The Energy Bonanza Nobody Sees Coming

In This Issue: The Energy Bonanza Nobody Sees Coming Minute by Minute Is the Cascade in Crude Overdone? Cheap Oil Crushes Putin's Arctic Ambitions Unless you've been cut off from the world, you've seen the tumble in oil prices lately. But what you may not know is just how bad that is for Russia. You see, they need high oil prices to help prop up their economy. When they plunge, the first things that get shut down are farflung projects like drilling in the Arctic. That's good news for one surprising country. In a shockingly bold move, they staked a massive claim to over 90 billion barrels of oil and 1,670 trillion cubic feet of natural gas there. I'll show you how to profit from it here. The Energy Bonanza Nobody Sees Coming 10/27/2014 It's the biggest land grab since the Louisiana Purchase. And you'll never guess the country behind it: Canada, our normally docile northern neighbor. The prize? The North Pole, home to a massive resource treasure trove: 90 billion barrels of oil and 1,670 trillion cubic feet of natural gas, to be precise. That's 15% of the world's undiscovered oil and 30% of its gas. Don't be surprised if you haven't heard about this northern power play. Few Americans have. That's because Canada's foreign minister kept it low-key, quietly filing papers with the United Nations in late 2013 claiming the North Pole as part of Canada. But alarm bells immediately went off in Moscow, where Vladimir Putin ordered his defense chiefs to build up military units in the Arctic. That's not surprising. Russia has long claimed the North Pole was theirs, too. An Urgent Profit Alert So why all the interest in a place that's shrouded in darkness for months on end and where temperatures routinely fall below -15 degrees Fahrenheit? Shockingly, the answer has little to do with the massive bounty that lies below the frozen Arctic Ocean. It has everything to do with two seismic shifts that are going to upend global energy markets forever---and unleash an explosive opportunity that will create more millionaires than anything that's come out of the U.S. shale boom. That's why we're writing you with this urgent profit alert today. In a moment, we'll show you how you can discover the names of 7 companies perfectly positioned to take advantage of Canada's audacious move. But to get the complete picture of what this means for your financial future, you need to know exactly what pushed this quiet country to do the unthinkable. One Door Closes... Canada's Arctic push comes as its biggest customer---the U.S.---marches toward energy independence thanks to hydraulic fracturing, which has unlocked massive amounts of oil and gas trapped in the ground here in America. That's great news for us, but it's a dagger in the economic heart of Canada. Because here's the problem: we're their biggest customer. In 2010, Canada sold us a staggering $92 billion worth of oil and natural gas. That's more than twice what Saudi Arabia sold us, but that number has been dropping ever since, and it's got them worried. Worse, President Obama has effectively shelved the Keystone XL pipeline, which would have carried crude from the Canadian oil sands to the Louisiana coast, where it could have been refined or exported. The Canadian Energy Research Institute estimates that between 2011 and 2035, pipeline constraints and price discounts could cause Canada to lose out on a potential $130 trillion in GDP and $276 billion in taxes. You may be wondering then, with their number one customer effectively sticking it to them, why Canada would risk an international incident by claiming the North Pole. The reason is stunningly simple. They've just found a massive new market for their massive supply: China. ...Another Door Opens The reality is, with over two trillion barrels of oil in the ground and American demand plunging, Canada needs a big new customer---and fast. And there's no place on Earth more in need of energy than China. According to the International Energy Agency, Chinese energy demand will grow 60% by 2035. Right now, the Red Dragon is burning through so much oil that it just passed the U.S. as the world's largest importer. China has already sunk its claws into the Great White North's massive oil and gas supplies. Here are just a few examples: Chinese government-backed PetroChina has taken a $2-billion stake in two Alberta oil sands projects; Chinese energy company Sinopec has tied up over $4.6 billion in the Canadian oil patch; And China Investment Corp. spent $821 million to snag a 45% share of another oil sands project. Even so, Canada is still left with almost no way to get its landlocked oil to its new partner. But the missing piece of the puzzle is about to drop into place, thanks to a climate trend that will connect the world's largest energy importer with the biggest exporter---creating a situation that could make you rich. Profit From the "New Silk Road" Before we go any further, you should know that at Investing Daily, we're agnostic about the global warming debate. But no matter where you stand,the bottom line is that the Arctic ice is melting---and far faster than anyone expected. And the shortest route connecting China to the eastern side of the Americas runs straight through the Arctic. It's no coincidence that Canada's bold move came after two ships recently sailed through. The voyage's results were staggering: the shortcut sliced 1,000 miles off the journey for one of the vessels, which was carrying coal from Canada to Finland, saving its owners $80,000 in fuel costs. Now imagine that type of savings on ship after ship, and you begin to see the method in Canada's madness. We call this energy's new Silk Road, because of how it profitably connects China to the West, like the incredibly lucrative trade routes to Asia the Portuguese discovered in the 1400s. But no matter what you call it, the opening of the Arctic shipping routes is a game changer. 