TheNew Cold War
And how to protect yourself from the fallout
Read this report to discover...
- The details on this New Cold War on the African continent… what it means to you and how to survive it
- Canada's crucial role… and how it could determine America's fate
- Profit opportunities for investors as the New Cold War intensifies
- The weapons in America's arsenal that could tip the tide to victory (and lead to life-changing gains)
- The "time bomb" in the Middle East that promises to intensify the conflict
As NATO-aided rebels overwhelmed Qaddafi's forces last summer, 36,000 Chinese engineers, tradesmen, and technicians fled Libya, leaving $20 billion in infrastructure and oil development projects behind in disarray.
China's refusal to support the NATO attacks – and rumors that it offered to sell Qaddafi weapons to squash the revolt – didn't sit well with the Libyan rebels.
Yet, less than one year later, China managed to get itself back in the good graces of the new Libyan leadership by offering to take a major role in the country's post-war reconstruction – clearing the way for Chinese buyers to receive preferential treatment for access to Libyan oil.
But China wants much more than Libya's crude. It sees the country as the perfect springboard to a far bigger prize – control of Africa's massive untapped oil reserves, estimated at 200 to 210 billion barrels. That's about as much as is held by Venezuela, which has the world's second-biggest proven oil reserves.
It's all part of China's "grand plan" to buy up all available energy resources, which it's doing at an alarming rate…
The high-stakes game of
The current situation is much like the US-Soviet Union Cold War that loomed over the world for decades.
Now we have two superpowers with conflicting interests battling it out on the world stage again.
Only this time it's not about ideologies… it's about survival.
Even as you read, the US and China are battling it out for the world's ever-dwindling energy resources… and the US appears to be losing.
China has spent $75 billion on
oil acquisitions in the last 5 years
China energy grab news update
The China National Offshore Oil Corporation (CNOOC) made its biggest and boldest grab for energy resources to date in a $15 billion bid for Canadian oil producer Nexen. If the deal, announced on July 23, 2012, goes through, it would give China footholds in the Gulf of Mexico, the Canadian oil sands in Alberta, the North Sea, and the waters off Nigeria.
With approximately $1.5 trillion dollars on hand, China can afford a blank-check policy when it comes to snapping up worldwide energy deposits.
Since 2005, China has closed no fewer than 45 deals in the oil sector alone.
Thirty-two of these were each worth at least $500 million, and eight carried price tags of $3 billion or more.
|Nov11||Sinopec||Stake in Brazilian unit of Portugal's Galp Energia||30%||5.2|
|Oct11||CNOOC||Stake in Opti Canada's Long Lake oil sands project||100%||2.1|
|Oct11||Sinopec||Offer to acquire Canadian oil and gas firm, Daylight Energy||100%||2.1|
|Dec10||Sinopec||Stake in Chevron's Gendalo-Gehem deep water gas project in Indonesia||18%||0.68|
|Nov10||CNOOC||Stake in Pan American Energy from BP||60%||2.5|
|Nov10||CNOOC||Stake in Chesapeake's 600,000 net acres in the Eagle Ford Shale||33%||2.2|
|Oct10||CNOOC||Stake in Tullow Oil's interest in 3 blocks in Uganda (JV with Total)||67%||> 1|
|Oct10||Sinopec||Stake in Brazilian subsidiary of Spanish oil company Repsol||40%||7.1|
|May10||CIC||Stake in Canada's Penn West Energy Trust's bitumen assets near Peace River||45%||0.8|
|May10||CNPC||Stake in Shell's subsidiary, Syria Petroleum Development BV||35%||1.2-1.5|
|May10||Sinochem||Stake in Statoil's Peregrino oilfield in Brazil||40%||3.1|
|Apr10||Sinopec||Stake in Canadian oil sands company Syncrude from ConocoPhillips||50%||4.7|
|Joint bid to own Arrow Energy, Australia-based coalbed methane producer||100%||3.1|
|Mar10||CNOOC||Stake in Argentinean oil company Bridas, with oil/gas operations also in Bolivia, Chile||50%||3.1|
