Oil Shale Field
Discovered... in China?
Just when you thought the China story couldn't get
any bigger... the Chinese make a massive discovery.
Inside this report: Early investors made a fortune in Bakken Shale (3,685%), Barnett Shale (1,213%) and
the Canadian tar sands (5,700%). But that's nothing compared to what's likely coming...
Dear Reader,
China is a beast...
|
And now...
What could be the world's largest shale basin ever discovered.
A huge region in the west bursting with shale oil and gas.
Reports Alan Carroll of the University of Wisconsin Geology Dept.:
"Few detailed data constrain the total potential of the northwestern China oil shale. However, even a conservative estimate would place them among the world's leading oil shale occurrences."And after just a few months of preliminary fieldwork, energy experts agree: The potential resource is staggering.
"Both Chinese and American geologists believe that China's potential is massive," reports Vinod Dar, a graduate of the MIT Energy Lab. "And basins which not only rival but greatly exceed the resources of the Barnett [in America] will be found."
John Shelton, a veteran of the Barnett fields, concurs. "Initial analysis indicates the likelihood of huge reserves," he says.
In fact, in a 2009 study conducted by PetroChina's New Energy Institute, geologists estimated China's shale gas reserve alone could singlehandedly supply the country for over 300 years.
As I'm sure you know, in just the past few years, investors have made a killing in unconventional energy plays like this one...
From the Canadian tar sands to the Bakken and Barnett shale fields...
Tiny companies working these regions have made billions in profits. And if you got in early, you could have made a fortune on a number of these stocks...
Oilsands Quest, a tiny company working the tar sands in Saskatchewan, shot up 5,700% in less than four years...
Calgary-based Petrobank soared 1,594% in less than five...
In fact, since the early 2000's, when the unconventional oil and gas boom began...
- Chesapeake Energy is up 888%
- Brigham Exploration is up 665%
- EOG Energy is up 1,213%
- Pan Orient is up 4,678%
- Occidental is up 707%
- XTO Energy is up 3,685%
But I think that's peanuts compared to what's about to go down in China...
Here's why...
Again, here in America, the shale oil and gas industry has been booming for a few years... as a number of huge fields have been opened to exploration.
The richest of these fields, according to the US Geological Survey, is the Piceance Creek Basin, which covers over 4 million acres in Colorado.
Here's a diagram of where it is and what it looks like:
Because of its size and potential, the Piceance has been the main focus of shale exploration in America. And between 2003 and 2008, the heyday for the shale boom, oil firms exploring this region simply exploded...
- Plains Exploration (PXP) -- up 636%
- Berry Petroleum (BRY) -- up 654%
- Williams Companies (WMB) -- up 1,241%
In other words, if you got in early on the Piceance shale play, you could have made a ton of money.
Now take a look at this...
This is a scaled drawing of just one of the vast new shale reserves discovered on China's western front, compared to the Piceance:
As you can see, this one basin, known as the Junggar, is mammoth by comparison.
To date, China's "proven" shale reserves -- the oil they already know for a fact is in the ground -- amounts to 32 billion tons. Or as much as 23 billion barrels.
But that's not counting the potential reserves still sitting underground.
According to JL Qian of China's University of Petroleum, the potential shale reserves could be as high as 600 billion tons. Or as much as 428 billion barrels.
To put that in perspective, that's more than all the proven reserves in Iraq and Saudi Arabia, combined.
And that's just the oil. China's shale gas reserve could singlehandedly supply the country for over three centuries.
So...
If oil firms working the Piceance Basin made 500%-1,200% for their investors...
How much do you think you could make from this massive find?
In my mind, there's simply no precedent -- and virtually no limit -- to the amount of money that could be made.
And I know exactly how to play it...
Publicly, China and America are clashing over energy supplies...
Blocking mergers... spewing rhetoric... and threatening trade.
But behind closed doors, Barrack Obama and Hu Jintao just signed an unprecedented deal. One that will open this vast resource to a small group of American oil firms.
Yes, the Chinese may now have all the energy they'll ever need.
But what they don't have is a way to get it out of the ground.
Thanks to Mao Zedong's "Cultural Revolution" and socialist "re-education" programs (which was simply the killing and torturing of all the educated people in China) an entire generation of Chinese scientists, inventors and engineers was lost.
Which is why, today, the Chinese are known mainly as copy artists -- good at manufacturing just about anything, but terrible at innovation...
|
Enter the Americans... and your chance to make a fortune.
