At last count by the Energy Information Administration, the United States is importing roughly 9.1 million barrels of crude on a daily basis.
Of those imports, 48% is coming directly from OPEC members.
Those numbers aren’t really where we’d like them to be, but let’s face it; our addiction to Middle East oil has never been a secret.
And if you think we have it bad when it comes to foreign oil dependence, you haven’t considered what’s going on in India…
With a population of 1.2 billion, India relies on OPEC countries for an overwhelming 78% of its oil imports:
Granted, this wouldn’t be as problematic if India’s consumption wasn’t taking off like a shot:
Unfortunately, there’s a rather large snag in securing future oil supplies. We touched recently on this side of the Middle East oil crisis that threatens future oil exports.
At current demand levels, India is relying on the oil cartel for about 2.5 million barrels per day, so you can imagine how eager they are to find a more reliable source of crude.
Here the United States, the solution seems simple enough: For every barrel we add to domestic output, we could technically scratch off one barrel from our OPEC imports. In fact within the last five years, we’ve been able to boost production by almost 25% while cutting OPEC imports by 23%.
But India can’t say the same.
During the same period, India’s production grown by less than 10% and now sits around 900,000 bbls/d. And those OPEC imports come with a heavy price. They dished out over $140 billion for imported oil last year alone.
It really leaves them with only one option: find a new supplier.
If India can’t count on OPEC going forward, they’ll be forced to look elsewhere… and that’s exactly what they’ve started doing.
But the question is are they too late?
Blue Light Energy Special
There’s a blue light special right now on North American energy plays.
Just last week we looked at the buying spree taking place on North American soil. And it makes perfect sense when you consider Canada and the United States are among the few countries that can still increase oil production.
It was only a few months back when China’s CNOOC announced its $15.1 billion acquisition of Nexen Inc. India may be joining them very soon…
At least, that’s what will happen if several of India’s state-run oil companies spend $5 billion for a 50% stake in ConocoPhillips’ oil sands assets. That’s just the latest in a string of deals that have gone down over the last few years.
Last month, Kuwait paid its way onto the Canadian oil sands patch when its state-run oil company invested $4 billion in an oil sands project with Athabasca Oil Corp.
(You might remember Athabasca from January, when it sold its remaining MacKay River oil sands property to PetroChina?)
It’s intriguing to see how willing Kuwait is to develop Alberta’s bituminous sand when they have 115 billion barrels of oil in their own backyard. I guess having 263 billion barrels of recoverable oil is enough to grab anyone’s attention…
Then again, it’s not just oil these countries are after — because these billion-dollar deals in the oil sands are just the tip of the iceberg for the rush to stake a claim in Canada’s energy sector.
Investing in Canada’s Energy War
As it turns out, India’s potential bargain isn’t solely focused on Canada’s heavy oil fortune. GAIL is currently gunning for a piece of Repsol’s stake in Canaport LNG project.
Perhaps the largest potential for North American energy is through LNG exports. This is especially true for Canada. Right now, practically all Canadian energy exports are sent south into the lower 48 states.
Fact is, we’ve always been their best customer — but that’s because we’ve been their only customer.
Within ten years, that’s going to change, whether we want it to or not.
Why sell us natural gas for $3/Mcf when Asian-Pacific countries are paying 6x that amount?
This has created an unprecedented buying opportunity for investors ready to cash in on this battle for Canadian energy. In fact, a select few companies are even offering you the chance to get in on the ground floor of these future Canadian LNG exports…
Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.