|Oct09||CIC||Stake in Nobel Oil Group to fund Russian expansion plans||45%||0.3|
|Sep09||CIC||Stake in KMG, by purchasing global depository receipts||11%||0.94|
|Purchased Kazakhstan TBM's 49% share in Zaysan block (east Kazakhstan)||49%||0.3|
|Stake in two projects of Athabasca Oil Sands in Alberta||60%||1.9|
|Aug09||Sinochem||Purchased Emerald Corp. for its assets in Syria and Colombia||100%||0.88|
|Stake in SPC (Singapore)||96%||2|
|Jun09||Sinopec||Purchased Addax Corp.||100%||8.8|
|Joint purchase of MMG (Kazakhstan)||100%||3.3|
|Stake in block 32 (Angola) from Marathon Oil||20%||1.3|
|Jun05||Sinopec||Purchased Tanganyika Corp. for assets in Syria||100%||1.8|
|Jun05||CNOOC||Purchased Awilco Corp.||100%||2.5|
|Jun05||Sinopec||Stake in Australia's AED Oil||60%||0.56|
|Jun05||CNOOC||Stake in Husky (Madura) Energy's assets in Indonesia||50%||0.13|
|Jun05||Sinochem||Purchased Soco Yemen for assets in Yemen||100%||0.46|
|Jun05||CNOOC||Stake in OML 130 (Nigeria) from South Atlantic Petroleum||45%||2.3|
|Purchased Block H (Chad) from Swiss company Cliveden||100%||0.48|
|Purchased EnCana's oil and pipeline interests in Ecuador||100%||1.5|
|Jun05||Sinopec||Stake in Udmurtneft for assets in Russia (later sold 51% to Rosneft)||46%||~1.7|
|Stake in JSC Karazhanbasmunai for assets in Kazakhstan||50%||0.95|
|Stake in Seram block in Indonesia from KUFOEC||51%||0.1|
|Jun05||Sinopec||Stake in oil sands projects by acquiring 50% of Omimex de Colombia||25%||0.4|
|Jun05||Sinopec||Stake in Northern Lights oil sands project||50%||~0.05|
|Stake in Al Furat Petroleum Company from Petro-Canada||19%||0.57|
|Jun05||CNOOC||Stake in MEG Energy for oil sand business||15%||0.22|
|Jun05||CNPC||Stake in block 18 from Angolan government when Shell left||50%||2|
|Jun05||Sinopec||Purchased Kazakh petroleum assets from First Intl Oil Corp.||100%||0.15|
|Jun05||CNOOC||Stake in Tangguh LNG project from BP||14%||0.34|
|Jun05||Sinochem||Purchased Atlantis from Norwegian Petroleum Geo-Service||100%||0.11|
|Jun05||Sinochem||Stake in block 16 (Ecuador) from ConocoPhillips||14%||0.1|
|Purchased Devon Energy Corp. for six blocks in Indonesia||100%||0.59|
|Jun05||CNOOC||Purchased YPF Repsol's upstream assets in Indonesia||100%||0.59|
|45 deals involving 21 countries → Total cash outlay by China: US$75 billion|
All these acquisitions give China ownership of oil resources in countries from all four corners of the globe – from oil sands projects in Canada and Columbia, to petroleum projects in Angola and Nigeria, to outright purchases of oil companies in Australia.
It's even bought 33% of Chesapeake's Eagle Ford Shale project in southwest Texas.
No US-Canadian oil pipeline?
No problem – China's happy to
snap up Canada's crude
You've probably heard about the controversy around the 1,700-mile Keystone XL pipeline project that was meant to transport crude oil from Alberta to Gulf Coast refineries in Texas.
The importance of that pipeline is hard to overstate. That’s because Canada has more than 90% of all proven reserves outside of OPEC. In other words, a LOT of oil.
Yet the US government has so far refused to let that pipeline be built, and in doing so is all but handing China another easy victory.
As soon as President Obama nixed Keystone on January 18, 2012, the Canadians panicked, and Prime Minister Stephen Harper began to talk openly about sending the country’s oil to Asian markets.
"I am very serious about selling our oil off this continent, selling our energy products off to Asia. I think we have to do that."
– Canadian Prime Minister Stephen Harper in a 12-19-11 interview with Canada's CTV National News
It's not hard to see why.
In 2010, Canada's oil sales to the US comprised a whopping 99% of the country's worldwide exports… approximately 1.9 million barrels of oil a day.
If the Keystone pipeline is not built, Canada's oil sands will still be developed – but instead of the oil being shipped to the US, it will be sent overseas.And China, already a major importer of Canadian oil, is more than happy to take as much oil off the Canadians' hands as they can deliver… quite possibly at premium prices.
