Abandoned, but Not Forgotten

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Date: Fri, Sep 14, 2012 at 11:57 PM
Subject: Abandoned, but Not Forgotten

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Abandoned, but Not Forgotten By Keith Kohl | Friday, September 14th, 2012 You don't need to be an avid history student to know there are valuable lessons to be learned from the past. This is particularly true when it comes to the energy windfall raging across North America. As all our readers are well aware by now, natural gas has been slowly taking over the U.S. energy scene. This isn't the first gas boom to hit U.S. soil. One such bonanza happened more than 120 years ago in Indiana. The irresponsibility in developing the Indiana gas rush cost residents millions — perhaps billions — of dollars down the road... Advertisement Warren Buffett's Favorite Oil Stocks When Warren Buffett spent $34 billion to buy the Burlington Northern Santa Fe Railway, he was buying into the Bakken oil boom. His railroad now transports 20% of the 52 million barrels of oil produced in North Dakota's Bakken oil field... Here's a low-cost, low-risk way you can profit right alongside Uncle Warren.  A Bona Fide Gas Boom Back in the 1870s, a group of miners hit natural gas while looking for coal in Eaton, Indiana. They plugged the hole soon after and moved on, and it wasn't until a gas discovery in Ohio did they revisit their find... It turned out to be the largest natural gas field in the world at the time. Companies extracted roughly 40 billion cubic feet of natural gas in 1890. Drillers flocked to the area, rigs were set up, and pipelines were laid down. In the blink of an eye, towns were flush with cheap natural gas. (Sound familiar?) With such a massive oil and gas resource under foot, what could possibly go wrong? Lessons of a Wasteful Past The story of the Trenton Gas Field doesn't have a happy ending.  During the 25-year boom that followed the Trenton Field discovery, over a trillion cubic feet of natural gas and 105 million barrels of oil were produced. But it should have been much, much more. A great deal of the resource was terribly wasted... Dozens of torches were erected. They would burn day and night. An estimated 90% of the resource was used in these extravagant displays throughout the state: It was only a matter of time before the field's pressure dwindled. Without adequate pressure, the field's oil production ground to a halt: Drillers soon moved on, leaving a painful reminder behind: nearly one billion barrels of oil trapped underground. And thanks to the spendthrift practices used during the rush to produce natural gas, less than 10% of it ever made it to the surface. This led to a stark realization for both oil companies and investors alike: We're still sitting on a ton of oil. All that's left is to figure out is how to get it. Advertisement Mystery Man Collects $23,220 "Rent" Check Every Month A 66-year-old Texas man cashes a $23,220 "rent" check every month. The best part is the tenant is Wal-Mart... which means these checks can be expected to keep coming. You too can use this man's secret for receiving monthly "rent" checks from Wal-Mart. Click here.  No Barrel Left Behind No doubt you've heard of the tight oil plays that have been raging across the United States, particularly in the Bakken and Eagle Ford Formations. Wishful thinking aside, production from these shale plays can only reach so high. Their success can only take us so far. I don't want to pour more salt on the Peak Oil wound, but we must keep in mind that future supply won't come from discovering new giant fields. Instead, it may have to come from revisiting older fields — like the Trenton Field. Last month, I mentioned why Texas companies are doing precisely that. The drilling resurgence taking place is breathing new life into the Permian Basin. And we're not talking about a few barrels here and there... Six years ago, the U.S. Department of Energy pegged the amount of "stranded" oil resources from already discovered fields in the hundreds of billions: In fact, their estimate put more than 205 billion barrels of stranded oil in just six areas: California, Oklahoma, Illinois, Alaska, offshore Louisiana, and the Gulf Coast. What's more is that up to 43 billion barrels are recoverable through CO2 enhanced oil recovery (EOR) technology.   That's ten times more than the USGS currently believes is technically recoverable in the Bakken Formation! It's safe to assume companies will be going after this oil hand over fist. But when it comes to recovering these sources, some companies are better at it than others... Denbury Resources (NYSE:DNR) is the second largest EOR producer in North America, with production growing at a 30% CAGR during the last twelve years. The company certainly isn't short on resources. It has more than a billion barrels of potential reserves: Over the last three months, Denbury's share price has rallied nearly 25%. The company currently trades with a P/E just over 10. In addition to the companies mastering EOR, real growth will be found in those companies improving the recovery technology. My colleague Jeff Siegel has already done the grunt work for investors when it comes to sniffing out the latest game-changing EOR technology... This company has developed a brand-new way for investors to profit on the long-forgotten fields of the past. Their stock will flourish as crude oil prices blow past $100 a barrel in the coming days.  Until next time, Keith Kohl @KeithKohl1 on Twitter A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page. I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles When OPEC Fails... Saudi Oil Demand Welfare Nation Unconventional Energy Investments Recently... All Roads Lead to Gold Unavoidable Crisis about to Strike Riyadh Thorium Nukes Energy and Capital's Weekend Edition End of the Cheap Barrel

This email was sent to jorgeus.george@gmail.com . You can manage your subscription and get our privacy policy here. Energy and Capital, Copyright © 2012, Angel Publishing LLC, 1012 Morton St, Baltimore, MD 21201. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription.

