Keep $200 worth of oil out of your mouth
Tell me about the biggest heavyweight showdown in history.
For my young readers, maybe it was the slugfest between Wilder and Fury a few years ago.
I imagine if they asked their pop the same question they would get a lecture about the glory days of Mike Tyson or even the time Holyfield shocked the boxing world with an 11th round TKO over Tyson in 1996 .
You might even have a listening ear watching the rematch a year later.
But for the most part, nothing will ever eclipse the Thrilla in Manila in 1975, when Frazier’s coach stopped the fight in the 14th. If you’re like me, you grew up hearing about these legendary fights and wish you could witness it yourself.
But if you’re getting a little FOMO from missing these historic heavyweight brawls, don’t feel too bad.
Why? Because you’re about to secure a front row seat to one of the best heavyweight showdowns in history…
And the stakes in this competition are in the trillions.
11 trillion dollars and counting…
If you doubted that global oil demand would explode in a post-COVID society, those uncertainties have evaporated.
So how bad are things going to go?
According to OPEC’s latest forecast, global oil consumption will increase by 7.2 million barrels per day between 2017 and 2023 to reach around 104.5 million barrels per day.
After that, global demand will then climb to over 112 million barrels per day by 2040.
I want you to stop for a moment, close your eyes, and think about what it would take for the world to meet this exorbitant growth in demand.
Above all, think about How many it would cost to increase global supply to those levels.
Looking at the balance between supply and demand from the latest EIA report Short term energy outlookthings are tight enough as it is:
OPEC has said it will take $11 trillion over the next 20 years to meet this growing thirst for crude oil!
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Of course, right now we have to try to take Russian oil off the table. With a series of crippling sanctions imposed on Russian oil exports, Putin has been forced to find buyers at a huge discount – a harder feat than you might think, especially if China ends up turning its back on you.
Now, it’s no secret that most of the world’s new oil supply will come from tight oil fields in the lower 48 states.
And make no mistake, dear reader: these Permian Basin oil drillers are going to be on top for a very long time.
However, there is not much more oil they can extract per day from these main producing areas.
The world will have to find crude oil elsewhere, and in large quantities.
The thing is, there’s really only two places to shoot right now…
And only one of them will emerge victorious.
The World Heavyweight Showdown: Canada vs. Venezuela
Over the past two weeks, the Biden administration has courted the Venezuelan oil industry. Perhaps President Nicolás Maduro’s recent decision to consider privatizing his country’s oil fields has eased the nearly two-decade-long tension between Big Oil and Venezuela.
However, the memories have seemingly shortened now that all eyes are on Russia.
Personally, I don’t buy it.
You see, Venezuela may have the largest oil reserves in the world (about 300 billion barrels), but the problem is that its crude oil is a far cry from the light, sweet Texas tea mined in the Permian Basin.
And that ignores the painful fact that Venezuela’s oil industry has collapsed in disarray after years of mismanagement.
Fortunately, there is another massive source of oil that will come to the rescue of the world.
A few weeks ago I told you that my #1 oil stock for $100/bbl of oil has been Cenovus Energya Canadian oil company operating in the oil sands of northern Alberta.
As in Venezuela, the biggest obstacle for the Canadian oil industry is the higher cost of extracting the resource. However, the tables are turned in a high price environment like the one we are currently experiencing.
Of course, I should also note that the United States is already consuming Canadian crude at record rates. We import more than 4.7 million barrels daily from our neighboring friends to the north.
For the record, that’s more than four times the amount of oil we buy from all OPEC members. combined!
It’s who the world will turn to for more rough.
Remember, we don’t need $200/barrel of oil to make a profit in 2022.
And the best part is that individual investors like us are still able to grab these top Canadian oil stocks at a discount. Major players like Cenovus Energy are still trading at around 7x forward earnings.
As the world desperately tries to replace its exposure to Russian crude, Canada has pledged an additional 200,000 barrels per day to global supply.
It’s a rare time when fundamental and geopolitical factors align to offer us monstrous pay.
There’s no way I’m missing this opportunity, and neither should you.
Till next time,
A true insider to the technology and energy markets, Keith’s research has helped everyday investors capitalize on the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as Editor-in-Chief of Energy & Capital, as well as Chief Investment Officer of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has provided in-depth coverage of the hottest investing trends before they became mainstream – from the US shale oil and gas boom to the searing electric vehicle revolution now underway. Classes. Keith and his readers have cashed in on hundreds of winning trades on 5G rollout and key advancements in robotics and AI technology.
Keith’s business acumen and investment research also extend to the complex biotech industry, where he and his readers benefit from the latest and most revolutionary medical therapies being developed by nearly 1,000 biotech companies. . Its network includes hundreds of experts, from medical doctors and medical doctors to laboratory scientists who develop the latest medical technologies and treatments. You can join his vast community of investors and target the most profitable biotech stocks in Keith’s Topline Trader newsletter.
Energy demand will increase by 58% over the next 25 years
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