A new bull market in oil
It's a vicious battle over resources, but no matter who comes out on top – the US or China – it's creating the perfect conditions for a spectacular bull market.
I should know, because I live and breathe these markets. My name is Marin Katusa, chief energy investment strategist for Casey Research.
You could say energy is my life. I spend 300 days a year traveling throughout the world to inspect energy companies, vetting their resource estimates, finances, and management in order to draw conclusions about their prospects for investors.
And in all my years of advising investors on profit opportunities in natural resources, I've rarely seen one that has more potential than the current energy market.
China's Also Winning the Battle for Saudi Oil
In February 2010, US Secretary of Energy Steven Chu announced that China had surpassed the US in short-term daily average oil imports from Saudi Arabia for the first time.
This is a huge turnaround, since as recently as 2007, Saudi Arabia exported more than twice as much of its oil to the US (15.9%) than it did to China (7.2%).
And while in 2011 the US imported slightly more oil from Saudi Arabia than China did – an estimated 1.18 million barrels of oil per day compared to China's 1.01 million barrels – one is left with the inescapable conclusion that China will continue to compete aggressively with the US for Saudi oil.
In fact, I'm convinced it could easily rival gold's decade-long moon shot.More on those opportunities in a moment – including a low-risk, high-profit play on a company that will profit handsomely regardless of where oil and gas prices go – but first, let's look at some of the hot zones in the intensifying Cold War over energy.
the front lines
The Middle East and North Africa (MENA) are without doubt the fiercest battlegrounds in this clandestine war.
Iran – not taking
no for an answer
Despite American and European clamoring for a worldwide embargo of Iranian oil, China is not about to stop importing crude from this oil-rich Middle-Eastern nation.
Despite American and European clamoring for a worldwide embargo of Iranian oil, China is not about to stop importing crude from this oil-rich Middle Eastern nation.
The reason is simple – Iran is currently the third-largest supplier of oil to China. In fact, rather than cutting its trade, China’s Iranian imports rose by 30% in 2011 from the previous year, to 557,000 barrels of oil a day.
So it's no surprise that the Chinese are snubbing the US and Europe. And as a result of its refusal to back the embargo, Iran is quickly becoming the latest hot zone in the New Cold War.But it's not the only one…
The African tug o' war
Determined to maintain a strong presence in Africa, in 2006 the US established military relations with 54 African nations. Dubbed AFRICOM (or USAFRICOM), it's the newest of nine unified combatant commands the US armed forces have set up worldwide.
AFRICOM was established as a not-so-subtle message to China that America would not simply lie back and allow the Chinese to gain control over the continent's abundant natural resources.
And with good reason: In 2004 – for the first time ever – US oil imports from West Africa exceeded those from Saudi Arabia.
By 2010, America was importing 1.8 billion barrels of oil from Nigeria, Angola, Algeria, Congo, Gabon, and Cameroon… while only receiving 1.1 billion barrels from the Saudis.
Now China is competing directly with the US for African oil.
By 2009, Chinese trade with Africa surpassed the US's – and now, according to Newsday, over one million Chinese experts are spread out over 40 African countries to facilitate the exploration of resources.
This action was backed by an investment package of over $100 billion in 2009, with trade between China and Africa surpassing $100 billion by 2010.
Clearly, China means business in Africa, which poses a major threat to America's energy interests.
This has frightening implications for the rest of the world as well. Crude supplies are likely to tighten as China locks up more and more of the world's untapped conventional oil, effectively redirecting it off global markets.
At the same time, though, the specter of rising oil prices is opening up exceptional profit opportunities for investors who know where to look and are willing to act now.
We're still in the early stages – the perfect time to join this up-and-coming bull run because…
China's ravenous appetite
for oil will only get worse
You really can't really blame China for trying to secure as much energy as possible.
- They have the world's largest population, 1.34 billion strong.
- Many of their people are rapidly moving up the economic ladder, which inevitably leads to more energy consumption.
- In 2011 (the last year data are available), their oil consumption jumped from 8.2 to 9.4 million barrels per day. That's over 14% in just two years.
And it's likely to go much higher.
Steven Kipits, an analyst who heads the New York office of energy business consultants Douglas-Westwood, warns that China could consume up to 40 million barrels per day by 2022.
(That's more than double the US consumption of petroleum products, which was over 18.8 million barrels per day in 2011, according to the US Energy Information Administration.)
