Where Will The U.S. Get Its Oil?

The energy-rich, former Soviet republic has some of the largest oil and gas reserves in the Caspian Sea basin, producing 1.43 million barrels per day (bbl/day) in 2008. And as the giant Tengiz and Karachaganak fields are developed further, an additional 1.5 million bbl/day will be coming off the production line.
With the country holding 3% of the world’s proven oil reserves and the majority of its Caspian Sea holdings still unexploited, it’s no wonder oil companies – both major and minor – are flocking to it like moths to a flame.

Is the Future of U.S. Oil Really Secure?

By Marin Katusa, Chief Energy Strategist, Casey Energy Report

Two words that any oil company dreads to hear are “export duty.” Especially if the word “increases” or “introduced” is floating around there too.

So when Kazakhstan introduced an oil export duty to meet shortfalls in the national budget, the mood wasn’t exactly jovial.

On July 13, the Kazakh government brought back the tax that had been abolished during the financial crisis. A US$20 tariff will be levied on every ton of crude oil exported from the Central Asian nation. The hope: collect some US$406 million in additional revenue by the end of the year.

The energy-rich, former Soviet republic has some of the largest oil and gas reserves in the Caspian Sea basin, producing 1.43 million barrels per day (bbl/day) in 2008. And as the giant Tengiz and Karachaganak fields are developed further, an additional 1.5 million bbl/day will be coming off the production line.

With the country holding 3% of the world’s proven oil reserves and the majority of its Caspian Sea holdings still unexploited, it’s no wonder oil companies – both major and minor – are flocking to it like moths to a flame.

Of course, this new tax has everyone from Chevron and ENI, whose long-standing agreements have been unilaterally revised in effect, to the small-scale producers in an uproar. The move has been dubbed as the latest example of resource nationalism in Kazakhstan, analysts say, and the feeling is that the country seems to be taking its cue from Mother Russia.

There’s worry, too, that this is only the beginning of the end. There’s no guarantee to say that the tax will not rise as more and more oil begins to flow out of the country. And the thriving uranium industry might be next to get heavy taxes slapped onto it.

Bringing it back to an American context, the question of energy security rears its head yet again. Oil from Kazakhstan flows through two pipelines: one winds through Russia, the other through China. Not exactly the two countries you’d want controlling the taps of your oil supply.

Today’s realities – be they economic or security-related – mean that the natural shopping ground for U.S. oil are the Canadian oil sands in Alberta. According to the EIA (U.S Energy Information Administration), Canada remained the largest exporter of oil in April, exporting 2.486 million barrels per day to the U.S. The majority of these barrels come from the Canadian oil sands.

While protestors may get up their flags and launch advertising campaigns, technological breakthroughs mean the environmental impact from oil sands is far less than before. Canadian laws also protect the environment, ensuring that all disturbed land is returned to a productive state.

Carbon revenue, too, is reinvested into clean energy research, paving the way to the future.

As we wait on alternative energy sources to take center stage in world energy plays, the truth remains that oil and gas must power our lives. And for the United States, Canadian oil sands mean a secure and most of all, reliable, source of energy.

With Canada looking ready to pick up the slack from the Gulf, it’s worth knowing which companies operating in the Great White North are worth adding to your portfolio. These are the ones that combine the latest technology with good site locations and excellent cash flow. Their inclusion will benefit any portfolio and rake in some promising returns.

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Whether it’s Canadian oil sands, uranium, or viable green energies, Marin Katusa and his team make it their mission to find the best of the best junior energy companies for maximum profit potential. Read more about Marin and the new European “Cold War” that promises investors enormous opportunity.

Natural Gas Seen As Alternative To Coal

Natural gas is now back in the spotlight. The now plentiful from within our own borders fuel is environmentally friendly with half the green house emissions of coal, and as such is being looked at to replace coal for electricity generation in the U.S.

A decade ago natural gas was shunned because it was seen as supply unreliable leading to wild swings in the price.

New technology, however, has unlocked vast quantities of natural gas previously thought to be uneconomic.

Exxon Mobil’s recent announcement to acquire XTO Energy makes Exxon the biggest natural gas supplier (the market punished Exxon shareholders over the ensuing few trading days by clipping about 5 points off the stock’s price, an almost 7% haircut).

Natural gas could become one of the more reliable ways to play the green energy movement as an investment. After all, natural gas is economic WITHOUT massive government subsidies, something wind, wave and sun technology cannot boast.

The other promising area of green energy is geothermal energy; now becoming a reality in many places around the globe.

If you want an investment newsletter that will give you specific buy and sell advice on how to profit from green energy including not just wind, wave and sun but also natural gas and geothermal energy, then take a risk free trial look at the Casey Energy Report.

How to Make Money From Green Energy

I say, go green, recycle – CONGRESS! (throw all the bums out then re-elect Ron Paul).

