His subscribers report an average of 90% profit on his picks—that’s nearly DOUBLE their money on every pick.
John Myers studied under the guiding hand of one of the most respected men in the oil business—the publisher of Oil Week and one of the original “gold bugs”. CLICK HERE to learn more.
Here’s why oil is going to continue rising:
Fueling Force #1: A lethal energy cocktail:
thinning supply mixed with growing demand
It’s a simple law of supply and demand: supplies are dwindling, demand is soaring.
This year, the world will be using oil at a rate of more than 1,000 barrels per second. According to the Energy Information Administration (EIA) global oil demand will average 87.8 million barrels per day (bpd) this year, up from 87.5 bpd in 2007. At 87.8 bpd that equates to 1,106 barrels per second!
By 2030, global demand is expected to rise to about 115 million barrels a day. Don’t kid yourself that isn’t going to put a kink in the world’s ability to pump more oil out of the ground.
Meanwhile against the backdrop of a supersonic energy boom and the world’s addiction to oil, we have decline. Middle East oil fields are getting tired from years and years of pumping endlessly. Our own fields in the U.S. are in declining production.
The North Sea oil fields are in rapid decline. Take Mexico’s Cantarell Field, the second largest in the world. Already it has watched output fall 41%—that’s near half its production.
The sad truth is that very little production comes from fields discovered since 2000. And only 15% of production is from fields discovered in the 1990s.
Fueling Force #2: Emergence of China and
India as oil eaters and energy suckers
Everyone knows the big BOOM is happening across the world right now. China is exploding with the country in dire need of energy sources. They are sucking up oil like crazy with no end in sight.
To show you how much oil China is using take a look at this:
China’s consumption of crude oil rose from 5.6 million barrels per day in 2003 to 7.6 million in 2007.
In 2004, Asia surpassed the United States as the largest consumer of oil in the world, according to Daniel Yergin, chairman of energy analyst Cambridge Energy Research Associates. That demand is only going to swell beyond what the world can handle thanks to the growth in China and India where their combined demand is expected to double in the next two decades.
Reality is that they’re buying more cars, more consumer goods and demanding more electricity. One third of the world’s population lives in these two countries and they are clearly shifting the energy balance.
By 2030, India and China together will import as much oil as the United States and Japan do today.
America: still an oil offender
We Americans should be ashamed, too. We consume a quarter of the world’s oil every day—a stunning 7.5 billion barrels yearly. Oil consumption in the United States has jumped to 21 million barrels a day this year, from about 17 million barrels in the early 1990s. And more than half the oil we use is imported.
As long as China and India continue to grow at breakneck speed, which is expected, oil supplies are going to collapse under the pressure. This is very good news for anyone holding shares in an oil company—especially a junior like AWEC who has ample room for its share price to move.
Fueling Force #3: Continuing slide of the dollar
Take an egg and drop it on the ground. What results is much like what’s happening to the U.S. dollar. A free fall followed by a real mess. Our once almighty greenback is falling, hitting new lows against the euro and a new 12-year low against the yen.
Bad news for consumers…good news for investors in commodities like oil or gold.
Investors and speculators move to protect themselves against the dollar’s decline by moving into commodities like oil and gas. As the dollar drops, oil soars. And as oil prices soar so do gas prices.
Make no mistake. We’re staring $4 and $5 a gallon gas right in the face. Another commodity affected by the falling dollar is gold…and look at those prices. It has hit an astonishing $1,200 an ounce—investors hedging against the falling dollar.
"Oil and other commodities have an intrinsic value so that to the extent that the U.S. dollar depreciates, (oil) becomes relatively cheaper in terms of other currencies, such as the euro," said David Moore, a commodity strategist with the Commonwealth Bank of Australia in Sydney. "So you get an adjustment to compensate for that effect."
As of this writing the Fed just cut the interest rate again. Prevailing sentiment is that the dollar will continue to fall even as the Fed continues to cut rates.
Yes, indeed, it is a very good time to be invested in oil and in particular in a junior producer such as Ameriwest. For just pennies on your hard-earned dollar, you can buy shares of my latest Secret Stock pick. You don’t need to pour a lot of money into an investment either.
A $5,000 investment now at under $1.00 a share could be worth $15,000 in just 6 months! I don’t see the dollar rebounding anytime soon nor do I see oil dropping back significantly, if at all. My projections are firmly placed on $120–$150 a barrel oil in 2008.
That is very good news for early investors in Ameriwest (AWEC).
Fueling Force #4: The dirty “R”
monster that’s rearing its ugly head
We have to face it even if our politicians and leaders are in high denial.
Even the Oracle of Omaha, revered king of the investment world, Warren Buffet admitted our country is in a recession. Eventually those who resist the notion we’re already there will join the ranks of those who see things as they really are.
Some interesting surveys were undertaken recently by Duke University/CFO Magazine and the Wall Street Journal. Just to show you how far out of the loop Washington is right now let me share some of the findings with you:
- Fifty-four percent of the CFOs in the Duke University/CFO Magazine survey of 475 CFOs said the U.S. is already in a recession.
- Another 24 percent believe in a high likelihood of a recession later this year.
- Approximately 75 percent are more pessimistic this quarter about the U.S. economy than they were in the previous quarter. Concerns about issues such as consumer spending, turmoil in credit and housing markets, and high energy prices pervade.
- Most of the CFOs surveyed said the Fed’s interest rate cuts haven’t had any effect on their business.
And when the Wall Street Journal conducted a poll?
A full 71% of the people who responded believe we’re in a recession. (Heck, JP Morgan chairman and CEO Jamie Dimon believes America's in a recession.)
That same group also felt there was a 48% chance "that the 2008 downturn could be worse than what was felt in the early 1990s and in 2001."
Investing in a junior oil and gas company still has risk but there’s tremendous upside: the growth potential is tremendous. And having a junior that’s already producing diminishes the risk to an important degree. Of course because the share price is just pennies on the dollar as of this writing, even if it loses some ground during its early stages you’re still not losing your shirt. You’re protecting your precious dollars by buying early at a low share price!
Myers’ Secret Stocks • PO Box 402 • Hotchkiss, CO 81419
To Subscribe Call Toll-Free: 1(800) 368-5196
24 hours a day, 7 days a week