Adding fuel to the fire in this battle for world oil supremacy is another sobering fact…
Oil-producing countries are
exporting less oil every year
Eight of the world's top 10 oil suppliers are producing less oil every year. Worse – for the countries that rely on oil from these countries – less of this oil is making it to the market.
The following table provides a stark illustration…
|Top Global Oil Suppliers: Four-Year Production and
Export Changes (thousand barrels per day)
As you can see, six of the above countries have suffered significant drops in production from 2006-2009, and seven have curtailed exports during this period.
But this is nothing compared to what these figures might look like in a few years.
You see, many of these countries' oil fields are aging, and the oil they hold is extracted using old-fashioned technologies. For harvesting easy-to-get-to light sweet crude, these old technologies are fine… but not for the more challenging deposits.
Unfortunately, easily harvested oil is quickly running out.
That means unless the operator – in most of these countries, that's the government – invests huge sums of money to update infrastructure and implement recovery and enhancement techniques, these old fields will continue to be less and less productive.
In April 2011, the International Monetary Fund (IMF) predicted a 90% increase in oil prices within the next five years, due to reduced growth in global oil supplies.
Here's another important factor…
OPEC nations have to subsidize
domestic oil and gas… or else
Countries like Venezuela, Kuwait, and Saudi Arabia have boxed themselves into a corner by using oil-export profits to heavily subsidize domestic gasoline.
In March 2011, government subsidies allowed citizens of these countries to buy gasoline for between 6 and 81 cents per gallon. And – to make sure their people stayed happy – they also used oil-export profits to fund massive social programs.
But now – with oil production down and likely to continue dropping – the only way OPEC countries can maintain their government largess is by raising export prices.
In other words, $5+ per gallon gasoline is baked into the US's future.
Granted, a sharp increase in crude prices will cost every one of us dearly. But there's also the opposite side of the coin to consider: opportunity.
Higher prices mean well-run oil producers' profit margins will rise considerably. And for conservative investors, putting their money into oil majors will certainly yield consistent returns.But if you're aiming for more than just a few-percent yield, there's another kind of energy company you should take a look at…
Small-caps: The road to
real wealth in energy
Think you can double your money with, say, Exxon Mobil?
Good luck. This behemoth has a market cap of $406.89 billion and a stock price of $86.33 (at the time of this writing). For it to give you triple-digit returns any time soon, it would need hundreds of billions of dollars in growth.
Small-cap energy companies, on the other hand, can double or triple their profits very quickly… and reward early investors with huge gains.
Take Africa Oil (V.AOI).
After conducting an extensive analysis on this small Canadian oil and gas explorer, my team and I decided to issue a buy recommendation in May 2010, when shares were going for C$0.92. That recommendation went to subscribers of our advisory, the Casey Energy Report, as well as to the viewing audience of BNN, where I was interviewed about the company.
At the time, it had a market cap of C$64.6 million.
On Feb. 22, 2012, 21 months later, I advised subscribers to close out their positions for a 145% gain. Its market cap that day? Over C$400 million.
And while we played it conservatively by locking in these gains – because in today's volatile markets, it's important to secure profits – the stock went on to far greater heights, breaching over $11 a share three months later!
Then there's BlackPearl Resources (T.PXX, formerly Pearl Exploration and Production Ltd.). Subscribers who got in this small-cap heavy oil producer when I gave the green light in September 2008 picked up shares for C$1.00 or less, when its market cap was about C$126.8 million.
On June 18, 2010, less than two years later, I recommended closing our positions at C$3 or better for a 200% gain. The stock's market cap that day? A cool C$783.3 million.
That's the kind of profit power the right small-cap energy stocks can have. And that's not only true for oil companies…
Natural gas – America's big gun in
the energy cold war
Just a few short years ago, America was suffering from a severe shortage of natural gas, despite having colossal amounts of underground reserves.
"Fracking" involves forcing a water-based solution mixed with sand into a well until the rock around the well bore cracks, opening up pathways for the gas trapped within the rock to flow up to the surface. Directional drilling increases exposure to shale layers by boring through the shale formations horizontally.
Most of that gas, trapped within masses of shale rock miles beneath the surface, couldn't be extracted with conventional drilling techniques.
But today these resources are far more accessible, due to breakthroughs in "fracking" and directional drilling.
In fact, these technologies could enable producers to harvest 92 years' worth of natural gas, based on the 2010 rate of consumption.
