave of New Oil Wealth: Hunting for Oil is the first report in this series. It tells you all about the FIVE tiny companies that look most attractive to Big Oil today.
I believe it's only a matter of time before these companies are bought out at a hefty premium - making early investors rich.
A 200% gain is my conservative estimate - based on the prices Big Oil is paying for companies like these right now.
But my work doesn't end there.
I strongly believe these are the dawning days of a 20-year bull market in oil. And there are many more investments you can make to take advantage of it.
If you understand the industry... the relationships between companies... the new technologies being used... where new oil supplies will come from... and how they'll get to market...
Well...
Let's just say the prospects of investing in this kind of environment were enough to lure me away from my academic studies and industry field work...
To devote all my time to making a killing in the stock market.
I now spend every day analyzing the best investments in the oil industry... and reporting my discoveries for a financial research service called The Oil Report.
It's based on the idea that you can make a lot of money by investing in the places that Big Oil is bound to go.
The American Petroleum Institute says Big Oil will be spending nearly all of its earnings ($86 billion) to find more oil in the coming year.
Right now, they're buying up the last remnants of cheap oil - oil that's already been discovered by much smaller firms - the tiny companies I was telling you about earlier.
But as I mentioned, this is just the beginning. There are two more waves of new oil wealth on the horizon.
The second wave will come as oil companies start looking for reserves in places they never thought possible.
The newest frontier: Deep water.
The Minerals Management Service estimates there are 71 billion barrels of oil waiting to be discovered in the deep waters of the Gulf of Mexico...
There are another 85 billion barrels off the coast of West Africa...
And the waters that surround the Spratly Islands in the South China Sea could hold as many as 300 billion barrels.
Altogether, these three regions ALONE represent enough reserves to replace HALF of all the oil we've ever burned on earth.
But getting to this deepwater oil requires special equipment, new technologies, and lots of investment...
Remember: Follow the money.
'We have opportunities the magnitude of which we haven't seen since the 1970s, and we have the technology to take advantage of them.'
~ Lee Raymond,
Exxon CEO |
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The money is now starting to flow to the companies that specialize in deepwater drilling - the companies with the right technology to search under the ocean floor... the special deepwater rigs required to drill there... and the infrastructure to get that oil back to the mainland.
I've found four companies with just these specialties. And I believe it's only a matter of weeks before these stocks really take off...
The New Frontier of Oil Exploration
Over the last two years 65% of all new reserves worldwide were found in deep water. This year such projects will supply some 1.3 billion barrels, or 5% of global oil demand. That will double by 2010.
~ Forbes, October 2004
In 1935, British Petroleum (BP) passed on the chance to drill in Saudi Arabia because they thought there was no oil there.
In the entire history of oil exploration, there is no better example of how time - and new technology - can reshape everything we think we know.
After BP passed, Standard Oil of California stepped in. And thanks to seismic imaging - a new technology in the 1930s - they soon struck oil in the province of Dhahran.
Today, as you're probably aware, Saudi Arabia is home to the biggest oil field (Ghawar) ever discovered. And the country produces more oil than any other in the world.
It's a story that's played out hundreds of times - from the invention of rotary drilling in the 1890s... to the today's 'visualization centers' - special rooms that project IMAX-sized 3-D images of underground oil deposits...
New technologies - new ways of exploring - have allowed us to find billions of barrels of oil we never knew existed.
Not only that... these advancements have even boosted the amount of recoverable oil in places we've already drilled.
Just recently, according to Fortune Magazine, computer imaging techniques added 4 billion barrels of oil to the wells of Prudhoe Bay, Alaska - a 40% increase - and recovered another 400 million barrels from the Brent Field in the North Sea.
My point is this:
There are trillions of barrels of oil left to be discovered (7.6 trillion, according to the U.S. Department of Energy).
And new technologies are enabling us to go get it.
Where is Big Oil looking now?
Deep water.
Just follow the money...
Reviving the Dead Sea
By the 1990s, Big Oil was ready to leave the Gulf of Mexico.
'The biggest winners will be the drilling companies.'
~ MSN Money,
May 2005 |
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The prospects of finding more oil were poor.
And in industry circles, it was often referred to as the 'Dead Sea.'
Few companies were pushing the boundaries of the region because the technology of the day could only support drilling in up to 5,000 feet of water (about half the depth we're drilling in now).
But two companies, BP and Exxon, decided to put new technologies to the test... new deepwater rigs and imaging tools that promised to detect oil 20,000 feet below the Gulf's surface - through water, sand, salt and hard rock.