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The Bomb Aimed at Saudi Oil Fields

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From: Energy and Capital <eac-eletter@angelnexus.com>
Date: Tue, Sep 11, 2012 at 11:25 PM
Subject: The Bomb Aimed at Saudi Oil Fields

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The Bomb Aimed at Saudi Oil Fields By Keith Kohl | Tuesday, September 11th, 2012 There's a crisis on the horizon. For some, it's too much doom and gloom to have with their morning coffee. Others either don't see it coming or are in denial. Quite frankly, we don't see how anyone doesn't see this looming crisis...  The problem stems from a crucial event in the United States over forty years ago in 1970  — the year we became a net importer of oil. It wasn't due to some evil conspiracy by Big Oil, and it certainly wasn't a fluke. Simply put, our crude oil production topped out at slightly over ten million barrels per day back in November 1970. Eventually, all oil exporters will have to come to grips with this problem — and it'll come with a severe penalty for some. Advertisement Have You Heard of "Black Solar"? A tiny $1.00 tech firm in Upstate New York just did the impossible... They unlocked the secret to harnessing solar energy by doubling the power output and cutting the cost in half. This technology is so efficient and affordable, electric companies are already shaking in their boots. Before the first big ticket contract comes, doubling the share price, click here to see why it's all the rage.  We've talked before about how this crisis is affecting Mexico. Ever since the Cantarell oil field peaked, the world has been watching the clock for panic to strike. As you know, roughly 40% of the government's budget is dependent on oil revenues. And Mexico's not the only country relying heavily on oil and gas for revenue... Russia, the largest oil and gas producer in the world, depends on these exports for 50% of their budget. And in both Iran and Venezuela, fossil fuel exports account for about 60%. But as Brianna Panzica pointed out this past weekend, there's one country these others don't hold a candle to... Dropping a Bomb on Saudi Oil Fields The problem has never been that the Saudis are running out of oil. We all know they have enough crude in the ground to last a good long while: But the rising domestic consumption for top OPEC producers is throwing a wrench in the works... Imagine the outrage from the Saudi populace when they have to pay more than a buck per gallon. There'll be riots on the streets of Riyadh. Now, I don't think the Saudis take cheap oil for granted. In fact I would bet they're more concerned about it than anyone else on the planet. And considering how closely-guarded OPEC data is today, I doubt the outside world will ever know the truth about their oil fields. Advertisement America's Biggest Oil Discovery 152 million barrels of light, sweet crude were pumped out of this North Dakota oil field in 2011. This year, it could be 190 million barrels. It's no wonder that profits are surging for the companies that pump this oil... One $8 company will grow profits by 500% this year. And its stock price is likely to double. Click here to learn more. That said, the Saudis will try anything to curb their own demand, something they've had great success with thus far. The Saudis' increasing consumption is leading them down the familiar road of alternative energy. Saudi Arabia plans to have up to 16 reactors operating within the next fifteen years, adding 17,000 MWe of power generation to the mix. With an average cost of $7 billion per reactor, Saudi Arabia's nuclear dream comes with a price tag over $100 billion. According to the numbers at the World Nuclear Association, there are only three other countries in the world with more proposed nuclear reactors: Russia, India, and China. The Saudis are also hoping to tack on an additional 25,000 MWe from wind. But it's their solar ambitions that investors can really take advantage of over the next decade... The Saudis plan to invest $109 billion in solar electricity during the next twenty years, adding 41,000 MW of solar capacity. Twenty years from now, having access to cheap energy will be a luxury few countries will boast. And that's why the real value here will come from technology that can dramatically cut costs. Why is this so valuable to the Saudis? If successful, their $109 billion solar investment will free up half a million barrels of oil per day for export. That's enough to have the Saudis clamoring for more solar — and willing to pay anything for better technology. That's why we're keeping this company on our radar. It's developing a new solar technology that can double output and slash costs in half. You'll want to invest in this game-changer while the stock is still trading for under a buck. Until next time, Keith Kohl @KeithKohl1 on Twitter A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page. I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles Thorium Investments When OPEC Fails... Drilling the Bakken Formation Peak Oil Isn't Real Recently... Energy and Capital's Weekend Edition End of the Cheap Barrel THIS Could Set Off World War III Taking Sides Is Costing You Money Is OPEC Counting Their Barrels Too Soon?

This email was sent to jorgeus.george@gmail.com . You can manage your subscription and get our privacy policy here. Energy and Capital, Copyright © 2012, Angel Publishing LLC, 1012 Morton St, Baltimore, MD 21201. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription.