All this newly recoverable gas is creating two profit opportunities few investors are aware of…
Fracking and directional drilling have opened up vast reserves of natural gas – in fact, they have procured more supply than the US needs for its own consumption.
Back in March 2010, I wrote an analysts' report on European shale gas – the first one ever written, to my knowledge – that alerted my subscribers to under-the-radar profit opportunities in Europe's budding unconventional oil and gas industries.
At this time I recommended a little-known European shale gas producer, Realm Energy International, which gave us a profit of 364% in just under eight months.
Two years before that, I recommended a private-equity-backed shale gas explorer in the UK, Cuadrilla Resources, which netted us a 620% profit in just 16 months.
This has a caused a massive glut of gas in storage and a 50% drop in prices since January 2011 (in fact, I warned Casey Energy Report subscribers years beforehand that there would be a significant drop in natural gas prices).
Natural gas prices are now too low for most producers to economically drill new wells, which will drive some of these producers out of business.
But you know the old economists' adage: The cure for low prices is low prices.
That means the decreased production will inevitably result in a supply shortage of natural gas, which in turn will cause prices to rise… and that's where your opportunity lies.
Right now we're watching several companies that we think will lead the pack once natural gas prices turn around. And when they do, these companies will reward early investors with gains that could be life-changing.
One of these companies is making a global push to increase production levels of oil and gas, including exploratory drill programs totaling over $100 million that encompass over 300 square kilometers in Indonesia.
This is the second time the company has taken on measured exploration risk. The first time was wildly successful – it caused share prices to skyrocket from single to triple digits several years ago. Now prices are down in large part because investors don't want to wait for current exploration efforts to pay off.We're convinced these investors are extremely short-sighted, and we're equally convinced that current management will parlay these expenditures into significant rewards.
As the natural gas market turns around, producers will be scrambling to enlist the help of oil and gas service companies – the firms that actually get their hands dirty doing the drilling and fracking. (Most oil and gas producers don't have their own drill rigs, nor do they employ their own drillers.)
And while natural gas producers are currently facing a declining market, the oil shale industry in North America is booming. As a result, oil and gas service companies are very busy.
And they will get much busier when natural gas inventories drop and prices rise – as they inevitably will. When that happens, gas producers will be scrambling to hire these service companies, which will allow them to pretty much demand any fee they want since they'll have more business than they can handle.
That's why we're getting in position to take advantage of heightened demand for oil and gas service companies right now.
Casey Energy Report subscribers have already begun to see profits: On February 23, 2012, we realized a 50% gain from one service company in just three months.
But we're really just getting started. Right now we have our eyes on two oil and gas service companies that are poised to yield solid short-term profits – and far greater gains within the next few years.
One of them is on the verge of being the next Halliburton – one of the largest providers of oil and gas services in the world. It's done over 6,000 fracking jobs in the last three years alone and is expanding operations all over the globe, with operations currently in Kazakhstan, Algeria, Canada, and the US.
At the time of this writing, the company was trading at around 8 times earnings – the second-lowest P/E ratio of its peers. And it pays a dividend. With all that going for it, we consider the stock an excellent value and are confident it will reward those who buy now.Another "unpopular" energy sector we're watching is…
Uranium: A hated (but necessary) weapon
in the New Cold War
After the Three Mile Island accident in 1979, nuclear power became one of the most reviled energy sources in the US.
This national aversion to uranium is what led contrarian investor Doug Casey – founder and chairman of Casey Research – to consider investing in the sector. With the US's growing demand for power and declining energy supplies, he figured uranium demand would come back… with a vengeance.
After the earthquake and tsunami hit Japan's Fukushima Daiichi nuclear power station, it seemed as though the world was turning away from nuclear power. But in reality, the powerhouses behind nuclear growth barely blinked.
While Germany decided to shutter its nine reactors in the wake of the disaster, India, China, the US, and other countries will more than pick up the slack. Together, they have 561 new reactors under construction, planned, or proposed.
But Doug never invests on assumptions, so in 1998 he conducted a careful analysis of the production, inventory, and consumption of uranium worldwide to ensure his hypothesis was ironclad.
After his analysis, he was more convinced than ever that uranium was the contrarian play of a lifetime, so he urged his subscribers to buy three particular small-cap producers.