Last November, Obama traveled to China for a sit-down with President Hu.
The primary objective -- as reported by the American press -- was to talk about "climate change" and "green" energy alternatives.
But buried under all that hippie-dippy propaganda was the real agenda...
The signing of one the biggest energy deals ever devised: The US-China Shale Gas Resource Initiative.
The deal's objectives, according to a White House press release:
- Promote Investment in shale energy
- Accelerate Development of shale energy
- And create commercial opportunities for US companies
Because after decades of pioneering shale oil and gas exploration in North America, we've perfected the technology they desperately need.
And I know which companies are going in first...
You have to understand, the shale industry in China is in its infancy...
And while geologists all agree that the potential is massive, this trend is only just beginning.
In America, the first companies in -- and the first ones to make investors rich -- were the exploration companies with the technology to assess what exactly was underground.
This is known as a "seismic" image in the oil and gas world, which is a fancy way of saying "big underground map."
Just look at a company like CGG Veritas (CGV), one of the most prolific seismic companies in the world today, with projects all over the globe -- including the Bakken formation and the Haynesville, a shale deposit in northeast Texas.
During the manic years of America's shale boom (a period we're poised to see in China) CGV soared from less than $3 a share to more than $60 -- a 2,000% gain.
|
But unlike in the States, where any company can stake their claim, the Chinese do things a bit differently.
No western company is going to get close to China's shale reserve without first partnering with a Chinese oil firm -- which, as I'm sure you know, is basically like partnering with the Chinese government itself.
This is how China maintains "control" over its resources.
As you can imagine, that shrinks the list of potential players down dramatically... which makes picking the winners that much easier. (Just check out the sidebar to the right).
Which brings me to our first target...
The first company I predict could make a fortune in China is a tiny seismic imaging firm based out of Houston, Texas.
Despite its small size (market cap about $600 million) this company was actually created back in the 1960s, making it one of the oldest and most experienced firms in the sector... with a long history of innovation.
In the early years, they created technologies for giants such as Texas Instruments, Geoscience, and Sercel.
Then, in 1988, they pioneered a totally independent seismic platform that single- handedly moved the oil industry away from old 2D imaging technology and into 3D.
And today, they're developing a new technology called "full-wave," which, I can tell you as a lifelong geologist, is poised the overhaul the industry once again.
Perhaps that's why they've become a global leader in seismic exploration, with operations in Europe, the Middle East, the former Soviet Union and North America...
Perhaps that's why they were among the first to successfully explore America's major shale basins -- including the Barnett, the Haynesville, the Bakken, the Marcellus, and the Fayetteville...
And perhaps that's why they've also just been tapped by the Chinese government... to pioneer their massive new shale effort...
On March 27, 2010, this tiny firm formed a joint venture with a subsidiary of China National Petroleum Corp. (CNPC) -- one of China's three huge state-run oil firms.
As part of the agreement, this tiny company will ship equipment and technology -- including their new "full-wave" system -- right into the heart China's shale movement...
And work exclusively with the Chinese to start exploring their shale fields.
Says the CEO of this tiny firm: "This transaction will create [a company] capable of seizing high-value opportunities in the fastest-growing geophysical markets."
As I illustrated before, China's shale potential is enormous. And that means a breakout opportunity for a tiny firm such as this.
- Please understand: This is the only western seismic company that's been tapped by the Chinese government.
But it could grow much, much more than that.
For one, a deal with CNPC is tantamount to a deal with China's other state-run firms: Sinopec, CNOOC and PetroChina. If they're supplying one, I have no doubt they could soon be supplying the other three.
And now that the Chinese government (and Chinese oil industry... and the entire future of the Chinese economy) has a direct stake in the success of this tiny company, I expect them to receive the same preferential treatment (read: monopolistic rights) as every other state-run firm in China.
In other words, as the first and only one in, this tiny company could simply explode.
If this sounds like an opportunity you'd like to get in on, I've just written a special report that covers everything you need to know in full: The name of this company... the details of their agreement with the Chinese government... where, exactly, they're exploring... and what I expect to happen over the next several months...
But that's not all...
Once the assessments are complete, the drilling begins. And I know about a handful of firms that are poised to make a killing when it does...
One of these firms, in fact, already has a 20-year drilling agreement in place with PetroChina.
As the shale frenzy in China heats up, I expect this tiny firm (market cap about $300 million) to soar.
In my special report, I'll tell you everything you need to know. It's called Shale Exploration in China: Your Key to 400% Gains in an Emerging Oil Industry.
