A few months ago, President Obama and his cohorts around the world released 60 million barrels of oil in a shock move to stick it to the speculators  — well, those speculators who weren't politically connected.

As I write this, the price of West Texas crude is $88.05.

Obama's market manipulation did nothing aside from force the price per barrel down a few dollars in the short-term... just like Cash for Clunkers, the $8,000 payout to new home buyers, and QE2.

Price fixing by any other name doesn't work.

In the long run, prices are driven by supply and demand. And these days, supply is dropping and demand is picking up.

What Keeps Me Up at Night

I don't want to scare you...

But right now, the U.S. government is doing something incredibly stupid, which one man believes is likely to cause a huge crisis in America, in the next few months.

Please do yourself and your family a favor, and get the facts on this situation, before it's too late.

I've posted a full report, free of charge, here. 

In a recent Barron's cover story, Gene Epstein writes:

As oil producers' spare capacity gradually declines to worrisome levels, the average monthly price could reach a record $150 per barrel by next spring, with spikes to $165 or $170. With this, $4.50-a-gallon gasoline will become the norm. That will put a huge dent in consumer wallets, while ramping up the desirability of fuel-efficient cars.

The article goes on to point out that OPEC's spare capacity is decreasing. Oil prices are near their peak, while oil consumption as a share of GDP is well off its high. If the global economy manages to grow next year as expected, the price of oil will jump.

This is not news to Energy and Capital readers. We've been beating this horse since oil fell to $33 a barrel two years ago.

Oh Oil, Where Art Thou?

Where will the new oil come from to supply the ever-growing global population?

About twelve weeks ago, I took off for Kenya to go to the second annual East African Oil Conference in Nairobi.

The Paris of East Africa is dirty, dusty, and crowded, but you can't beat the sun, the cool mountain air, and the coffee, simply the best in the world...

This was an early-stage exploration conference. It was full of geologists, with fewer members of the C-suite or PR people. They were there to weigh the risks of drilling.

We are at the point where everyone who owns a lease is looking at their neighbors and encouraging them to sink the $115 million to drill for proof. All the while, the cost of exploration blocks is going up.

Liquefied Petroleum Gas

So far, the story in Kenya is one of vast petroleum found by its neighbors coupled with newly discovered off-shore gas fields.

Gas in East Africa is going for twice the price it sells for in the United States, and demand is such that the volume is surging.

Commissioner for Petroleum Energy Martin Heya was quoted as saying he expects “consumption of liquefied petroleum gas to triple by the end of next year.”

The annual consumption will likely climb to 300,000 metric tons from 100,000 tons due to the construction of a “very big import and storage facility” in Mombasa by Africa Gas & Oil Co.

The Kenyan oil infrastructure hasn't changed very much since the revolution in 1963...

There is a lot of talk about new ports and storage facilities, and at least some of this is coming to pass.

When the Price of Gold Goes Up By $1...

This investment will grow by 10%, 20%  — even 50%.

But what's most amazing of all is that almost nobody's ever heard of it.

Find out how one billionaire hedge fund manager found his most profitable trade of 2010...

And how you can find the next one before it blows up. Click here to learn more.

Independence Day

Landlocked Sudan is the third biggest oil-producing nation of Africa, and 75% of its oil is produced in the south. As you may be aware, South Sudan just voted itself independent.

The first thing that will happen is foreign direct investment will surge. You would do well to keep an eye on Southern Sudanese oil policy. The plan is to divide up undeveloped oil fields and sell them off.

Small cap wildcatters could make a fortune in this game.

Of course, there are problems...

U.S. Sanctions to End

The United States government has had sanctions on Sudanese oil dating from 1997. But with the new independence and a split from the North, these sanctions will soon be lifted. If they are lifted, it will be a catalyst for share price appreciation.

A second problem is that the current oil pipelines flow through Northern Sudan. Southern Sudan is saying it wants to build pipelines through Kenya in East Africa so it can circumvent Khartoum entirely.

This will again be bullish for Kenyan oil interests, service companies, and infrastructure builders.

I have written a free report detailing the 17 oil blocks sold by Kenya and what the best prospects are. There is one company trading with a market cap of only $319.71 million. They have a farmout agreement with Tullow Oil, the great African exploration company, as well as four exploration blocks in Kenya and one in Ethiopia.

Given my conversations with the geologists, there is oil to be found in the East African Rift Valley.

The last time I found a stock like this, it went up 1,059% in less than two years...

This company has the partners, the cash, and the plan to do the same. Click here to read the analysis.

Sincerely,

Christian DeHaemer
Editor, Wealth Daily

The Uranium Supply Crunch is On

Several energy insiders have told me that we're in for a uranium shortfall.