Within two years, these companies paid those who took his advice huge rewards:
- 1, 351% on Paladin Resources
- 205% on Strathmore Minerals
- 397% on Cameco
Fueled by a surge in worldwide demand, for the next 12 years uranium prices skyrocketed as well, shooting from $8.75/lb at the end of 1998 to closing out 2010 at $62.25/lb (it was a wild volatile ride, with uranium hitting $136/lb in June 2007).
During the same period, uranium production took off, from 35,000 tonnes in 1998 to 56,663 tonnes in 2010 – an increase of 62%.
And while the 2011 Fukushima nuclear accident in Japan took the wind out of the sails of the uranium market, the supply-demand picture for yellowcake is still strong.
In fact, the World Nuclear Association says demand will rise for decades…
As you can see, there's already a huge gap between primary uranium production and reactor uranium requirements. According to the World Nuclear Association, production from world uranium mines now supplies only about 75% of the requirements of power utilities.
The only thing filling that gap now is secondary sources, like stockpiled uranium and down-blended uranium from old nuclear warheads.
That's why it's all but certain that once again the uranium sector will come roaring back.
And consider this:
- In 2011, the US imported about 91% of the uranium needed to power its 104 reactors from foreign sources, including unreliable – and sometimes hostile – countries like Russia and China.
- Russia – the former archenemy of the US – accounts for about 33% of all imported uranium. Most of that comes from dismantled nuclear warheads in a deal called "Megatons to Megawatts," which powers half of America's nuclear reactors, accounting for 10% of the nation's electricity production. This arrangement allows the US to get uranium at below-market prices, but it ends in 2013… and Russian President Vladimir Putin is nearly certain not to extend it because he knows he can get much more money by selling this uranium on the open market. The result: our former Cold War nemesis will force us to pay much more for the uranium we need to help power our utilities.
- Making matters worse, the US's uranium needs will only grow: five new reactors are slated for completion by the end of the decade.
And this is just the US I'm talking about.
Let's take a look at China: Right now the Asian giant has 14 reactors in operation, with 26 more under construction, 51 planned, and another 120 proposed.
Other countries, like India and Saudi Arabia, are also charging ahead with nuclear-power programs, which will add even more pressure to uranium supplies.
And when you consider there's barely enough uranium being produced to meet today's global demand, it's clear uranium prices are destined to rise, perhaps dramatically.
Right now, we have two uranium producers with great management and excellent track records in our Casey Energy Report portfolio. As of April 23, 2012, our total position gain on one of these companies was 33.6%, the other 292%.
It wouldn't surprise us if the latter quadrupled from here. In fact, back in 2009, that stock gave us a 13-bagger – a 1,300% gain – in just 10 months.
The company's president and CEO is one of the brightest young executives in the natural resource industry. He's bringing new mines into production in Texas and Paraguay, and recently started a new venture in Brazil.
We'll tell you all about him and his outperforming company in Casey Energy Report.
I travel to the front lines of the
New Cold War to find the best energy plays
In the course of any given year, I'm on the road for over 300 days. I've journeyed to Kurdistan, Iraq, Kuwait, and other countries in the Middle East, as well as most of the countries in Africa and other hotspots in the New Cold War to find – and verify – fast-moving energy plays with the potential for extraordinary profits.
I grill management with tough questions to ensure their rosy press releases are backed by facts… I interview geologists to determine how solid their feasibility studies are… I spend time with locals to ensure there isn’t significant opposition to a project that could torpedo operations…
In short, I do exhaustive fact-finding – in person – before recommending a company to Casey Energy Report subscribers.
This boots-on-the-ground research is what allows me to find plays like…
- Cuadrilla Resources… a 620% return
- Africa Oil Corp… a 145% return
- Realm Energy… a 364% return
- Simba Energy… a 125% return
My success hasn't gone unnoticed. Movers and shakers in the energy industry – like investment legend Rick Rule, founder and CEO of Global Resource Investments, and Keith Hill of the Lundin Group – often seek my advice.
The media seek me out as well – I'm a regular commentator on the Business News Networks, Canada's largest business TV network; I've appeared as a guest on The Money Show; and I have been quoted in The Globe and Mail, Forbes, International Business Times,and many other well-known publications.
The reason my expertise is so sought after is because of the nature of energy sector investing. As you've seen, there are elephant-sized profits out there for those who do their homework. But in order to realize these gains for your portfolio, it's critical that you understand that energy stocks are volatile.