It's available online, right now. And best of all, it's free of charge.
Here's how to get your copy...
My name is Matt Badiali.
I've been a geologist for my entire career. And I've been studying the oil and gas industry for the past 15 years -- working on drill rigs... studying deepwater reservoirs... you name it.
My research has been published in several scientific journals. I've taught at three prestigious universities. And I've been a guest speaker at numerous industry conferences, including for companies like Anadarko and Exxon.
I'm also a longstanding member of the American Geophysical Union, the Geological Society of America and the American Association of Petroleum Geologists.
What it all boils down to is a lifetime of seeing how this industry works, from every angle.
And a few years ago, I decided to start putting my expertise to work in the world of finance.
Why?
Because I realized that someone with my level expertise could make a killing in the markets -- especially now.
Not only do I firmly believe these are the dawning days of a 20-year bull market in oil...
But the new technologies, the new discoveries, the boom in unconventional oil and gas... all these trends are lining up to make investors an insane amount of money.
Throw a booming China into the mix, and the potential to make a fortune in oil and gas right now is ridiculous.
So I now spend every day analyzing the best investments in the energy field... and reporting my discoveries in an research advisory called The S&A Resource Report.
And for the past five years, I've shown my readers how to make some incredible gains. For example:
- 166% on a Brazilian oil producer called Petrobras
- 53% on natural gas distributor ONEOK
- 101% on an oil services company called Veritas
- 64% on a small oil producer called Occidental Petroleum
- 77% on a drilling-services company called Parker Drilling
- 87% (so far) on independent oil operator Rex Energy
- 93% on a small deepwater drilling firm called Stone Energy
As the Chinese government teams up with American oil firms to explore and produce perhaps the largest shale oil and gas reserves on the planet.
It is -- hands down -- the most exciting development I've ever witnessed.
Here, we have two gigantic trends colliding to create one massive opportunity.
The first, of course, is the boom in unconventional oil and gas -- a trend that's made early investors in North American shale fields extremely rich.
The other is that China is desperate for energy, and is willing to spend whatever it takes to get as much of it as they can.
And with a $2 trillion cash hoard at their disposal (by far the world's largest reserves), there's simply no limit to what that could mean for investors in China's shale fields.
Again, everything you need know is included in my special report called Shale Exploration in China: Your Key to 400% Gains in an Emerging Oil Industry.
This report will not only give you the full details on the tiny Houston company I expect could make a killing exploring China's shale fields... but will also give you the full rundown of the entire shale industry in China -- and how I believe it will unfold.
As I said before, China's shale industry is in its infancy. Over the next few years, there will likely be dozens of opportunities to make money investing in it -- from exploration to drilling to production.
I will be following this trend closely, and reporting on opportunities as they arise. And this report will lay the groundwork for what to expect... and exactly how to play it.
When all is said and done, I think the money you could make from this trend will be like nothing you've ever seen before.
Again, if you're interested, you can access this report online, right now, free of charge.
But before I show you how to get started, you should know: The China oil opportunity doesn't end with shale...
After nearly two decades of dependence on foreign oil, China has had enough...
But the billions they have planned for a major shale initiative is just the beginning.
On January 28, 2010, the Chinese government officially announced the formation of the National Energy Commission (NEC).
Dubbed the "Super Ministry" by Exploration and Production Magazine, the NEC will be headed by Premier Wen Jiabao and "will outrank all other government departments and state-owned enterprises."
|
As I said before, China is woefully behind the rest of the world in terms of technological expertise. Most people simply look at the moves China has made over the past few years -- snapping up oil supplies from all over the world -- and assume it's because China has very little of its own.
But nothing could be further from the truth.
China is actually bursting with oil and gas supplies that have simply gone undeveloped for decades.
Take the Tarim Basin, for example -- a huge swath of land near the Junggar shale basin in China's northwest territory.
According to China's Mining Ministry of Commerce, the Tarim holds about 80 billion barrels of oil... and nearly 100 years worth of natural gas.
Then there's the South China Sea, which holds nearly 3 times as much oil (and 10 times as much gas) as the Gulf of Mexico.
And these are just two regions in an enormous country. A country that's been vastly underexplored.
But this year, that's all going to change. And as it does, I expect early investors could make up to 10 times their money, or more.
Here's how...
for Unprecedented Opportunity
Right now, there are two western oil firms that have been given the green light by the Chinese government to begin exploring and producing China's biggest energy reserves.
