2 Reasons Every Investor Should Buy Canadian Oil

Today, we step back from the mess in the Middle East and take a look at why every investor should be buying Canadian oil stocks. You are receiving this email because you subscribed to Energy and Capital. [Click here]( to manage your e-mail preferences. [Energy and Capital logo] 2 Reasons Every Investor Should Buy Canadian Oil [Keith Kohl Photo] By [Keith Kohl]( Written Jul. 10, 2019 Canadian crude is the story you won’t hear about in today’s media. I’ll be the first to confess that I've been getting caught up in the headline hype recently. Last week, we [talked]( about how the escalating tensions with Iran threaten more than one-fifth of the world’s oil supply at the Strait of Hormuz. To be fair, it’s kind of hard to ignore the geopolitical chaos that reigns over the Middle East. I want you to look beyond that mess today. Instead, let’s focus on an oil boom that should be on every investor’s radar right now. If you’re like me, then your gaze immediately started to drift toward the Permian Basin. After all, it’s a little hard to dismiss an oil region that is now producing more oil than all but one OPEC member. Texas’ oil output has surpassed 5 million barrels per day, and it’s only going to head higher in the coming years. But let’s resist the temptation of the Lone Star State, if only for the moment. Truth is, there’s a small group of oil stocks that have beaten the performance of the biggest Permian drillers so far in 2019. And THEIR run is just beginning. Let me explain... Turn every $2 into $2,500 I just got off a conference call with the management of a little-known $150 million West Texas oil explorer. On the call, they revealed the discovery of $185 billion worth of oil under their land. This means for every one of this company’s $2 shares you buy, you’re buying $2,500 worth of oil. This is a recipe for massive windfall profits. [Here’s my full write-up and recommendation.]( 2 Reasons Why Every Investor Should Buy Canadian Oil Stocks To say we’ve become addicted to Canadian crude would be a sore understatement. Since 1980, our oil imports from Canada have grown from just 455,000 barrels per day to more than 4.4 million barrels! The fact that our thirst for Canadian crude has grown so dramatically during what is unquestionably the biggest oil boom in U.S. history should be telling. And yet most people don’t realize how dramatically Canada’s crude supply has evolved. Between 2009 and 2019, Canada’s oil output has nearly doubled. Of course, roughly 63% of Canada’s oil production was considered light oil a decade ago, with heavier oil accounting for the rest. By 2014, the ratio of light oil in the country’s production mix had fallen to 55%. Today, it’s down to half... and it’s only a matter of time before that gap widens further. This Could Replace Oil, Coal, and Natural Gas Within the Next 10 Years Late last year, a team of Army scientists discovered the secret to "endless clean energy." It's cheaper than oil, coal, and natural gas (NG) and also more efficient than solar, wind, geothermal, or any other alternative energy you could think of! With companies like Apple, Amazon, Google, and Facebook already investing billions of dollars in it, it could easily become the dominant fuel source on the planet in less than a decade. And there's [one tiny $4 company leading the charge]( in this energy revolution, which primes it for 1,587% gains! [Click here for the full story!]( Few areas have been hit harder by the U.S. shale boom than the Canadian oil sands. The flood of tight oil unleashed onto the market has put immense pressure on Canadian oil companies. Sure, we can take one look at the state of [Venezuela’s failing oil industry]( and truly see how bad things can get. Not only is Venezuela’s oil output heading toward zero, but it feels as if the 296 billion barrels of proven reserves it holds will never see the sunlight and stay buried underground forever. Canada, however, is a different story. Most people don’t realize that with 175 billion barrels of proven reserves, Canada holds the third-largest proven oil reserves on the planet. Virtually ALL of those reserves are found in the bituminous sands of Alberta. Look, I know the first picture conjured by most people involves the massive surface mining operations run by companies like Suncor — the ones that can be seen from space. Those are incredibly intensive — and costly — operations. In 2004, production from the oil sands breached the psychological benchmark of a million barrels per day. It took another decade to reach 2 million barrels per day. By 2027, production in the area will top 4 million barrels per day. But what everyone seems to forget is that 80% of the bitumen (think of heavy oil, with the same viscosity as molasses) in the oil sands area is too deep to be mined. In other words, the true wealth of the oil sands is in the companies that can utilize other, less environmentally intensive methods to extract the oil from Alberta’s soil. For us, [i]([n-situ recovery]( has always been the name of the game. Naturally, the veteran readers of our investment community have seen this transition coming for a long, long time. After watching Canadian crude prices bottom recently, one can’t help but take advantage of the situation. Today, the largest SAGD producer in the oil sands is Cenovus Energy (NYSE: CVE). In 2017, the company jumped at the opportunity to pick up ConocoPhillips’ interests in the oil sands; the move cost it nearly $18 billion. That move will pay off in spades for shareholders over the long run. So far in 2019, Cenovus has outperformed some of the biggest Permian Basin oil companies, including Pioneer Natural Resources. And even though it’s becoming more important for the heavy oil refineries in the U.S. Gulf Coast, the future of Canadian crude isn’t in the United States. It’ll be in China. We’ll talk about that next week. Until next time, [Keith Kohl Signature] Keith Kohl [[follow basic]@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](. [in-case-you-missed-it-banner-550]( Sometimes it Pays to Read the Small Print What would you do with a piece of $270 billion? Pay off your bills? Put a kid through college? Retire early? I trudged through thousands of pages of IRS regulations, dating all the way back to 1981, and uncovered something incredible... Hundreds of folks all over the country are collecting four- and even five-digit checks... up to 24 times a year. The American government has ORDERED regular payouts to everyday Americans like you... If you know how to ask. And it’s easy. [Click here to find out how to join them.]( Enjoy reading this article? [Click here]( to like it and receive similar articles to read! 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