" Forget Fukushima," they say. China and India are building nukes like crazy.

Yet more uranium isn't the answer.

It's this new, safer nuclear fuel that'll dominate the $30 billion industry over the next decade. 

A Pipeline of Forever Profits
By: Brian Hicks

Every day, more than $43,390,000 will begin a journey from Hardisty, Alberta, Canada.

It’ll enter the United States at Morgan, Montana. From there it’ll pass through Steele City, South Dakota, Illinois, and Nebraska before entering into Cushing, Oklahoma...

It will end its journey in Houston, Texas.

When all is said and done, the $43 million will have traveled 1,980 miles. 

I’m talking about the proposed $7 billion Keystone XL Pipeline that will carry over 500,000 barrels of crude oil from the Fort McMurray oil sands projects to the United States.

Two weeks ago, the Obama administration approved the controversial pipeline project.

And who can blame them?

With the unemployment rate at 9.2%, most published reports say Keystone XL will create 120,000 jobs — 20,000 in actual pipeline construction and 100,000 indirectly in supplies and services.

These are jobs that can start immediately.

To give you an idea of how important this is to the United States  — and to Obama in particular — even the liberal pro-environment rag, the Washington Post, published a piece on August 28th entitled, “Say Yes to Canadian Oil Sands”:

We would be crazy to turn our back on this. In a global oil market repeatedly threatened by wars, revolutions, and natural and man-made disasters — and where government-owned oil companies control development of about three-quarters of known reserves — having dependable suppliers is no mean feat.

We already import about half of our oil, and Canada is our largest supplier, with about 25 percent of imports. But its conventional fields are declining. Only oil sands can fill the gap.

As I’ve mentioned at least a hundred times now, Canada has the second-largest known oil resource in the world at an estimated 175 billion barrels.

Sure, the vast majority of these reserves are oil sands, also known as tar sands and “dirty oil” to environmentalists, but these are proven reserves.

Probable reserves could be higher, with estimates between 500 billion and 1 trillion barrels.

Right now, Canada exports over 1.7 million barrels of oil to the United States...

You do the math.

Canada could supply us with oil for centuries. It’s almost inexhaustible.

And that’s why I call it " the forever bull market."

Moreover, Canada is a pro-resource government newly-elected Prime Minister Stephen Harper is an oil man. Canada is friendly. And it’s our border neighbor, making transportation costs more affordable and efficient.

So the Keystone XL Pipeline could substantially reduce U.S. dependency on oil from the Middle East and other regions, according to a report commissioned by the Obama administration.

The report suggests the pipeline — coupled with a reduction in overall U.S. oil demand — " could essentially eliminate Middle East crude imports longer term."

I agree with the Washington Post: We would be crazy to turn down the Keystone XL Pipeline.

But there’s more to this story that makes me insanely bullish on Canadian oil sands stocks...

Regrow New Breasts, Limbs, and Organs

With techniques now being perfected in the lab, one company can use your body's own tissue to regrow disease- and injury-damaged fingers, arms, hearts, and more...

It will make organ donations and prosthetics a thing of the past  — and make early shareholders a boatload in the process.

Learn all about this breakthrough technology and the company here.

You see, we aren’t the only ones competing for Canadian oil sands.

The Chinese are there, too.

Sinopec, a Chinese state-controlled oil company, has a stake in a $5.5 billion plan drawn up by the Alberta-based Enbridge company to build the Northern Gateway Pipeline from Alberta to the Pacific Coast province of British Columbia.

This past June, Alberta Finance Minister Lloyd Snelgrove met with Sinopec and CNOOC, China's other big oil company, and China's largest banks.

The proposed Northern Gateway Pipeline is making progress. And it could start construction at the same time as Keystone XL.

Right now, a Chinese citizen consumes only 3% of the oil the average American consumes. If Chinese per capita oil consumption increases — and it most surely will — the price of oil will have nowhere to go but up...

And it will make Canadian oil sands that much more valuable.

In fact, if Chinese per capita oil consumption increases to 17% of that of an American, the Middle Kingdom will essentially consume 88 million barrels per day.

That’s right  — China alone will consume the current daily global production that exists.

To put it another way, the world oil complex would have to produce over 150 million barrels a day.

With Canada sitting on 175 billion barrels of proven reserves, it is going to become the most important oil exporter of this century. And oil sands production companies like Suncor, Canadian Natural Resources, and Husky will become the Exxon, BP, and Chevrons of the world.

But there are also lesser-known names that will provide much higher rates of return on investment for you...

Learn about one of those here.

Profit from the Peak,

Brian Hicks
CEO, Angel Publishing