Liquid Stimulus

Having trouble viewing this issue? Click here. Refer a Friend to Wealth Daily.

Liquid Stimulus By Christian A. DeHaemer | Monday, June 27th, 2011 In its latest brilliant move, the International Energy Agency is planning to release 60 billion barrels of crude oil — half of which is slated to come from American emergency reserves — to electronic bidding, starting this coming Wednesday. This made big news when it was announced last week as a stopgap remedy to the supply disruption stemming from turmoil in Libya, instantly sending crude prices plunging to a four-month low of just under $91/barrel. Now, I’m not about to start ranting and raving about the logic in releasing over $2.1 billion worth of our emergency national supply (about 4% of the total) in order to compensate for political turmoil in a country which we’re also, by no coincidence, bombing... To me, it’s just another multi-billion stimulus Band-Aid, bought and paid for by the U.S. taxpayer, ultimately doomed to failure in the long run. What I did want to point out is these latest fluctuations in the price of crude may be the very last moments the price per barrel falls below the triple-digit mark. And this is a problem that neither the IEA nor any other committee or multinational force or collective will be able to solve with last-second infusions of funds or resources. Advertisement Secret Geology Opens New Oil Region The Soviets were planning to use this as a weapon against NATO... But instead, this piece of "secret geology" has just given the oil industry one of its most important discoveries ever. Find out how this never-before-published information will change the face of the crude oil business. We’ve been flirting with $150/barrel crude since 2008. Ironically, what saved us from $150 — even $200 — barrel prices was modern history’s second biggest recession. What the 2008 meltdown did to travel and commerce effectively put a drag chute on the oil industry, and allowed for the breaks on prices two summers ago when we were flirting with $5 a gallon at the pump. To my amazement, few analysts and talking heads pointed out at the time that this recession was our best and last chance to keep gas prices at palatable levels. It was a losing proposition, of course. Because now, three years later — with the recession still not under control — prices were almost back to where they were during pre-crisis stages... What this should tell you is that from now on, the prices are going to steadily rise. With the great recession’s dampening effect now getting a little stale, there is literally nothing left to keep crude prices from following the natural demand/supply arc. The really bad news here is that the supply half of the arc I’m talking about will look something like this: Which corresponds to a price arc looking very much like this: Nothing new, right? Same old Peak Oil theory coming back to haunt us. The main concern now shouldn’t be Peak Oil itself, because that’s not something we can control anymore; but rather the long-term effects of the temporary reprieve handed to us by the financial crisis of 2008. With drastic increases in prices effectively delayed for that period of consumer frugality, we’re now approaching a point in which prices are about to reassume their natural trajectory — regardless of the financial state of the United States and of the world... Which means we’re basically back on track to experience the harsh brunt of Peak Oil. Something seemingly positive like an economic recovery tossed into this sort of mix would have the effect of injecting oil prices with steroids as they rapidly get back on track. In short, get ready for $5-a-gallon gasoline. It may not come next week or even next month, but it will come. And once it’s here, it’ll never go back. Remember, it’s not just your gas that’s going to hit you in the pocketbook, but everything else that requires gas to get to you: food, water, and every other supply you rely on to live and work every day. It’s the brave new world, ladies and gentlemen… Advertisement This winter, if you had to choose between heat and food... which would it be? Mark my words, this is a very real possibility. Watch this video and prepare yourself now. So what are you supposed to do, knowing all this now? Well, one option would be to take what has now emerged as the most predictable — and most unstoppable — financial trend in modern history and leverage it into earnings for yourself. Trust me when I say you’ll appreciate the extra cash when a loaf of Wonder bread starts costing $10 at your local Giant... So how do you do this? Well, the one thing there’s no shortage of is your options as far as investing in oil. From the ETFs to the big corporations like BP and Chevron, you can put your money to work tracking the inevitable rise of oil as we move from peak production to global shortages. But a method I far prefer to the standard investment strategies is going with the explorers. While Shell and Exxon may get you’re the gas into your car and make billions in the process, the oil explorers are where the rubber really meets the road — and wherein big percentage gains are the goal, not the exception. For the last several weeks, I’ve been teasing you with a company about to capitalize on the world’s last and greatest unexploited fossil fuel region. With property holdings totaling well over 100,000 square miles, this company is one of the biggest landowners in a region estimated by the USGS to contain over 72 billion barrels of oil — that’s 1,200 times the volume of crude just released by the IEA last week, with a total resource value of more than $6 trillion. Best of all, with oil prices temporarily reeling from this stimulus package, this company’s market cap is now less than $270 million; its stock trading at just $1.50. At prices like those, even a minor discovery on their massive property will drive stock prices up hundreds of percent as production is set up. To get the full report on this powerful exploration firm and the historic project they’re now developing, click here. But be warned: I don’t know how much longer this story will remain off the radars of my competition at The Wall Street Journal, The New York Times, and at dozens of other mainstream media outlets which usually put things like this in their headlines... This is quickly turning into the biggest news the oil industry’s seen in at least a decade. Once my friends in the 212 area code receive this company’s stock ticker in their morning e-mails from their own industry contacts, you can kiss this one goodbye. Don’t wait for the dance to end... Good Hunting, Christian DeHaemer Editor, Wealth Daily Refer a Friend to Wealth Daily

Wealth Daily Blogs Rare Earth Crisis Out of Hand Prices are still exploding... Muddy Waters Charged? Some one's not too happy... Shiller: "There has never been a bust of this proportion" The gift that keeps on giving.... Economic Releases for the week of Monday, June 27th, 2011: Jun 27 - Personal Income and Spending Jun 28 - Case-Shiller 20-city Index Jun 29 - Pending Home Sales Jun 30 - Chicago PMI Jul 01 - Construction Spending Jul 02 - Auto and Truck Sales Jun 28 - Consumer Confidence Jul 01 - Nonfarm Private Payrolls Jul 01 - Michigan Sentiment Jul 01 - ISM Index Jun 29 - MBA Mortgage Index You May Also Enjoy... Dwindling REE Supplies from China Signal Higher Prices 2011-06-24 - Luke Burgess The Next Bull Market 2011-06-23 - Steve Christ Get Your Piece of the NFL's Billions... 2011-06-22 - Ian Cooper Human Behavior Governs Exactly When the Coming Downturn Happens 2011-06-21 - Adam Lass Everybody's Got Problems, Profit from the Solutions 2011-06-20 - Christian A. DeHaemer

You can manage your subscription and get our privacy policy here. Wealth Daily, Copyright © 2011, Angel Publishing LLC, P.O. Box 84905, Phoenix, AZ 85071. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Wealth Daily does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of Angel Publishing may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription.