The Common Sense in Energy Investing

Keith Kohl

Written By Keith Kohl

Posted December 15, 2011

I can’t help but feel sorry for them.

Walking through an office full of traders last week, it was difficult not to.

You see, these guys have been living on coffee and cigarettes for months, their eyes glued to flashing computer screens…

It’s all part of the countless buying and selling they do on a daily basis.

Before I reached the end of the hallway, I heard them whispering amongst themselves. It seemed half of their hush-hush conversations concerned Europe; the rest, Obama.

I caught sight of one poor soul holding an argument with himself. Whichever side was winning wasn’t clear, but his feverish pace was taking a grim toll.

“I’m getting killed out there,” he murmured as I peeked around the corner of his unadorned cubicle.

You might be asking yourself why I am so sympathetic to the professional trader’s plight.

Well, for all their maneuvers in the market, these people don’t hold an ounce of sense when it comes to investing. And I know for a fact that these “professional traders” are losing even more to another group of investors…

Us.

Guaranteed Energy Growth

If I’d had the chance, I’d have given the gentleman debating with himself just one bit of advice: Energy stocks are ripe for the picking.

It’s obvious how skewed the global oil industry is today. To think otherwise would be foolish.

Within a matter of five decades, we’ve seen National Oil Companies gain control of nearly 95% of the world’s oil reserves. OPEC members alone are responsible for one-third of global supply.

What many people don’t realize is how distorted things are on the other side of the equation.

The ten largest oil-consuming countries in the world today make up 60% of total demand.

Ten countries!

Just take the top five of that list, and we’re talking about 40%.

That means half of the world’s oil demand — now approaching 90 million barrels per day — comes from a handful of countries…

small world oil consumersclick to enlarge image

Did you happen to notice the light blue slice of the pie?

Within just 15 years, China’s oil demand has more than doubled.

Several weeks ago, the IEA reported 90% of the growth in global energy demand will come from non-OECD countries.

By 2035, China will account for more than 30% of the world’s energy. China’s demand for oil last month was the second-highest on record.

Although it won’t be enough to overtake the United States’ top spot, finding that energy will be a daunting task…

Of course, the Middle Kingdom is already making preparations — which is why Chinese companies have been scouring North America for a solution, spending billions in the process. And it’s no secret as to which energy sources will be dominating the scene by then.

What’s the cost behind this inevitable growth? 1.5 trillion dollars every year from now until 2035.

According to the IEA, that’s how much the world will need to invest in the energy-supply infrastructure.

So you can understand why we’re looking to do more than just scrape by with day-to-day trading…

Look, no matter what you do, you’ll never be able to control the daily flow of news coming from Europe, or know exactly how the geopolitical game of Risk will turn out in the Middle East.

You can, however, practically guarantee your energy profits.

How?

It’s a theme we’ve touched on all year:

You can either roll the dice with the bigger names in the field, all of which are being squeezed out of the world’s oil fields by those domineering NOCs, or you can do exactly what the big players are doing — that is, you can find the sorely undervalued players that are being scooped up feverishly.

Take a look at the following chart:

kog disguise chart

Ever since my report alerted readers to the huge potential in the U.S. oil sector, plays like this one have more than doubled.

The best part?

This is only one example of how profitable these plays are right now, all during a market that’s tearing professional traders (like the ones I mentioned earlier) apart on a daily basis.

That’s why I’ve been beating this drum for years — and will continue to do so.

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Until next time,

Keith Kohl Signature

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.

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