The Biggest Investment I’m Making Today… and It’s NOT Oil

“Extraordinary times call for extraordinary measures.”

These were the famous last words argued by Australia’s prime minister late last year for his government to cap gas and coal prices. 

Come on, we’ve heard this story before time and again, haven’t we? How many times have we seen our own government go after the oil and gas industry over the last year? 

I can’t say I blame it — oil and gas companies are the perfect scapegoat, a political punching bag to knock around when your energy prices are high. 

So it was an easy decision for the Australian government to make from its point of view — capping gas prices at $12 per gigajoule for 12 months and providing $1.5 billion of federal assistance for relief. 

The legislation also opened the door for future market interventions and called for producers and consumers to negotiate gas contracts at “reasonable prices.”

Besides, if they could help decarbonize the planet in the process, why not?

I’ll tell you why not… 

This can easily turn into an unmitigated disaster in the long run.

And if you can see just a little further down the road, you’ll recognize the incredible buying opportunity that is opening up.

Sounding the Alarm 

Over the years, we’ve talked about the unintended consequences of turning the oil and gas industry into the fall guy. 

Here in the United States, harsh political rhetoric has created an uncertain investment environment. Remember, the golden age of shale is over. Nowadays, companies in the U.S. oil patch are far more conservative compared with a decade ago when drilling activity was fueled by taking on enormous loads of debt. 

I’ve already shown you my favorite gems inside the U.S. oil industry.

Today, I want to show you how one policy disaster can snowball into a full-blown crisis.

But don’t just take my word for it. 

The CEO of Inpex — Japan’s largest oil and gas company — is sounding the alarm. In a recent speech, Takayuki Ueda warned that Australia was quietly quitting the global natural gas market. 

Thanks to the legislation we mentioned earlier, Australia’s government has become increasingly hostile to companies looking to invest in the country’s gas production. 

What that means is there will be less gas for the Aussies to export. In case you weren’t aware, Australia is a top-three global exporter of LNG.

Take a look for yourself:

As you can see, Australia’s LNG exports are a critical component of the world’s energy security. 

Of course, the countries that will be hit hardest by these policy flops will be China, Japan, and South Korea, which accounted for roughly 90% of Australia’s LNG exports in 2021. 

It’s the reason for Mr. Ueda’s concerns; for every cubic foot of natural gas that is taken away from Japan, more coal will be needed. 

Now, China has been turning more and more to Russia and Qatar for natural gas. In fact, China National Petroleum Corp. just inked a near 30-year LNG deal last month. 

Trust me, it’s not Russia to whom Japan will be turning to to keep the lights on. 

Take another look at that LNG exports above, and you'll see…

It'll be us.

Until next time,

Keith Kohl

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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.