But this is a good thing – after all, this volatility is what gives us opportunities to buy on dips and enjoy big run-ups.
There's nothing I love more than spotting a profit opportunity that flies under the radar of the Wall Street crowd. And as you've seen, it's something I've been doing consistently for years.
I credit much of my success to my experience as a math teacher…
My transition from teacher to
energy investment strategist
When I was in my early twenties, I taught post-secondary math and calculus.
This was in Vancouver, British Columbia, which, as you may know, is the home of many small mining outfits. One day, an executive from a nearby mining firm asked me to do a mathematical analysis on tungsten.
At the time I knew little about this metal, but over the next four months I devoured everything I could find out about it – where it was found, how much it cost to produce, what the production process was, and so forth. I also compiled data on every tungsten mine – even mines no longer producing.
When I completed my findings, I was convinced that speculating in undervalued companies that produced tungsten would be highly profitable… so I bought shares in a few firms.
These speculations started out badly – in fact I was down 45% after three months or so – but I was completely convinced my analysis was accurate and that I would profit if I gave my speculations enough time.
And boy, was I right –15 months later, I exited the trade with more money than I made in my entire career as a math teacher. But more important than the money, I realized that resource investing was my passion and that I had to follow it.
I also realized I needed a way to speed up the process of analyzing companies, so using my mathematical abilities; I developed an algorithmic software program that cut the time it took me to run calculations in half.
Now I use this program to help me separate companies worthy of investment from firms that may look good at first glance but are best avoided. It also helps me determine the best buy-in prices to recommend for companies that make the cut.
As a result, Casey Energy Report subscribers get to choose from only best of the best energy investments.
A 1,500% winner
Back in 2008, my software program helped me find a tiny uranium miner that was selling for 25 cents a share. It also had $13 million cash on hand – a lot for a company that the market was valuing at only $17.6 million.
It seemed to me that this company was severely undervalued for all it had going for it… so I bought some shares and recommended that my Casey Energy Reportsubscribers do the same.
Within two months, the stock doubled and ultimately shot up to over $4.00 a share – leaving subscribers holding a 1,500% gain.
My software also put me on the trail of other stocks I mentioned earlier, including Africa Oil, BlackPearl, and Cuadrilla.
And as the Cold War over energy intensifies, I expect to unearth many more high-profit energy plays for my subscribers.
So, now let me show you how to test the Casey Energy Report, completely risk-free.
Less risk, more rewards:
Try the Casey Energy Report today
No one likes risk, but sometimes it is necessary to accept a little in order to have a great shot at outsized rewards.
However, there's no risk for taking the Casey Energy Report out for a test-drive today.
My 90-day, no-questions-asked guarantee ensures it.
In fact, cancel for any reason whatsoever in those 90 days – or no reason at all – and we'll cheerfully refund every penny.
I'll go one step further:
Even if you miss your 90-day window and cancel after the trial period is over, we will still give you a pro-rated refund on the rest of your subscription.
Yes, I'm that confident you'll stick with us once you see the possibilities the junior energy sector is offering you.
I don't know what more we could do to put your mind at ease.
So, how much does a subscription to the Casey Energy Report cost?
The list price for this premium service is $995 per year – which is more than fair, considering what you can make from just one recommendation.
But I'll meet you halfway here, too. For a limited time, I'm offering you one full year of the Casey Energy Report for just $749… that's 25% off the list price.
Or you can take advantage of our quarterly auto-bill option, which will only set you back $248.75 for your trial period. Both options are available on our order form.
And, as I said, if you're not satisfied, you can cancel within 90 days and get all of your money back. Cancel after that, and you still get a pro-rated refund.Click here to get started right now
…or read on below.
The Casey Energy Report Will Not
Only Make You Money…
It Will Make You a Better Investor
Every month, the Casey Energy Report team and I put together a detailed report on our "energy sector of the month."
We're not one-trick ponies, so our research is about much more than oil. We cover all sectors of the energy complex, as each has the potential to reward you with outsized gains.
Every month, you'll get…
- An in-depth feature article about our "energy sector of the month" – past articles have included the following topics:
- North America's natural gas conundrum
- Canada's oil sands
- The coming energy crisis
- The five new frontiers of oil exploration
- Thriving coal demand
- Israel: a future oil and gas magnate?
- Behind the scenes. We show you how we calculate the efficiency of an energy resource… the criteria we use to determine whether a company is undervalued… important technical indicators that can tip you off to early profit opportunities… and more.
