Follow America's Second-Richest Man to "Chinada"
It's a Supply-and-Demand Mega-Story That is Going to Last for Years
The U.S. will soon have a new neighbor—Chinada.
It's all happening due to a classic supply-demand scenario… with a twist.
And here's the twist:
The U.S. Is Practically Pushing Canada
The developing story…
At a historic moment when Canada is emerging as the "Saudi Arabia" of the Western Hemisphere, the U.S. is suddenly turning its nose up at "dirty" Canadian oil as unworthy for consumption south of the border.
Ottawa is not pleased.
Astride a mighty dragon (well-fed on $1.3 trillion in U.S. debt), China flies to Canada's rescue.
China has plenty of money to buy all the Canadian oil it needs—15 million barrels per day by 2020. They're all but begging to buy it. So is India, which will need 5 million barrels per day by 2020, along with other emerging Asian economies.
China—as Beijing loves to point out—is only "one pipeline away."
Meanwhile, the U.S. gives the impression that if we don't buy Canada's oil, the oil will stay in the ground.
Message from the real world: If the U.S. spurns Canada's oil, IT WON'T STAY IN THE GROUND!
Denied U.S. business, Canadians aren't going to quit the oil business and content themselves with exporting more maple syrup.
President Obama can bad-mouth oil all he wants, but the rest of the world—especially the billions moving into the middle class in developing countries—just want gasoline, diesel, electricity… and plenty of all three.
And Canada has nearly 2 trillion barrels of oil. The world—especially fast-growing nations in Asia, led by China—is going to want that oil for a long time to come.
Chinada Is Calling
A select group of Canadian companies are in superb position for a profit surge as Canada pivots to China and other Asian countries.
Investors who act BEFORE the oil starts flowing across the Pacific will be in place for windfall profits.
Note: I said Canadian companies. This is an excellent opportunity to profit from the need for oil in China/India/Asia without investing directly in those countries.
Even better for us, the profits to date haven't even started to reflect the boom to come. It's a great buying opportunity.
And it's a long-term opportunity, too.
Oil is still key to the world's energy future.
Did you know this?
In the Year 2035, Oil Will Still Be Number One
That's not just my opinion.
The latest projections from the International Energy Agency (IEA) give a glimpse of global reality nearly a quarter-century from now:
What's clear from the IEA's projections is that the world will continue to need safe, reliable and affordable energy over the next 25 years—and likely for much longer than that. And oil and gas will head the list.
With a welcoming investing climate and millions of barrels' worth of pipeline capacity coming on line, Canada and the oil sands are perfectly positioned to meet these needs.
All of which begs the question…
Who Needs the U.S.?
Recently, when queried about U.S. haughtiness concerning Canadian oil, Prime Minister Stephen Harper all but shrugged it off. He told Reuters, "Canada must focus on markets that are growing."(My italics.)
That was a crisp slap in the face to the stumbling "U.S. recovery."
The cheeky PM promptly jetted off to China, where he called for closer links between the two countries. "Diversifying energy exports to Asia is a national priority," Harper said, in a parting shot.
Two current stats tell you all you need to know about Harper's confidant stance…
Even with muted growth of late, China's economy is still expanding 341% faster than America's.
China is still the fastest-growing major economy in the world, and its growth is strongly related to oil consumption.
Once an oil exporter, China is now desperate for oil to fuel its growth.
The Asian giant is set to be the world's leading oil importer by the year's end, overtaking the U.S.
By the end of 2014, China will be importing nearly seven million barrels a day, while U.S. imports will drop to just over five million.
It's expected that China will be importing 75% of its oil by 2035.
The rising demand for oil in China and the increasing ability to export it has already nearly doubled the price of Canadian oil. It's shot up from about $45 to $85 a barrel in less than a year. That's cash in the producers' pocket that flows directly back to shareholders.
China: Hungry for "Canadian Takeout"
In fact, the Boys in Beijing are courting players in the oil sands like lovesick suitors.
Zhang Junsai, China's ambassador to Canada, paid a recent visit to Calgary.
Zhang emphasized his country is "most anxious to deepen ties" with America's next-door neighbor.
To date, Chinese companies have poured U.S. $30 billion into Canada's oil sands and natural gas assets.