The first of these companies, a major oil firm incorporated in Wyoming, has actually been in talks with the Chinese government since 1996 -- initially working with CNPC on enhanced oil recovery technologies.
A few years later, they were one of the first companies awarded the rights to explore some of China's virgin offshore fields.
They made their first big discovery in 2002 -- a huge oilfield near the coast of Hong Kong. The discovery put them in an elite class of foreign oil firms working in China. And over the next few years, the stock tripled.
I think we're about to see another huge move -- starting any day now...
You see, after their initial success, China essentially gave this firm a key to the South China Sea -- allowing them to explore the entire coastline, north to south.
And just a few months ago, they made an important discovery...
A deepwater oil and gas reservoir that, according to initial estimates, could increase the company's natural gas production by 25% within the next couple of years.
Now, as far as I know, this discovery -- known as Block 29/26 -- hasn't been reported outside of industry journals. Which means most of the world has yet to find out.
Nor has the find been officially submitted to (or sanctioned by) the Chinese government. That's set to happen any day now...
When word starts to circulate, you could make some serious money from this stock.
But that's just for starters...
A second western company now operating in China (in contract negotiations with Petrochina) recently made an enormous discovery in the Ordos basin – the second-largest oil and gas basin in the country.
It's so big, this one discovery alone could more than double the company's daily natural gas production over the next few years.
That, of course, is huge...
But I think there's another story here -- one that could make early investors in this company an absolute fortune.
You see, a number of key players in the international oil and gas arena have just joined this tiny firm's board: The former President of Shell... the former Treasurer of Texaco... and the former US Secretary of Energy.
Trust me, these folks weren't tapped for volunteer work. I think there's something big going on. And here's what I think it is...
Behind the scenes, I believe this tiny company is using its American and Chinese connections to broker some huge energy deals between nations. Based on the caliber of the people involved, we're talking potential multi-billion dollar, high-level deals.
Now, you won't read about this in the papers – not yet anyway. But if I'm right, and these deals start going down, you will. It will be big news for this tiny firm... and, more importantly, spell huge gains for its investors.
- Bottom line: If all goes like I think it will, you could easily add a zero to this company's market cap. Meaning, if you get in now, a 1,000% gain is entirely possible.
In this report you'll learn all about the oil and gas projects of these two western energy firms operating in China... their prospects for the next few years... and exactly how to get in.
And best of all, I'd like to give you access to this report (along with Shale Exploration in China) free of charge as well.
The only thing I ask in return is that you give my monthly research advisory, The S&A Resource Report, a risk-free trial.
Is my work right for you?
I don't know. But let me tell you a little bit about it so you can decide for yourself...
My passion is research... and finding great investments no one else is talking about.
And as a geologist, my expertise spans the gamut of natural resources -- from oil and gas, to gold, silver and rare earth elements.
In my career, I've studied them all -- and have shown my readers how to make a lot of money by investing in them.
Keep in mind, these are the opportunities you're not likely to hear about from mainstream news and media sources.
For example...
- In 2006, I uncovered a tiny company that owned the largest collection of in-the-ground silver resources on earth... an amazing 171 million ounces... plus an additional BILLION ounces it was working to confirm. The amazing thing was, almost no one outside the mining community had even heard of this company, which gave my readers the chance to see gains of as much as 102% over the next 12 months.
- I also found a little-known copper company with a mine that had the longest remaining life of any major open-pit copper mine in the world. But what made this opportunity so interesting was that the company also had another world-class copper deposit, almost as big! Over the next 14 months, my readers had the chance to make 93% gains with this little-known stock.
- Just a few months ago, I found a small company (Addax Petroleum) with an inside track on getting big oil contracts in Iraq. We made about 56% in 3 months when a big oil company offered to buy the firm out.
- And recently, I learned about a company that had secured the largest un-mined gold deposit in the world. When I found this, no one was talking about it yet. We are already up 135% in just over a month... with A LOT more to come.
Like 30-year Amoco veteran Mike Hourihan:
"Matt Badiali's Report is my favorite newsletter... and I would recommend it to anyone."And Gerald Wilson, the director of an NYSE-listed exploration and production company:
"Your letter, in many instances, has confirmed good ideas under consideration and at other times introduced new ideas, which have proven to be very profitable! I look forward to your report each month and find it to be extremely valuable. Keep up the good work!"And Harold Dickens, PhD, who's spent the last 9 years in global energy services:
"I know all the big names in energy and energy services... but The S&A Resource Report has introduced me to faster growing, small energy service companies that are performing extremely well. I am very satisfied with the performance of these investments overall."Of course, I can't say for sure if The S&A Resource Report is right for you. But to help you decide, here's what I propose:
Try The S&A Resource Report for the next four (4) months, at no obligation.