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End of the Cheap Barrel

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From: Jorge Saguinsin <jorgeus.george@gmail.com>
Date: Sat, Sep 8, 2012 at 10:17 AM
Subject: End of the Cheap Barrel

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From: Energy and Capital <eac-eletter@angelnexus.com>
Date: Fri, Sep 7, 2012 at 11:09 PM
Subject: End of the Cheap Barrel

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End of the Cheap Barrel By Keith Kohl | Friday, September 7th, 2012 Dad Joiner would be rolling over in his grave if he learned how things turned out for the U.S. oil industry. Born Columbus Marion Joiner in 1860, the man has a very special place in Texas history books. After failing to strike oil twice, thrusting him deeper into debt, it was his Daisy Bradford No. 3 well that solidified his fame in October 1930. Soon after, more wells struck Texas gushers... and the birth of the East Texas oil field was on its way to becoming the largest oil and gas field in the United States. At the time, we were used to dominating the world's petroleum industry. Just five years before Joiner's success, the U.S. accounted for 70% of the world's total crude production. Here we are 82 years later and Dad Joiner's well is still pumping... Things were simpler back in those days — and much, much cheaper. Advertisement The Key to American Energy Independence This $8 oil company is one of the keys to American energy independence. It helped boost production at a little-known oil field to 152 million barrels of oil in 2011. Production might hit 190 million barrels this year... Investors are about to double their money on this stock — again. Get the details here.  The End of Cheap Oil You've probably heard of the energy returned on energy invested ratio, or EROEI. Back in Joiner's day, it took one barrel of oil to discover and produce one hundred barrels. That's what we consider cheap oil. Unfortunately, the ratio has dropped incredibly since then. And more to the point is how easily $100 has become an acceptable cost for a barrel of crude. Coincidentally, the triple-digit benchmark just so happens to be the latest "comfort price" for OPEC (never mind the fact that their comfort price has doubled in less than six years). Why is that? Simply put, we're becoming too accustomed to unconventional oil. A week ago, my colleague Jeff Siegel mentioned how Shell was craving Arctic oil. We've talked countless times in these pages about Canada being our largest source of foreign oil — and yet more and more Canadian crude that's flowing into the lower 48 states is coming directly from the Alberta's bituminous sands. The scary thing is when it comes to the quality of tomorrow's oil supply, bitumen isn't even the worst of it. With today's campaign climate, there's heightened talk of energy independence that involves producing kerogen from the Green River oil shale (though we have to take this one with a grain of salt). For more than a hundred years, politicians have used "the trillions of barrels of oil in the Western U.S." as a talking point. And listening to them, it seems like economically developing our oil shale resource has always been just around the corner. Advertisement Small Device Increases Oil Production 1,000% Believe it or not, most oil companies are able to extract no more than 20%-30% of the oil in their reserves. The rest is just too difficult to get to. But not anymore... Thanks to one small technology, companies can now reach this oil. In fact, some of them are already increasing production as much as 1,000%! Find out how right here.  But we can forget about the giant fields we rely on for much of our supply. Because although they make up 60% of the world's total crude production, we're simply not discovering them anymore. The "huge" oil discoveries we read about in today's headlines are located in the most barren landscapes, or found miles below the ground under a thick layer of rock and salt. Truth is the transition toward smaller, unconventional oil fields is taking place right now... A Second, More Profitable Transition Five years ago, I told readers the end of cheap oil has one positive consequence: the greatest investment opportunity of our generation. Now there's a second and even more profitable opportunity on the horizon. You see, the problem with replacing oil is greater than simply finding a new, inexpensive source of fuel. Believe me; that's the easy part of this upcoming transition. We already have cheap fuel at our fingertips (click chart to enlarge): The difficulty, as you've probably guessed, is supplanting crude oil from atop the transportation sector. There are well over 150,000 gas stations across the United States. And while that number may be slowly declining, oil still accounts for 93% of U.S. transportation. The transition away from oil will happen whether or not we're ready for it. It's inevitable. Just consider the billions of dollars we will need to spend on our rapidly aging oil infrastructure. More than half of the oil and gas pipelines in the U.S. today were built more than 60 years ago — and we have enough pipelines to circle the planet 100 times! Now imagine how profitable this energy shift will be for early investors... Here's one way you can take advantage of it. Until next time, Keith Kohl @KeithKohl1 on Twitter A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page. I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles Alaska Seeks Out Shale Oil Drilling the Bakken Formation Peak Oil Isn't Real The Easy Way to Increase Oil Production Recently... Taking Sides Is Costing You Money Is OPEC Counting Their Barrels Too Soon? Energy and Capital's Weekend Edition Not a Dry Hole in Sight Peak Oil Puts Russia on High Alert

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