- Company analysis and recommendations. Every month we dissect one or more companies in a certain sector to see which ones show the most promise and when is the best time to get in for maximum profit.
- Sector updates. Our assessment of the current state of the various energy markets – from oil and gas, to coal, to uranium, to renewable energies – and their influence on our portfolio.
- The Casey Cash Box. Companies we like, but that are either too small or too risky to make it into our list of official recommendations (a few of our more adventurous subscribers have made sizable gains with some of these stocks).
"Consider me to be a
"Keep up the great work and consider me to be a permanent member. In fifteen years around the investing communities, this is unique from a newsletter service. There is no way in my right mind that I would go elsewhere."
– Gilles L.
"More detailed information... more winners"
"Other services have had some good plays, but not percentage wise as many as you. No one gives me the detailed info I get from the Casey group and specifically through [Marin's] CER and alerts."
– Peter D.
"Marin delivers a brilliant
"[Marin] quite frankly delivered a brilliant understanding of evaluations in [his article] An Energy Sector Analysis, something I never understood very well, but certainly you folks made the layman even understand this. I knew after reading that bit, I had stumbled on to an education, not just a stock-picking service."
– Joe G.
- Detailed quarterly updates. Every quarter, you'll get a full rundown of how our stocks have done, as well as our near-term outlook and recommendations (buy, sell, hold, take profits).
On top of all that, everyone who signs up for the Casey Energy Report gets a free one-year subscription to Casey Energy Opportunities, our monthly advisory for large-cap energy stocks, funds and ETFs… a $79 value.
As you can see, we're not just stock pickers.
As a subscriber to the Casey Energy Report, you actually get a solid education in all things energy.
And after a few months, I guarantee you'll know more about energy investments than most brokers do.
And even better, you can…
Get in on the next great bull market
ahead of the crowd
Obviously, a subscription to the Casey Energy Report is not cheap… but you could easily recoup your annual subscription fee with one winning play.
For $749 per year, you can set yourself up for the biggest profit opportunities since the advent of the gold bull market.
Profit opportunities such as the ones below, which have already turned every $10,000 investment into…
$24,500 on V.AOI in 21 months
$30,000 on T.PXX in 21 months
$145,100 on T.PDN in 19 months
$26,660 on T.HAT in 17 months
$160,000 on UEC in 25 months
And that's only the beginning; the biggest gains are still to come.
Let me remind you again what you'll get with a subscription to the Casey Energy Report.
- An in-depth feature article on the "sector of the month"
- Behind-the-scenes information on how to calculate energy efficiency… assess a company's value… and more
- Company recommendations with detailed descriptions and explanations on why we like them
- Sector updates – energy-market news and their impacts on our stocks
- The Casey Cash Box – tiny companies to invest in, for the adventurous investor
- Instant access to the Casey Energy Report portfolio, with company news, press releases, and up-to-date stock prices
- Instant access to subscribers-only special reports and articles on the Casey Research website
- A free one-year subscription to Casey Energy Dividends, our large-cap energy advisory
And keep in mind: If you don't like the Casey Energy Report, you have 90 days to cancel and get all your money back.
I promise you, no one will call you up at home and harass you about your cancellation. Your money will be refunded promptly and without delay, so you truly have nothing to lose.Click here to get started right now
I hope to see you soon!
Chief Energy Investment Strategist
P.S. Take the Casey Energy Report for a risk-free test drive today and I'll make sure you get my brand-new special report, The 2013 Energy Forecast.
Here you'll find an extensive analysis of the current state of the petroleum and uranium markets, as well as a comprehensive report that shows you how to analyze junior exploration companies (read this section carefully – it reveals the eight-point checklist we use to measure a company's odds of success).
You'll also learn…
- Why we're unlikely to replace fossil fuels with green energy anytime soon
- The real reasons behind skyrocketing energy production costs
- A little-known factor that will contribute greatly to increased energy export prices (it has nothing to do with oil wells, production costs, or Iran)
- How America can turn the tables on OPEC and become a major energy exporter
The 2013 Energy Forecast reveals many other important factors that will impact the energy sector this year. More importantly, it shows you how to leverage these factors to profitable advantage.
This invaluable investment tool is not available for any price, but it's yours free with your risk-free trial subscription to the Casey Energy Report.Click here to get started right now