7 Screaming Buys to Grab Onto NOW The truth is, the battle over who really owns the world's northernmost point could rage on for years, but it really doesn't matter, because while the bureaucrats duke it out, the ice continues to melt---and China's oil demand continues to grow. All Canada really needs to do now is get the precious cargo to a coast so it can ship it out. And that's exactly what's happening: companies are racing to get Canadian oil to a port. That's where the 7 top picks we mentioned earlier come in. They come straight from David Dittman, chief investment strategist of our Canadian Edge advisory, and he'll reveal each and every one to you in a just-released free report: "Arctic Riches: How to Profit From Canada's New 'Silk Road' to China." It's yours FREE just for taking Canadian Edge for a no-risk 90-day test drive. Dittman has been watching Canada's shift to the east happen since we launched this unique service a decade ago. His readers have already cashed in on this little-known trend with picks like Canadian Pacific Railway (NYSE: CP) and Canadian National Railway (NYSE: CNI), Canada's two biggest railroads, which are hauling ever-longer tanker trains out of the oil sands. In the past year, these rock-solid investments have gained 43% and 18%, respectively. The best news? The 7 picks he gives you in this latest report are poised to do even better as the Silk Road to China opens up. This is one of the most reliable trends in energy investing, and we want to make sure you get in on the ground floor today, before these 7 superstars take off into the stratosphere. That's why we've chosen to release David's exclusive report now. The fact that it's free makes this one of the most generous offers we've ever made. But a word of warning: Because of the exclusive nature of these picks, we can only keep this offer open for a limited time. Don't be left on the sidelines while other investors reap the biggest profits. Click here to get your very own copy of this unprecedented special report now. Editor's Note: Only a handful of American investors have any clue about the earth-shattering developments north of the border. Once they catch on, they'll pile into these 7 winners, delivering a huge profit wave to investors who got in early. Don't miss out. Click here to grab your copy of this incredible report now. 7 Ten-Bagger Energy Stocks?! China needs Canadian oil. Canada desperately wants them to have it. But the Alberta tar sands are landlocked. The U.S. continues to block the Keystone Pipeline. Yet the pipeline isn't the only way to get the oil to China. Billionaires Bill Gates, Warren Buffett and T. Boone Pickens are pouring billions into transporting Canadian oil – north, west and east – to get the oil to China. Here are 7 ways to profit from Canada's oil race to China. It's an energy boom you won't want to miss. Ten-bagger profits are not out of the question. Click here. Minute by Minute 10/24/2014 By Ari Charney The Reserve Bank of Australia's (RBA) recently released minutes from its monetary policy meeting earlier this month show the central bank is increasingly concerned about global growth. At the same time, it noted that the economies of its key trading partners are still growing near their long-term averages. Even so, the RBA observed that economic indicators show a continued softening of growth in China, though the bank believes the Middle Kingdom's policymakers have the scope to ease policy to help support gross domestic product (GDP) growth. China is Australia's biggest trading partner, accounting for 27.4 percent of the country's two-way trade in 2013 and absorbing a substantial 35.2 percent of exports. Iron ore is Australia's top export, accounting for nearly 22 percent of the country's total exports of goods and services last year, and China has been a major destination for the base metal. But prices have plummeted by nearly 40 percent on a year-to-date basis due to a glut of production resulting from new projects coming on line, as well as falling Chinese demand for steel due to weakening in the country's housing market. Australia's other major trading partner is Japan, and the RBA said that growth appears to be picking up slightly over there, though the bank conceded that the overall picture remains unclear. Japan accounted for 13.8 percent of Australia's two-way trade last year, including 19.6 percent of the country's exports. One area where the RBA has hoped to boost overseas trade is by using its monetary policy to engineer a decline in the exchange rate. A lower exchange rate should make the country's goods and services more competitive in the global market. With the peak in mining investment now past, the central bank is keen for one or more of the non-mining sectors to take over leadership of the country's economy. Thus far, housing has been the only sector to step up since it's a natural beneficiary of historically low interest rates. But the RBA has become increasingly wary of a housing bubble and has recently focused its attention on reining in real estate investors. Although the central bank might prefer the Australian dollar to trade below USD0.85, the currency has proved unusually resilient, perhaps in part due to the perception that its value is backed by the country's resource riches. After hitting an interim peak near USD0.95 in early July, the Australian dollar suffered a sharp decline in September and currently trades around USD0.88. That's not all that far away from the low for this cycle, which it briefly touched in early October. But given the declines in key commodity prices, the RBA says that the exchange rate remains high by historical standards and is "offering less assistance than would normally be expected in achieving balanced growth in the economy." Even so, Australia's GDP growth appears likely to outpace the US this year. But the RBA still frets about the fact that the pace of expansion will remain below the economy's long-term trend of 3.25 percent annual growth until 2016. For full-year 2014, economists surveyed by Bloomberg forecast the economy will grow by 3.0 percent, significantly higher than the expectation for a comparatively tepid 2.2 percent from the US. The RBA's next set of forecasts will be published on Nov. 7, in its quarterly Statement on Monetary Policy. The central bank's last round of forecasts showed that it didn't expect the economy to hit the key threshold of 