In 1999, they hit pay dirt - the oilfield now known as Thunder Horse.
It contains total reserves between 1.4 billion and 3 billion barrels of oil - the largest discovery ever made in the Gulf of Mexico.
According to Petroleum News, 'the project features more than 100 technological firsts, including a new generation of engineering solutions to deal with the ultra-deep, high temperature and high pressure reservoir,' which lies beneath '19,000 feet of mud, rock and salt, topped by more than 6,200 feet of ocean.'
Since this breakthrough, the rush is on to develop more deepwater and ultra-deepwater basins.
'Already, producers are entering into premium-rig contracts that extend to 2008. Quite a change from prior years, when rigs were booked per job. Meanwhile, the contracts are at prices nobody would have dreamed of a year ago.'
~ Barron's ,
November 2005 |
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Anadarko Petroleum Corp. has actually abandoned its shallow water operations to focus on deepwater exploration.
The North Sea has also experienced a rebirth.
The British government just issued more than 150 oil exploration licenses, the greatest number of licenses in a period since the 1960s.
And, according to Forbes, Chevron expects to spend $3.4 billion in the next three years to develop fields off the coast of West Africa that hold more than 1 billion barrels of oil.
In every one of those places, oil companies are going to need the specialized services of deepwater drilling companies.
We'll follow the money... and you'll get rich in the process...
Producing fields make up only 25% of all the discovered deepwater oil fields.
Put another way: 75% of the known deepwater prospects still need to be drilled.
That's good news for one company I've recently discovered.
They own nearly HALF of all the deepwater drilling ships in the world. No other company comes close.
As demand heats up for their services, it's almost guaranteed they'll bring in a fortune. (The price you'll pay to use their ships runs $300,000 to $400,000 PER DAY.)
One of those ships is often referred to as the Cadillac of deepwater drilling - the largest and most sophisticated of its kind.
It can reach far below sea level, then bore through another 20,000 feet of sand and rock.
It can even drill horizontally.
As it drills, a sophisticated GPS system and six thrusters (that can pivot 360 degrees) keep the ship centered above the well, even in winds of up to 95 miles per hour.
Without these rigs, it's impossible to drill for oil in deepwater.
But that's not the only thing you need...
How do you find the exact position to place an oil well on the sea floor?
How do you guide the drilling rods through 10,000 feet of water?
If something breaks at the bottom of the ocean - how do you fix it?
You call a service company.
'According to government estimates, the Gulf of Mexico could hold as much as 71 billion barrels of recoverable oil and gas reserves. Of these, about 80% remain to be found, mostly in deep water.'
~ New York Times,
October 2005 |
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I've found three very attractive engineering companies that will benefit from the surge in offshore well drilling.
- The first of these companies is a sub sea engineering company that specializes in remotely operated vehicles (ROVs), flexible steel cables (called umbilicals), and other well completion products.
In layman's terms: These guys make sure that deepwater drill you're leasing for $400,000 a day is actually going to get where it needs to go.
This company, in fact, is the largest provider of these kinds of services. And they own 38% of the world's ROV fleet.
As for the flexible steel cables - you can't produce deepwater oil without them.
And at the end of 2004, this company had a $78 million backlog of orders.
That is expected to grow to over $112 million by the end of 2005.
At that point, it's simple economics: When demand exceeds supply, prices (and earnings) rise.
- The second company I found is a marine construction and pipe-laying company.
If you thought a $78 million backlog was big... these guys beat that by a mile. Their backlog is $600 million.
They operate all over the globe - in Asia, India, West Africa, the Mediterranean, and the Gulf of Mexico - and work with almost all the major, and many independent, oil companies.
- The third company is a unique hybrid of energy and engineering - a marine engineering firm that works in the Gulf of Mexico, North Sea, and Asia/Pacific regions.
Their unique marriage of oil production and engineering service provides them with a constant revenue stream and capital to take advantage of opportunities.
Gross profits increased by 80% from the same period last year, and were up 40% from the 2nd to the 3rd quarters of this year.
I don't see any signs of a slowdown.
All four of these companies are positioned to take advantage of the surging demand for deepwater drilling infrastructure.
And I'd like to give you the full details in a Special Report called: The Second Wave of New Oil Wealth: The New Frontier.
It will give you the full details on these four companies... how you can invest... and how much you can expect to make on each one...
This report - like The First Wave of New Oil Wealth: Hunting for Oil - is also FREE of charge.
