2017/01/20

Welcome to Oil and Energy Investor

Oil & Energy Investor
Dear Reader,

As promised, your free investor report can be found below along with the details on one of my favorite investments right now.

But if you're serious about making money in the energy markets, I hope you'll stay tuned.

Along with the investment report found below, you'll also receive a free subscription to Oil & Energy Investor.

In each issue, you'll learn exactly what the industry's biggest players are up to and how to profit from their every move.

I know because I have access to the small "Inner Circle" of power-players who control 90% of the world's energy. They include:

  • 6 of the world's top 10 oil companies;
  • Natural gas interests in Russia, the Persian Gulf, and North Africa;
  • 27 world governments - including the United States, China, Russia, Kazakhstan, Australia, Iraq, and five African nations;
  • Governors of several U.S. states and the premiers of two Canadian provinces;
  • The Bank of England, the Caribbean Business Enterprise Trust, Citicorp, Control Data, AT&T, and Deutsche Bank.

That's why I can tell you that your timing couldn't possibly be better. The investment opportunities I'm privy to right now have never been this good.

And I can't wait to share my best ideas with you. You'll find one of them below.

Again, I'm glad to have you on board.

All the best,
Kent
Dr. Kent Moors


How to Best Play the 2016 Oil Rally...
Without Playing Oil


Not even the "fat cat darlings" can give you returns like this...

by Dr. Kent Moors, Editor, Oil & Energy Investor

Kent MoorThe big wigs of multinational energy "analysis" are telling anyone who will listen that now is the time to invest in "Big Oil" - the eight largest oil companies in the world not owned or controlled by governments.

International commodity titan Argus, for example, just issued its "Buy" recommendation for Exxon Mobil Corp. (XOM), and repeated the same recommendation for Chevron Corp. (CVX).

Meanwhile, French banking giant Société Générale's analysts are saying the same thing about BP plc (BP), Japanese bank Nomura Securities considers TOTAL SA (TOT) to be a great opportunity, and Canada's RBC Capital Markets and Wall Street mainstay Citigroup both think you should be buying Eni Spa (E) right now...

You'll see these energy "fat cats" claim that the "supermajors," whose predecessors used to effectively control the global oil trade until the 1970s (when OPEC took over), are diverse and integrated enough to have weathered the recent oil crash and be ready for the current crude rally.

This may even "seem" obvious.

With oil Western Texas Intermediate (WTI, the U.S. oil benchmark rate) up 36% from January to May, and the Energy Information Administration (EIA) predicting oil demand to grow by 1.5 million barrels of oil per day in 2017 (half a million higher than usual), while production is limited by low oil prices, the picture for Big Oil certainly seems good...

But it's anything but good. In fact, these fat cats of energy analysis couldn't be more wrong.

Look, it's pretty simple...

Avoid "Big Oil" at All Costs

In 2005, supermajors Exxon, Chevron, Shell, BP, and Total together boasted a return on capital of 22% - astonishingly high, especially for such an established industry.

But by 2015, that number had fallen to just 7%, while their collective debt had grown by ten times.

And all they had to show for this was a 9% decrease in oil production over the same period.

Meanwhile, all that debt is going toward funding not their exploration budgets - which could boost their future revenue - but dividends...

That's not an industry that's weathered its crisis - that's an industry in the middle of its crisis. Indeed, in April 2016, Exxon, the largest U.S. supermajor, even lost the coveted AAA credit rating it's had since the 1930s.

As if that wasn't enough, Big Oil has plenty of other problems.

For one, only 8% of recent oil and gas projects in the industry were finished on time, on budget, and met the predicted production target.

Hardly a sign of a well-managed industry...

So ignore the multinational energy fat cats and their cozy friends (and often clients), the supermajors. Instead, I suggest you look elsewhere for your oil rally profits...

Here's How My Readers Have Scored Big on This Rally - and Will Again...

You see, while all the media - and institutional investors - can talk about is the surge in the price of crude, they're both missing a potentially much more profitable opportunity: the booming price of natural gas.

Since its low of $1.639/MMBtu on March 3, U.S. natural gas prices have recovered to, as I'm writing this, $2.428/MMBtu - a rise of more than 48% in just three months.

And that's just the beginning.

From July 2014 to July 2015, the amount of electricity generated by natural gas in the U.S. grew by 22.81%, while the same number for coal fell by 7.33%.

In fact, more than 50 GW of coal power capacity is expected to be retired in the U.S. by 2020. For comparison, that's the equivalent of replacing 50 nuclear with gas-fired power plants in just four years.

The Energy Advantage

Kent's readers have seen nine double- and triple-digit gains on open and closed positions in 2016 alone, including a 199% gain on a stellar refining company. To find out how you can join Kent's premium, profit-focused research service, click here.
And the speed of this change will only increase as the U.S. electricity industry continues to move from coal to natural gas.

Demand is also being boosted by the increasing use of gas as feeder stock for petrochemicals and other industrial uses, as in Shell's new cracker plant for turning ethane, found in natural gas, into other chemicals.

Additionally, the advent of major U.S. liquefied natural gas (LNG) exports this year promises even higher demand.

The best way to play this lightning-fast rally is CONSOL Energy Inc. (CNX).

I first showed this company to members of my premium research service, Energy Advantage, in March 2016.

Just three months later, my readers were already sitting on gains of more than 20%.

And that's just the beginning...

Formerly a coal company, CNX is now almost exclusively focused on natural gas in the Marcellus and Utica shales. The company is also exceptionally well-managed, being one of the first gas companies in the region to stop drilling new wells (which is expensive).

Instead, the company has been completing previously drilled wells, which have helped to decrease their operating expenses by 20% per year (compared to just an 8% decrease for peers) and shed CNX's liabilities by $3 billion.

The company has also signed deals to export its gas to Europe, where gas trades at a premium, via the Marcus Hook Industrial Complex in Pennsylvania. All in all, CONSOL stands to grow significantly from its current, still-underpriced valuation as demand for natural gas continues to grow.


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