Everything we’ve been telling you continues to materialize.
There’s a North American oil and gas renaissance underway…
Foreign firms have invested more than $6 billion here since December, and the frenzy shows no signs of slowing down.
Just this week PetroChina (NYSE: PTR) paid over $1 billion for a 20% stake in Shell’s (NYSE: RDS) Canadian Groundbirch natural gas project. Located in British Columbia, Shell says the project can deliver 1 billion cubic feet of natural gas equivalents (bcfe) per day and will have a lifespan of 40 years.
Last November, CNOOC (NYSE: CEO) paid $2.04 billion to buy Opti Canada, giving China it’s second foothold in Canada’s oil sands.
In October, China Petroleum & Chemical, or Sinopec (NYSE: SNP), paid $2.2 billion for Daylight Energy’s assets.
High Supply
These abundant new finds of shale oil and gas have given temporary reprieve to the supply/demand picture.
OPEC is producing oil at a three-year high. It produced 30.7 million barrels per day (bpd) in December and 30.9 million bpd in January – both above the 30 million bpd target agreed upon at the cartel’s last meeting.
They aren’t the only ones increasing production…
The Energy Information Administration says total crude and liquid fuels production is expected to grow by 1.4 million bpd this year. OPEC will be responsible for 900,000 bpd of that growth, but the rest will come from the rest of the world, presumably from Canada and the U.S.
What’s more, demand is supposed to grow by only 1.3 million bpd this year, meaning we’re in for a short-term supply glut.
Same goes for natural gas, where plentiful shale supplies have forced prices down below $2.50 per thousand cubic feet (tcf) – the lowest prices in a decade.
This means investor gains are more likely to come from drillers and service companies than from the actual commodities themselves.
We’ve identified three companies you should be looking at if you want to profit from this boom.
And we’ve discussed plenty of other ways to play it as well, some of which you can find in the selection of this week’s coverage below.
Call it like you see it,
Nick Hodge
Editor, Energy and Capital
Beryllium Alloy: One of Lightest, Strongest, Most Profitable Metals Known to Man
This alloy was used in the construction of the Hubble Telescope. The Pentagon wants to use this same metal in drones to make them lighter, stronger, and more economical. Learn about the company developing a beryllium alloy at a fraction of the cost — and how you can profit.
Gold Going Up, Up, Up: Position Yourself in Precious Metals Now
Thirteen-year gold investor and bullion dealer Greg McCoach explains why you should be buying gold… and more importantly, where you can get in on the groundfloor with the biggest gold discovery in decades.
Who Is Henry Hub?: Natural Gas Prices Explained
Editor Nick Hodge explains Henry Hub, and how it’s used in natural gas pricing.
Gold’s Up 12%: More Investors Turn to Gold Coins
Gold has climbed from below $1,600 an ounce to $1,750 an ounce in the last month. And this move came despite the fact that stocks have had their best-performing January since 1997. It is obvious that the gold market thinks the Fed is out to destroy the dollar in order to prop up the big banks, which are still carrying massive amounts of housing debt.
Investing in the Eagle Ford: Texas Strikes Oil Again
Energy and Capital editor Keith Kohl explains why the Chinese are trying to corner the market on these shale profits before U.S. investors catch on.
Natural Gas Infrastructure: The Mother of All Arbitrage Plays
Around 1400 BC, a goat herder saw a burning flame coming out of a spring. He also noticed his animals acted strangely after wandering near a particular chasm on Mount Parnassus. After investigating, he found himself “agitated like one frantic.”
Warren Buffett Renewable Energy Investment: Where He Just Invested $9 Billion
Editor Jeff Siegel reveals Warren Buffett’s growth strategy for energy investing.
Gold and Silver Are Headed for Record Highs: This Gold Chart Says It All
Gold and silver are on fire… and the charts for both are insanely bullish. When the masses jump into gold, even a tiny portion, it’ll send the price of gold up dramatically. You’ll want to position yourself accordingly for this perfect storm.
The Keystone XL and the Northern Gateway: A Tale of Two Pipelines
Editor Nick Hodge gives his take on two proposed Canadian oil pipelines, and tells readers to ignore the politics if they want to make money.
Burying Peak Oil: The Secret Behind Report 117
Keith Kohl reveals the Peak Oil report that has been buried by the Australian government for over two years.
Utica and Marcellus Shale Natural Gas: The Golden Road from Wheeling to Cove Point
Wheeling, West Virginia, now has an unemployment rate lower than the national average… and it’s all thanks to the production of natural gas liquids from the Marcellus formation in the Mountain State.
Chinese Record Gold Rush: China Buys Record Amounts of Gold
The people are looking at inflation moving above 4%, a stock market that has fallen 20%, and a housing market that is about to go tits up. The average Chinese person has the world’s highest savings rates but few investment options. So they are buying physical gold.
