Brace Yourself

In less than a year's time, oil prices will skyrocket. It's all thanks to China's obsession with the automobile.

You are receiving this email because you signed up to receive our free e-letter, or you purchased a product or service from its publisher, The Oxford Club. If you are having trouble viewing this email, click here to view it in your browser. Brought to you by The Oxford Club Thursday, September 1, 2016 BANNED: Why You've Been Missing Out on These 100-Baggers For the past 82 years, you've likely missed out on some of the biggest winners in the history of investing. Businesses like GoPro, which would have turned a $100 stake into about $133,000... Airbnb, where a $100 stake from 2009 is now worth $797,000... and Uber, which turned $100 into $1.25 million over the past 7 years. But you don't have to miss out anymore! Click here to see why. Increased Vehicle Sales in China Will Send Oil Prices to the Moon David Fessler, Energy and Infrastructure Strategist, The Oxford Club China has been buying cheap oil like gangbusters. In fact, the country has been adding 1.2 million barrels per day to its strategic petroleum reserve (SPR). China's SPR is capable of holding 511 million barrels. And it's nearly full... Most analysts believe that when it's finally full, global surpluses will jump and send prices below $40 per barrel again. They're wrong... kind of.   How John D. Rockefeller Became the Richest Man in the World... At an estimated $300 billion, John D. Rockefeller was three times richer than Bill Gates and four times richer than Warren Buffett. He did it by "monopolizing" every link in the oil chain, until the government broke his company apart. Most people know that story, but you likely don't know the one company Rockefeller founded that quietly continued his business plan... It's still in operation today. In fact, it's increased its royalties every year on record. And just days from now, it's set to pay out $583 million in royalties. Here's how you can collect.   It may happen in the short term. But I'm going to show you why, in less than a year's time, oil prices will skyrocket. It's all thanks to China's obsession with the automobile. Last year, there were 21.1 million passenger cars (sedans, minivans and sport-utility vehicles) sold in China. That's an increase of 7.3% from 2014's sales. And in the first half of 2016, vehicle retail sales grew 9.5%. According to the China Association of Automobile Manufacturers, sales for the year should grow 7.8%. I think that's too conservative. I'm predicting sales will increase faster than anyone expects... Which should drive up demand for crude and more than offset the 1.2 million bpd left behind once China's SPR is full. Peak Oil Truth is, China can't keep up with its own oil demand. In the 1980s and 1990s, China was a crude oil exporter. But the rise of the Chinese middle class and its love of automobiles changed that forever. The Chinese now buy more vehicles annually than the U.S. As a result, China's oil production can't keep up with its consumption. China's crude production hit a wall last year at 4.3 million bpd. That's because the country is exhausting its domestic reserves faster than it's replacing them. China's domestic oil market is peddling backward. Its two biggest producers, PetroChina Company Limited (NYSE: PTR) and China Petroleum & Chemical Corp. (NYSE: SNP), saw their 2016 first-half output fall 4% and 12%, respectively. In July, China's average crude production hit 3.95 million bpd. That's its lowest daily output average in almost five years. That means one thing: China's crude imports have to go up. And they have. China's dependency on imports has swelled from 30% in 2000 to 57% in 2014. In the first half of this year, China's imports rose 14.2%. For the entire year, analysts expect China's imports to average 7.4 million bpd. That's 10% more than its 2015 imports. By the end of the year, China is likely to surpass the U.S. as the largest importer of crude. As a result, China's imports could shoot up 30% by 2030 - an increase in demand of more than 2 million bpd. Again, that's more than enough to offset the 1.2 million bpd surplus that will exist once China's SPR is full. Which should cause oil prices to jump. The key is this: China has to import from somewhere. So American companies that can produce oil from low-cost stacked formations, like the Permian in Texas, and Arkansas' SCOOP and STACK plays, will make out like bandits. The current "global glut" in crude is going to disappear faster than anyone thinks it will. Make sure your portfolio has some good-quality U.S. exploration and production companies in it. Remember, this isn't a short-term play, so you'll want to set your trailing stops wide enough to absorb short-term price volatility. Then, as China sucks up all the world's excess oil production, you'll be richly rewarded. Good investing, Dave Click here to post a comment on EnergyandResourcesDigest.com Why Two Men Bet $3.03 Billion... Two billionaires recently made huge bets on a single stock. The first, one of the 20 richest people in the United States, put $1.33 billion down. The second, a man who literally wrote the book on safety, put in even more... $1.7 billion. Why are they so confident? In short, because this company is set to do something nobody has ever done in the history of the markets. Here's the full story. We also recommend... This Prehistoric Element Is the New Gasoline by Sean Brodrick Wednesday, August 31, 2016 This "new gasoline" will completely change the way we generate energy. And it preexists the dinosaurs. Read On... The Countdown to $1,519 Gold by Sean Brodrick Monday, August 29, 2016 Gold and miners are on the launch pad. And certain global forces are about to send them skyward. Read On... Investing in Self-Driving Cars by Adam Sharp Saturday, August 27, 2016 Self-driving cars and trucks are one of the biggest, hottest areas. They're going to be very disruptive. Read On... You are receiving this email because you subscribed to Energy & Resources Digest. To unsubscribe from Energy & Resources Digest, click here. Need help with your account? Click here. Have a question or comment for the editor? Click here. Please do not reply to this email as it goes to an unmonitored inbox. To cancel by mail or for any other subscription issues, write us at: Energy & Resources Digest | Attn: Member Services | 105 West Monument Street | Baltimore, MD 21201 North America: 1.800.683.0709 | International: +1.443.353.4747 | Fax: 1.410.329.1923 Website: www.energyandresourcesdigest.com Keep the emails you value from falling into your spam folder. 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