Unfortunately, the only “green” energy plays that seem to be uneconomic with massive government subsidies – money that first has to come from your pocket or mine.

It makes sense for investor to seek out ways to profit from green energy, and many investment newsletters are touting this stock or that; but they all seem to be hoping that some stimulus money gets thrown their way to keep from going bust.

Here is the lowdown on profiting from green energy, courtesy of Casey Research.

Black Gold… Green Oil

By Marin Katusa, Chief Investment Strategist, Casey’s Energy Report

This summer, there’s been a flurry of new green announcements from the world’s major oil firms.  ExxonMobil, Chevron, Valero, Statoil, Marathon, and Sunoco have all thrown their hats into the green ring.

According to an article published September 19, 2009, in Newsweek:

The list [of Big Oil investors] goes on. And this time it’s the real deal. It’s not just that these projects involve bigger money… it’s that companies are actually beginning to think about alternatives not just as a tool for greenwashing (throw up a few solar panels here, sponsor a conference on wind energy there) but as real businesses that might turn real profits – or at least help make fossil-fuel production more profitable. The catalyst is that governments are moving to force industry to cut carbon emissions, creating a new “long-term regulatory reality” that favors alternative energy, says PFC Energy Chairman J. Robinson West. Meanwhile, President Obama’s green-stimulus efforts and China’s massive investment in alternatives have created a serious market for green technologies.

The fact that nations like Russia and Venezuela are pushing out big oil companies also gives CEOs an incentive to consider green alternatives. So does the fact that oil companies are among the world’s biggest energy users, and will ultimately need to offset emissions. “I believe the large integrated oil firms will eventually become major players – perhaps even the dominant players – in alternative energy,” says Don Paul, a former Chevron executive who now runs the University of Southern California’s Energy Institute.

Big Oil is taking a closer look at how [renewable energy]might be used to increase efficiency internally, or to free up increasingly profitable fossil fuels, like natural gas, for commercial sale. When you consider that the top 15 oil and gas companies have a market capitalization of $1.9 trillion, it’s clear that these firms themselves have the potential to be major renewable customers.

Oil companies are also taking a harder look at how to make their own business models work in the alternative sector. Companies like Chevron are capitalizing on geological expertise to build large geothermal businesses.

Big Oil is going to be an increasingly important investor in alternative energy. Venture-capital money has dried up. But with oil at $70 a barrel, the internal venture arms of the major oil firms are increasing the amount and percentage of investment going to alternatives. Historically, when Big Oil spends a dollar on research, it will spend many hundreds more to bring a product to market. If the new projects coming online this summer are any indicator, alternatives may soon be awash in black gold.

U.S. government subsidies into renewable energy are forming a green bubble. One that’s steadily inflating. But the catch is, only one alternative energy is currently economically viable before subsidies… and that’s geothermal.

That would explain the interest Big Business has in the sector.

  • Another member of the oil community, Statoil, has formed StatoilHydro, to focus on advanced geothermal development.
  • Google.org — the charitable wing of the search engine giant — has become the largest funder of enhanced geothermal research in the country, outspending the U.S. government.
  • Alcoa, the world’s largest producer of aluminum, is actively participating in the geothermal Iceland Deep Drilling Project (IDDP).

And then there’s the mining industry.

  • Lihir Gold has already used geothermal resources to build a power plant, which today provides green electricity for the company’s mining operation in Papua New Guinea.
  • BHP Billiton is currently investigating the potential for using geothermal heat in the Olympic Dam region of Southern Australia.

The smart money likes geothermal.

Investing in the growing green bubble could earn you very handsome returns, if you know which companies to choose. Marin Katusa, Casey’s energy strategist, does. Every single one of his 22 latest picks has been a winner, with gains from 44% to 860% – that’s a 100% success rate. To find out how you can profit from winner #23, click here.

T. Boone Pickens – From Oil to Wind Farms and LNG Vehicles

T. Boone Pickens is a legendary Texas Oil Man. Mesa Petroleum was how he built his first fortune. In his 80’s, T. Boone Pickens isn’t about to put himself out to pasture yet. He earned about $1 Billion in 2006 making big bets on commodities and equity markets heading BP Capital hedge fund.

I followed T. Boone back in the 80’s but didn’t hear much about him in the 90’s. Just yesterday I was reading about him in the latest issue of Casey Energy Speculator and this morning he’s on the home page of Yahoo!

What’s Picken’s all about these days? Well, heis about to spend $10 Billion building the world’s largest wind farm; enough power generation to equal 2 nuclear power plants.

His plan is to devote Natural Gas and more specifically LNG (Liquefied Natural Gas) to powering vehicles instead of power plants.

With the wind farm he isn’t trying to beat Al Gore at the green game, T. Boone Pickens expects to make money, as usual. He believes the business will generate at least a 25 percent return.

Not bad for an old guy, eh?

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