Whatever you do, don’t you think for a moment that $2-a-gallon gas is here to stay.
The oil industry is working overtime to remove millions of barrels of oil from the market to counter falling oil prices.
Their goal: to create a fuel shortage of epic proportions that will push oil prices back up to $75 a barrel.
With oil hovering at $40 a barrel, they have to. Otherwise, many oil companies as we know them won’t survive the slowdown.
Here’s Why
The same low oil prices that make it possible for you to fill your car for half what you paid last July are making it impossible for oil companies to continue to find, develop, and maintain new sources of oil.
This is why OPEC recently agreed to record oil cuts in December, reducing production by a massive 2.2 million barrels a day to push prices back up. That’s on top of the 1.5-million-barrel-per-day cut in October.
This is also why new Canadian oil projects have been canceled or delayed, as it costs $90 to produce oil from Canadian sands, and oil is selling for just $40 a barrel.
That’s only half of the supply destruction that’s taking place and will ultimately push oil prices back up.
Most investors don’t know this, but the world is also losing 4 million barrels a day from depletion as it becomes more expensive to pump oil out of older wells. The latest numbers from OPEC show that it takes a minimum of $75 a barrel to keep the world’s more expensive sources of oil from declining.
You see, unlike shutting down a manufacturing plant, you can’t simply turn off an oil production facility. You have to continually service it to keep the oil flowing in the future.
What makes the whole situation worse is the fact that falling oil prices have left many OPEC nations with insufficient funds for production development as they bleed off their oil monies to stimulate their own economies.
In fact, one study I read shows that Indonesia’s lack of funds will transform this OPEC member from an oil producer to a net importer.
It may not be the only one in trouble on that front.
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The International Energy Association now estimates that it will take $500 billion to counter the decline. These emerging producers simply don’t have the money.
This is why the axe may be about to about to fall on Brazilian, Angolan and Mexican deepwater oil production, as it costs $60 a barrel to produce oil from these regions.
The Bottom Line
What we are witnessing here, my friend, is a classic supply/demand squeeze in the making.
Global oil supplies are falling faster than demand…as falling revenues make it financially impossible to boost production.
Tragically, the financial media is blind to what’s going on. That’s because they are too busy celebrating low gas prices and can’t see the far-reaching implications that are about to transform our country, our economy and your future wealth.
And while the oil coming shock will send millions more to the poorhouse, it will make millionaires out of any investors who understand how to take advantage of the supply/demand squeeze that’s headed their way in the oil sector.
You can be one of them.
In fact, since I’ve been telling my readers about what’s going on, our top oil services stocks have not only been reporting quarterly earnings growth of up to 328% but also averaging three-month gains of 34%!
This is just the beginning of the profit wave that is headed your way, as oil producers to continue to cap financially nonproductive wells.
Mark my words — when the drop in supplies hits the brick wall of increasing demand in the next two months, you’re not only going to see oil stocks explode like fireworks on the 4th of July but also grab money-doubling profits in a matter of months.
For these reasons, if you can take a small position in just one of our five top oil services stocks now — before oil supplies dry up — you’ll thank me 1,000 times come this time next year.
Your Timing Is Perfect
As the rest of the world takes today’s low oil prices for granted, we’re going to make a bundle scooping up the world’s top oil services stocks while their prices are temporarily depressed.
But you’d better hurry.
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Oil prices will be headed back up sooner than you think.
- The president of OPEC said on February 4, the group not only may continue to cut back supplies but is calling for $75-a-barrel oil.
- What’s more, Bloomberg just reported that the price of oil for next January is already priced at 32% more than this month, increasing the opportunities for traders to profit from storing crude rather than selling it!
That’s why as I look at my list of five companies poised to profit from this supply/demand squeeze, I feel like a kid on Christmas Eve, excited about all the great profits I’m about to receive.
Even now, as most investors have lost money, our stocks have continued to be an oasis, not only by continuing to beat the major market indexes by $3-to-$1 but also by handing my Blue Chip Growth readers gains of up to 160%.
5 Biggest Profit-Takers of the Oil Pandemic
Profit-Taker #1: As the supply of oil collapses around the world, a number of global production companies will emerge as major acquisition plays — especially our top pick: Hess Corporation (HES). Up 51% since November 20th, this is just a sneak preview of the profit surge headed your way.
The reason is simple: The company is one of the world’s most efficient at squeezing every drop of oil out of Middle East, Gulf of Mexico and Southeast Asian oil facilities.
What’s more, the company is a significant refiner here in the U.S., with three strategically located U.S. refineries capable of delivering nearly 1 million barrels of gasoline per day. However, the real wealth trigger with this one is the company’s 1,350 (yes, that’s one thousand three hundred and fifty!) retail service stations located throughout the U.S.
As a result, you profit three ways: on exploration, the refining side, and the retailing side as supplies squeeze both oil and gas higher. I’m projecting total returns in the range of 75% to 100% on this one.
Profit-Taker #2 is another oil production company that could double your money as it helps produce oil at the lowest possible price around the globe. If you can grab this one now, before it reports fourth-quarter earnings, you could grab a quick 20% bump in the next 10 days.
That’s because as oil prices have declined, its last quarterly earnings were not only up an incredible 94% but delivered investors 22% gains in just three months.
Its 2009 profits could be even bigger, as experts estimate annual production growth from its newest developments to increase as much as 15% — handing investors another solid year of double-digit profits. In your free copy of 5 Biggest Profit-Takers of the Oil Pandemic, you’ll see why. Click here for more details.
Profit-Taker #3 is another oil services play that could make you rich. Two reasons why: It’s the acknowledged leader in boosting oil recovery, an the company has a long history of turning declining assets into producers.
What I like best about this company, and you will, too, is how foreign governments from the Middle East to Latin America depend on this company to increase production in their mature wells. If you buy just one of our oil stocks, this should be it.
In all, your free report, 5 Biggest Profit-Takers of the Oil Pandemic, will bring you five strategically placed oil companies that we believe will continue to line your pockets with profits over the next five years. As you’ll see, each one will get a huge boost from the shrinking oil supplies…yet they are selling for less than 10 times earnings. Best of all, 5 Biggest Profit-Takers of the Oil Pandemic, along with up to six free reports, is yours free, for simply accepting a no-risk trial subscription to Blue Chip Growth.
Make no mistake about it, the coming supply/demand squeeze in oil represents one of the biggest wealth-building opportunities in the world. If my new oil plays are just half as profitable as our past ones, you could easily grow 50% richer in the next six months as the law of supply and demand drives oil prices higher and higher. My current Blue Chip Growth subscribers have already profited from our oil recommendations and are now ready to capture their share of profits from this next and even more profitable phase. I’m betting that you’ll enjoy similar results — or you won’t pay a dime. That’s why I’d like to send you a free copy of 5 Biggest Profit-Takers of the Oil Pandemic along with a 100% fully guaranteed trial subscription to Blue Chip Growth.