173 Billion Barrels Lost

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As these numbers continue to grow, they will still lag the rates found in the United States for one simple reason... And it all has to do with the exports. Advertisement Saddam's Lost Oil Thanks to an epic fleecing in the oil community, you have the rare chance to get in on a cache of crude that no one (even Saddam Hussein) knew existed. There are 13.7 billion barrels of oil just underneath the surface in the last place you probably ever expected... and one small company is already pumping it out of the ground. Click here to see why this opportunity could be even better than the last one. Market Stops Buying it As I'll show you in a moment, although Canada has a tremendous amount of reserves, production has stalled not just because it is costly but also because the United States has been producing more oil than it has since 1986. Because of the growth in U.S. production, Canada sees the writing on the wall: its biggest customer will soon stop buying. Although the chart above shows Canada's export volume to the United States increasing, the trend points to a squeezing effect on all U.S. imports. As the U.S. lowers its reliance on foreign oil, Canadian crude production won't be able to expand since 97% of the country's oil exports go to the United States. And as its biggest customer starts winding down its imports, Canada is going to suffer huge economic losses if something doesn't change soon. We've reported on this type of phenomenon before with Nigeria, which, as you can see above, already lost the U.S. as a customer and is scrambling to find a destination for its oil. The same thing could happen to Canadian producers if they aren't careful. Advertisement Time to Buy This... The time to buy an oil or gas company drilling in a new shale formation is when: Production is just starting; Initial wells are showing great results; and The mainstream investing public knows very little about it. There's a new $1 company in the historic Petroplex formation that meets all three of these conditions. With nearly 20,000 acres of land and great initial results on its horizontal wells, it's only a matter of time before this company trades at $10. Click here for the ticker symbol. Voting Canada into Oblivion For the last six years, one company in Canada has tried to alter this looming crisis, but to no avail. TransCanada (NYSE: TRP), as you have most likely heard, has been lobbying hard for the past six years to get approval for its Keystone XL pipeline. The goal of the pipeline is to quickly and efficiently transport bituminous oil from the oil sands in Alberta through the United States and to the Gulf Coast. But the project has become a quagmire, weighed down by political fights, manipulation, and now increasing costs. (Once slated at $5.4 billion, the project is now estimated to cost $8 billion.) On Tuesday, Senator Mary Landrieu of Louisiana, who faces a tough runoff election in December, pushed a Senate vote for the pipeline project in the hopes that it would save her career. Unfortunately for her, the lame duck Senate narrowly rejected the bill, ending with a 59-41 vote, falling just one vote short of the 60 it needed to pass. 39 Democrats and two independent Senators opposed the bill and ended any chance of its passage this year. However, after coming closer than they ever had before, the Senate looks poised to pass the bill once the next Congress officially enters office. Advertisement "The single most significant economic development in our state’s history" Nobody thought it would happen... well, almost nobody. One energy investment analyst has long predicted that Texas’s oil production prowess would rise again. Now that he’s been proven right, it’s time to follow his lead and make a fortune off of Texas oil stocks. Click here to read the free report, where he shows you the three stocks making it happen in South Texas. An Obama Veto? Incoming Senate majority leader Mitch McConnell told reporters after the vote, “We'll do it next year.” And it will most likely pass, with Republicans set to hold a majority in both chambers and a few Democratic defectors looking to help oil and gas interests in their states. Once it does pass, the question becomes whether or not the president will sign the bill. Many pundits speculate President Obama won't make the bill a law so he can preserve his legacy on climate change, which is a top priority in the twilight of his final term. But if it does pass and is signed into law, investors should be prepared. Many uninformed traders will foolishly rush into TransCanada's stock, but that's not where the real gains are to be had. Instead, you and I should look to behind-the-scenes players who stand to profit from the construction of the pipeline... Companies that are manufacturing the pipes, erecting them, inspecting them, and designing them for the ultimate profitability. Those are the plays we're looking for. In fact, I should have one for you in a few weeks once I finish my due diligence on its financial standing. Beyond these sectors, it's quite possible that passage of the Keystone XL could be one of those rising tides that lift all ships. And in that case, you should start building positions in midstream companies that work predominately in North America. Again, that's if the president approves it — which (although many doubt it) could happen if the bill is tied to one of his favored policies. In any case, you should be ready. Until next time, Keith Kohl @KeithKohl1 on Twitter A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page. I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles Kurdistan: The Next Dubai The Keystone XL Pipeline is a Distraction Where U.S. Oil Exports Will Go Profit From the Destruction of Evil Recently... The Death of Shale 961 Billion Reasons to Like Iraq Oil The Oil Services Boom Continues Investing in Price Manipulation Make ISIS Pay

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