To receive a copy of each, all I ask in return is that you give my monthly research service - The Oil Report - a risk-free trial.
Let me tell you more about my service so you can decide if it's right for you...
Following the Industry - From Every Angle
If you agree to take a trial subscription to The Oil Report, you'll receive a new report every month on the very best oil investments in the market today.
These include the tiny companies I think are about to get swallowed by Big Oil - at premiums that could conservatively reach 100%-200%.
Many experts believe this is just the beginning of a boom in Big Oil acquisitions that could last through all of next year.
In the next 12-18 months, there could be dozens of opportunities to double your money.
You'll also hear about the companies that specialize in the new oil technologies - the technologies necessary to find oil in places we haven't looked before - and the companies that are using that technology to explore for oil in new frontiers.
This is the basis for my work in The Oil Report - that Big Oil will be investing billions in the search for new oil - and all you have to do is follow the money.
But my research isn't limited to this one idea.
I follow the industry from every angle, and I report on the very best opportunities, wherever they happen to be.
For example...
Get Paid to Invest in Oil
Most people aren't aware of special business entities in Canada called Royalty Trusts.
Like all public companies, you can buy shares of Royalty Trusts on the stock market, through any regular broker. And they trade just like any other stock.
But unlike most companies, Royalty Trusts are required by law to pay out at least 90% of all their earnings to shareholders. (They get special tax breaks in return.)
That means, as an investor, you make a nice annual return (usually double-digits) just for holding these stocks - whether the share price goes up or down.
I've recently discovered what I believe is the best of these Royalty Trusts. It trades on the New York Stock Exchange, and has been paying a quarterly dividend totaling 10% a year for the past 20 years.
And just like every other oil company, this company - and its share price - go on a tear when the industry heats up.
Over the past 5 years, this stock has soared over 650%.
Given the fact that they've just secured 70% of a huge oilfield in Montana called Sleeping Giant - and have a plan in place to develop 80 new wells over the next three years - I think there's still plenty of room for this stock to run.
But even if they never found another drop of oil - they have enough reserves - and enough production capacity - to last another 14 years.
That's 14 years of earnings and - by law - 14 years of guaranteed dividends... on top of any further moves the stock makes... even if they NEVER find another drop of oil.
The way I see it, you can take a portion of your 'safe money'... invest in this company (and others like it)... and use the dividends to play the rest of the oil market.
I wrote an entire report about how these Trusts work - including the details of the company I've been describing.
It's called Get Paid to Invest in Oil: Guaranteed Income from Canada's Royalty Trusts.
If you agree to take risk-free trial of my service, I'll send you a FREE copy of this report...
The total Oil Report package includes:
- 12 monthly issues of my newsletter - and the full archive of past issues.
Every month, I'll report on the very best ways to make money investing in oil.
I'm primarily looking for tiny companies with lots of cheap oil... and companies that specialize in new technologies - the two places Big Oil will be putting most of their money.
- Special Report: The First Wave of New Oil Wealth: Hunting for Oil.
If you're a tiny oil company - with reserve in Kazakhstan - you've got a target on your back.
In this report, you'll learn all about the only two companies left in this region that Big Oil has yet to get their hands on.
You'll also learn about the other 'hot zones' of exploration - and the tiny companies in each of these regions that could soon be bought out at premiums of 100% or more.
- Special Report: The Second Wave of New Oil Wealth: The New Frontier.
From the very first days of oil exploration, new technologies have enabled us to look for oil in places we never thought possible.
I've found four companies that specialize in deepwater drilling.
In this report, you'll learn all about them.
- Special Report: Get Paid to Invest in Oil: Guaranteed Income from Canada's Royalty Trusts.
In this report, you'll learn how one simple investment could supply you with a steady stream of cash flow guaranteed by the government.
I believe it's safe enough to put a chunk of your portfolio into - and use the dividends to subsidize other investments.
- In addition to these special reports and monthly newsletters, The Oil Report also includes regular commentary on what's going on in the oil industry - and how you can position yourself to profit from it.
You and I both know that the oil industry isn't going to wait for me to write my reports every month. And it's not going to wave a flag every time a great investment pops up.
That's why I keep what I call my oil diary.
In my oil diary, I take all the information I receive from the media... from my industry contacts... and my own research... and study it for trends.
Aside from general commentary... I'm primarily looking for clues on where Big Oil is going next.
At least twice a month - and sometimes more - I'll share this oil diary with you... in a simple and concise email that will tell you what's going on... and how you can profit from it.
That way you're always two steps ahead of the market.
