The End of an Energy Era

Our in-house natural resource analyst, Sean Brodrick, is hot on the heels of a fundamental shift that’s currently taking place in the energy sector. Sean is calling this a “New Fuel Revolution,” and based on what he’s told me so far, it could very well be one of the most profitable investment stories of our lifetimes. What follows is the first in an urgent series of special guest columns that Sean is writing this week in order to share with us all the things he’s discovered. I’m sure you’re going to enjoy Sean’s research as much as I do! — Nilus

As a natural resource analyst, I spend a lot of time looking for the next big trend … the commodities that are most in demand … the technologies that are changing the way we produce these resources … and off-the-radar companies that stand to gain the most in the process.

I’ve uncovered my fair share of profitable stories in the past — from the beginning of the last decade’s gold and silver rush to a temporary boom in the uranium market. And now I’m seeing the puzzle pieces start to fall into place for what should be the next big thing.

In fact, that is what has me convinced that we are on the verge of one of the most important resource revolutions in history.

I realize that “revolution” is a strong word. But as Dr. Weiss pointed out in his column yesterday, we HAVE seen our fair share of revolutions over the last 150 years or so — especially in the energy sector.

This revolution I’m talking about now is no different.

Reason: While crude oil has reigned supreme for most of the last century, a new type of fuel is rapidly going to gain prominence as our global economy moves deeper into the 21st century.

More importantly, I believe that those of us who recognize this sea change now — while it’s still in its early stages — stand to profit handsomely.

Later this week, I’ll tell you exactly how to participate in this “New Fuel Revolution” … and what companies are the best investments right now.

[Editor’s note: Sean’s presentation — “How the New Fuel Revolution Can Make You Rich” — is going online this Thursday at noon eastern time. It’s free and no registration is necessary. Just be sure to click here shortly before Noon Eastern Time on Thursday, February 16!]

But first, I think it’s only fair to explain WHY the world needs a new type of fuel in the first place. You see,

The Grim Reality Is That Peak Oil Is Already Here …

I probably don’t need to tell you that, at about $100 a barrel, crude oil is already pretty darn expensive … especially with the global economy still reeling from the events of the last few years.

And yet, odds are good that crude oil is only going to get much MORE expensive from here on out.

After all, it’s getting harder and harder for companies to find new sources of the stuff!

That’s right — I believe the rate of global oil production is ALREADY peaking as new deposits become harder to come by … and more difficult and expensive to extract.

You see, the term “peak oil” doesn’t mean that there isn’t any more oil in the world.

It simply means that we’ve reached the point at which global oil production tops out, then starts to decline.

And thus, the basic law of supply and demand virtually guarantees that oil prices will continue to climb higher and higher.

Just Look How Desperate the Search for
New Oil Sources Has Become!

We ARE still finding some new places to look for oil.

For example, there’s a new oil rush going on in Eastern Siberia right now.

But don’t pack your bags for this “boomtown” just yet!

The area’s Arctic wilderness makes Texas look like paradise. It’s covered in desolate forests that contain just as much ice as wood … populated by ravenous bears and wolves … and the nearest human settlement is 250 miles away from the place where workers are trying to drill for oil.

Oh sure, the workers will get the occasional day off for bad weather … but only when the mercury hits the neighborhood of -70 degrees Fahrenheit.

Obviously, the Russians aren’t looking for oil in Eastern Siberia because they enjoy the “exotic” climate.

They’re looking for oil in this No Man’s Land of Permafrost because it’s the last place left to find new supplies of oil.

And desperate operations like this are an obvious sign that all the “easy oil” has already been pulled out of the ground.

Meanwhile, the Higher Prices Climb,
The Less Viable Crude Oil Becomes …
And the More Tense Our World Gets!

With gasoline prices pushing $4 a gallon already — and headed to $5 a gallon by this summer — even the current cost of this form of energy is an obvious burden for people all over the world.

But while high energy prices are bad enough at the household level, they could have disastrous consequences at the national level.

For proof, look at the recent headlines about Iran’s nuclear program … and the resulting threats about Western sanctions against Iranian oil.

In the middle of that scuffle, Iran’s Oil Minister Rostan Qasemi warned that world oil prices could soar to $200 a barrel.

And then Iran started making a list of European countries that would be first in line to feel the squeeze!

The trouble isn’t just limited to Iran, either.

Recently, in Nigeria, a 4,000-barrel-per-day oil pipeline — owned by Italian oil giant Eni S.p.A — ruptured and caught fire.

Militants claimed responsibility and rebel supporters danced while flames clawed at the sky behind them!

Oil’s political power has always been obvious. But now, in the age of peak oil, that power is quickly becoming absolute.

An increasing number of countries are already reducing their exports. So if a country like Iran or Libya or any other that despises us decides to cut us off, the availability of other sources is dwindling.

Take a look at this chart of the world’s net exporters of oil, and the rate at which their exports have changed in a recent five-year period …

As you can see, those with rising exports (in green) tend to be countries that dislike us.

Meanwhile, those exporters with rapidly falling exports (in red) include Mexico, Norway and … gulp … Saudi Arabia, the world’s largest oil producer.

That’s right, even Saudi Arabia’s oil exports are falling fast because its young and growing population means a lot more demand right at home.

Bottom Line: Less Oil Is Being Found … Prices Are Only Going Up … and Geopolitical Instability Is a Huge Wildcard!

All told, the costs of finding oil have TRIPLED since 2001 …

Finding new sources of oil is getting harder and harder …

Much of the world’s supplies reside in politically unstable places …

And yet the world’s thirst for oil remains practically unquenchable.

According to the World Energy Outlook, we’ll need 47 million barrels a day in the next 20 years just to compensate for the wells that are drying up.

Plus, we’ll need another 13 million barrels to cover the new demand.

Add it up, and that’s 60 million barrels a day — the equivalent of discovering six new Saudi Arabias — just to keep our oil habit going. Talk about an impossible situation!

And I haven’t even gotten into all the problems on the demand side yet!

I’ll have more on those in tomorrow’s column.

But in the meantime, you’re probably already wondering how the world can keep growing without the cheap and plentiful oil that’s defined our lifestyle for decades.

Well, again, that’s where the “New Fuel Revolution” comes in.

It’s about a new source of energy that’s quickly rising in popularity.

It’s about a convergence of new technologies and techniques that are allowing us to tap greater and greater amounts of this fuel — which is cleaner, cheaper and more-efficient than oil.

And perhaps the best part is that this New Fuel Revolution is already starting to get under way … right here in the United States of America!

I think investors who recognize its potential now … and invest in the leading companies in this space … are going to reap massive profits.

So be sure and stay tuned all this week as I reveal more about this New Fuel Revolution — including the best ways to invest in it. To attend, be sure to click here shortly before noon Eastern Time on Thursday, February 16!

Best wishes,

Sean