Here's what I mean...
Simply start trial subscription today, and you'll have instant access to:
- Research Report #1 -- Shale Exploration in China
- Research Report #2 -- The Biggest Oil Boom Yet
Over the next four months, take your time and decide if The S&A Resource Report is right for you. If not, I'll send you a FULL refund, and you can keep everything you've received up until that point.
How much does The S&A Resource Report cost?
I think it's ridiculously cheap, especially considering all you receive, and the time, money, and effort we put into this work. The truth is, just one of the investment ideas I'll share with you could help you make many times the subscription price.
And it's not just me saying this...
"I think that The S&A Resource Report provides the best financial advice I have ever had, bar none... Parker Drilling Co. I bought at $2.75 and now it is at $5.07 for an 84% increase. Thanks, and keep up the great suggestions."
-- Doug Patelli, Albany, NY
"Matt, I have used your advisories a lot. On Northern Dynasty Minerals I made 167% and on Parker Drilling Company 161%."
-- Karl Blanchard, Austin, TX
"I have bought stock in the four companies you mentioned and as of today my profits are in excess of $4,000. Far better results and profits than any previous service."
-- Jared Plumber, Tacoma, WA
"Sold Rowan Companies and a total of $2265.08. As you can see I'm way head of the game. Thanks to your letters... [I'm] up $31,552.93 to date for this year.
-- Jason Murdock, Dover, DE
Before I give you the details on how to get started, however, I'd like to tell you about one more exciting opportunity going down in China -- a breaking story that could make early investors incredibly rich...
(could make you rich)
|
As I mentioned before, it's not just oil that China's gone crazy for...
A few years ago, the Chinese government started pouring billions into gold and silver.
They rewrote the country's mining laws, opening huge tracts of land to exploration and production. They began stuffing the treasury coffers with bullion. And they even erected a glittering new gold exchange in downtown Shanghai.
You've probably heard these stories. But I bet you haven't heard about this...
In order to develop a handful of the country's most promising mines, the Chinese government helped create (and took nearly 50% ownership in) a handful of very small mining operations -- a handful of stocks that, I believe, could soon soar.Now, I can just about guarantee you will not hear about this opportunity in any mainstream publication. I only know about it because of a contact in the industry, who recently met with officials in Beijing.
I'm talking about 100% gains... on each one.
So if you're interested, I've just written up the full details in an exclusive special report called: Government Backed Gold and Silver: How to Make a Ton of Money in China.
In this report, I'll detail everything you need to know about this opportunity -- exactly which stocks are involved and exactly how to get in.
And you'll have access to it, free of charge, as soon as you agree to take a trial subscription to my monthly Resource Report advisory.
So how can you get started?
The price of The S&A Resource Report is normally $99 per year.
But today I'd like to offer you the chance to try my research for 60% OFF the regular price.
You'll pay just $39 for an entire year or my work, including:
| • | 12 Issues of my monthly investment advisory newsletter, The S&A Resource Report, delivered on the second Tuesday of each month. |
| • | Research Report #1: | Shale Exploration in China: Your Key to 400% Gains. |
| • | Research Report #2: | The Biggest Oil Boom Yet: China Opens Up |
| • | Research Report #3: | Government Backed Gold and Silver: How to Make a Ton of Money in China |
Why so cheap?
Well, I figure the best advertising for my research is to let you see the actual work and the results for yourself. And to encourage you to give it a try, I'd like to give you the opportunity to review The S&A Resource Report at the cheapest price we've ever offered.
And remember: You'll have the next four (4) months to make up your mind.
In other words, you are only agreeing to try my work to see if you like it.
If not, no problem. Just let me know and I'll send you a full refund -- 100%. Everything you receive between now and then is yours to keep, my compliments.
To get started right away, Subscribe Now
Good Investing,
Matt Badiali
Editor, The S&A Resource Report
April 2010
P.S. There's one other opportunity I've recently uncovered that might interest you -- a unique precious metals operation that, if all goes as I think it will, could soon pay off a ridiculous amount of money. A similar operation recently returned 32,000%. As soon as you sign up, you'll have full access to this report as well, free of charge.
To get started right away...