The Oil Report research service, including everything I've just described, costs just $199 a year.
And, as I said before, you can try The Oil Report risk-free.
Sign up today and I'll send you a FREE copy of each of my Special Reports.
You'll also begin receiving my monthly newsletter and my bi-weekly Oil Diaries.
Take the next 6 months to decide if my work is right for you.
I guarantee you'll more than double your money AT LEAST one time during that period.
If you don't - or you're unsatisfied with my research for any reason - simply cancel before the 6-month trial period is up.
I'll give you a full refund. And everything I sent you is yours to keep.
I can make this guarantee because I'm confident in the quality of my work - and I know that once you've given my service a try, you won't want to invest without it.
At $199 a year, I think it's the best deal out there.
You'll pay more than that for a subscription to The Wall Street Journal - and they certainly won't tell you how to make 200% in a single day.
But before I show you how to get started, there's something else I have to tell you about...
The third wave of new oil wealth...
The Third Wave of New Oil Wealth: Gas
Find gas once, you're forgiven. Find gas twice, you're fired.
~ Old oil industry adage
In 1995, the U.S. Department of Energy predicted that the price of natural gas in 2010 would be $3.50 per million cubic feet (MCF).
In 1996, that estimate was revised... to $2.10.
It was the end result of the slow process of deregulating the industry - the lifting of federal price controls - and the flood of new companies into the business of selling gas.
Decades of these obscenely low prices eventually led to two things:
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Oil executives - unable to make a profit with natural gas - turned their backs on it. | | |
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With all the oil stories that are making the news these days, you've probably heard how natural gas was - up until recently - considered just a waste product of oil exploration.
As oil was pumped out of the ground, the gas that followed was simply burned away. | | |
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Because no one cared about natural gas, no one built the infrastructure - the pipelines and collection centers - needed to bring it to market. |
After years of shunning natural gas, the laws of economics finally prevailed...
Today, the price of natural gas has hit an all-time high of $15 per MCF - an increase of 400% in less than 4 years.
'There's 200 years worth of natural gas left in the world.'
~ Vijay Vaitheeswaran
Global Energy CorrespondentThe Economist |
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What's causing the spike?
It's not demand. According to The Wall Street Journal, demand for natural gas has remained essentially the same for the past 20 years.
It's not supply either.
Unlike oil - where we're almost totally dependent on imports - most of the natural gas we consume in this country comes from this country - about 84%, according to the Energy Information Administration.
The reason that gas prices have soared over the past 5 years is we don't have the means to bring the gas we need to market.
We don't have the drill rigs... the pipelines... the collection centers...
Even if we tap 1,000 new wells next year - it won't matter - unless we build the infrastructure we need...
For sure - with gas prices at all-time highs - Big Oil is tripping over themselves to rectify that situation.
'At the moment,' reports Ken Deffeyes in his book Beyond Oil, 'drilling for natural gas has eclipsed drilling for oil. The count of U.S. active drilling rigs for March 19, 2004, showed 162 rigs drilling for oil and 963 looking for gas.'
'Big Oil Firms Join Hunt for Natural Gas...'
'The world's three largest energy companies - ExxonMobil Corp.,
BP PLC and Royal Dutch Shell PLC - are stepping up their hunt for natural gas in a place largely ignored in recent years: the continental U.S.'
~ The Wall Street Journal,
November 2005 |
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Just like Big Oil's investments in new technology... the third wave of new oil wealth will come as Big Oil starts investing in natural gas infrastructure.
If you get in early, you're in line for some amazing gains.
One company I've just discovered has processing facilities that include 18 plants with 13,800 miles of gas-gathering pipeline.
Their system includes 5,600 miles of transportation pipeline – including a 70% stake in a 2,239 mile interstate pipeline that transports 22% of all gas moved from Canada to the U.S.
In layman's terms: They are the largest natural gas distributor in both Kansas and Oklahoma... third in Texas... and are in the best position to reap the windfall as Big Oil starts investing in gas.
Already, the company's third quarter profits are up over 155% from last year - with no signs of a slowdown.
You'll get the full details of this company in my special report called The Third Wave of New Oil Wealth: Natural Gas.
You'll also get the full details of two other companies just like it - companies that stand to profit handsomely as Big Oil money flows to natural gas.
This report is also FREE for trying The Oil Report service today.
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Editor, The Oil ReportJanuary 6th, 2005
P.S. Big Oil is moving at a blistering pace. Three of the companies I wanted to tell you about in this report were bought out before I could even finish writing.
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