3.25 percent until 2016. However, private-sector economists, whose forecasts have been updated more recently, see growth remaining below trend through 2016. This article originally appeared in the Down Under Digest column. Never miss an issue. Sign up to receive Down Under Digest by email. "Back Off – It's Mine!" Canada's Foreign Minister, John Baird, is issuing a warning to other nations. Russia's president, Vladimir Putin, says not so fast. At stake are trillions of dollars in energy sales – 90 billion barrels of oil and 1,670 trillion cubic feet of natural gas buried underneath the North Pole. Who wants all that oil and is willing to pay big for it? China. So while Russia and Canada duke it out over who owns the North Pole, who stands to profit the most? That's easy: early investors who know about these seven under–the-radar energy companies making sure China gets its oil. You could be one of these investors, too – if you click here. Is the Cascade in Crude Overdone? 10/24/2014 By Ari Charney With global oil prices firmly in bear market territory, it's perfectly natural to wonder whether the worst is yet to come. Crude's steady decline over the summer culminated in a sharp selloff earlier this month, a painful reminder of how fast commodity prices can tumble once sentiment comes undone. Thankfully, crude prices finally found a base of support over the past week, which gives us a welcome reprieve to consider what's ahead. There's no question that the decline in oil prices will have at least some effect on Canada's economy should they stay at current levels or fall even lower. According to economists with RBC, one-third of private-sector capital spending in Canada is tied to oil. If prices persist at current levels, some projects could even be tabled until an eventual rebound. In recent months, we've already seen some investments in the resource-rich province of Alberta canceled or deferred, including oil-sands projects initiated by French oil major Total SA and Norwegian energy giant Statoil, due at least in part to the high cost of skilled labor in the region. In fact, the intensive production involved in unconventional oil plays, including Canadian oil sands, means that current prices aren't all that far away from breakeven levels. Indeed, a recent report from the International Energy Agency (IEA) observes that nearly 3 percent of global oil production could face cuts if prices fall below USD80 per barrel. But the situation in the oil sands is more critical than that. Should the price of oil drop below USD80 per barrel for an extended period, then the IEA says as much as 25 percent of oil sands production could be sidelined. And the Financial Post notes that its review of employment data compiled by Bloomberg shows that crude production in Alberta is responsible for all of the country's net-employment growth for the 12-month period that ended in July. None of this has escaped the attention of the Bank of Canada. In its latest quarterly monetary policy report, the central bank said, "The lower level of global crude oil prices and the resulting weaker terms of trade are projected to reduce Canadian incomes and to weigh on household and business spending." But before you throw in the towel, there are other factors at play that could offset the worst-case scenarios. For one, economists with CIBC recently questioned whether the oil supply glut commonly cited in the financial media is based on actual production or projected future production. That's a key distinction because falling prices will almost surely lead to a curtailment in future production, at least among higher-cost producers. Of course, many OPEC member nations are reportedly willing to maintain production at current levels simply to hold market share or possibly even win market share from those forced to idle production. Nevertheless, the net effect of an extended period of lower prices will be a decrease in production. More important, CIBC points to evidence that the supposed supply glut that's troubling the market seems to be based on future production. The economists note that industrial country crude inventories remain below their five-year average. And the US Energy Information Administration (EIA) forecasts that inventory levels will remain below this threshold for at least another year. CIBC also casually mentioned another factor that may have contributed to the cascade in crude prices. We're currently in the seasonal period when refineries routinely shut down for scheduled maintenance, which dampens demand for crude. In other words, it's entirely possible that the magnitude of the crude selloff was overdone. For now, forecasts for crude prices aggregated by Bloomberg suggest that we could be at an interim bottom. While North American benchmark West Texas Intermediate (WTI) recently traded near USD81.23 per barrel, the average forecast among the nine analysts who've updated their projections since mid-October is for WTI to trade just shy of USD90 per barrel in 2015. This article originally appeared in the Maple Leaf Memo column. Never miss an issue. Sign up to receive Maple Leaf Memo by email. Profit from Russia's Energy Woes Things are getting rough for the Russians. Obama just slapped some of their key energy companies with sanctions, trying to get them to fall in line for their actions in the Ukraine. This comes on top of them losing the race to claim the Arctic last year. You may not know it but the Arctic holds a treasure trove of energy – 90 billion barrels of oil and 1,670 trillion feet of natural gas. And one country's bold move slammed the doors on Russia getting to it first. I'll show who it is and why they did it – along with how you can bank gains of up to 1,240% – when you click here. You are receiving this email at benjamart.ss.stock@blogger.com as part of your subscription to Investing Daily's Stocks To Watch, published by Investing Daily. To ensure delivery directly to your inbox, please add postoffice@investingdaily.com to your address book today. Email Preferences | About Us | Premium Services | Contact Us | Privacy Policy Copyright 2014 Investing Daily. 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