Recently, Chinese National Offshore Oil Company (or CNOOC) bought Nexen Inc., a significant player in the oil sands, for $15.5 billion—Canada's largest foreign acquisition ever.
Last year, PetroChina bought out their partner Athabasca Oil Sands Corporation's stake in the MacKay River oil sands project for $680 million, becoming the first Chinese company to wholly own an oil sands development.
In 2012, Sinopec paid $2.2 billion for Daylight Energy, a Canadian conventional-oil and natural-gas company. In 2010, it paid $4.7 billion for a stake in the massive Syncrude oil-sands project in Alberta.
Chinese national oil companies now own about 10% of all Canadian oil-sands operations.
The flood of Chinese buyouts and investments has reached the point where Prime Minister Harper called a halt on the sale of Canadian energy companies to China.
No matter. China has a new Number One need…
Wanted: Gateways to China
When Ambassador Zhang visited Calgary, he referred to Alberta as "a land flowing with oil and gas." He slyly added, "But where are they going?"
Little wonder that the Chinese want to help the Canadians with infrastructure development, especially projects that will move oil and natural gas from the sands of Alberta to the West Coast for export.
Tellingly, a generous portion of Chinese money spent on Canadian energy has flowed into the effort to guide the $6.6 billion Northern Gateway pipeline through the regulatory process.
China is banking on the proposed pipeline from the Alberta oil sands to the British Columbia coast. Millions of barrels of oil literally pouring into tankers headed straight for China.
To be sure, Northern Gateway is in no way a done deal.
But it still has solid odds of succeeding if it can meet key environmental targets proposed by regulators.
Regardless of the outcome, Canada has many more energy cards to play in the quest to sell energy to China and other Asian nations.
And the Canadian government is solidly committed to pipelines.
Prime Minister Harper declared, "[The pipeline delays] underscore the necessity of Canada making sure that we are able to access Asian markets for our energy products. And that will be an important priority of our government going forward."
In a nutshell, Pipelines are Canada's economic arteries, and the country needs to strengthen them.
Even with the delays, pipeline companies—with the federal government's support—are launching new projects aimed at moving Canadian oil and gas to the world.
Just announced: a plan to build one of the world's longest pipelines. Stretching 2,700 miles, it will carry 1.1 million barrels of crude per day from the oil sands in Alberta to refineries and ports on Canada's East Coast.
If this pipeline were in the U.S., it would stretch from Beverly Hills to New York City.
Oil producers have mega-ambitions for this mega-pipeline. In addition to shipping crude to U.S. refineries along the eastern seaboard, they want to export oil by tankers to China and India. Since it runs through mostly existing pipeline, the project has a leg up in winning regulatory muster.
Still another pipeline is planned to deliver 660,000 barrels per day of oil to the same region targeted by the delayed Keystone XL pipeline—the U.S. Gulf Coast. The project, also a mix of new and existing pipelines, is expected to breeze through regulatory approvals. Recall, one of the goals of Keystone is moving oil through the Midwest to where it has access to China and other markets.
Also bound for China: Canadian natural gas.
PetroChina, China's largest oil and gas producer, owns 20% of a liquid natural gas (LNG) export terminal planned for British Columbia's northwest coast. When built, the terminal will be capable of exporting up to 12 million tons of LNG, or two billion feet a day, to China and other Asian customers. That's nearly 20% of Canada's total LNG exports.
In the end… the oil and gas are going to get out of Canada.
The Coldly Realistic Truth
Reality can be cruel, particularly to environmentalists. As a recent report from the Woodrow Wilson Center think tank observes, "We cannot snap our fingers and be off hydrocarbons tomorrow, nor can we snap our fingers and move instantly to renewable sources of energy."
Reasonable minds can agree (especially on a cold January morning) that we'll need oil for the next half-century. We can also agree it's a good idea to diversify our energy sources and cut down on greenhouse-gas emissions.
Canada's destiny is to distribute their rich resources to an energy-hungry world.
I believe they will fulfill that destiny. That's how I'm betting with my money.
As Canada's treasure chest of energy is liberated and marketed to China and the world, it will produce an enormous profit windfall for a select group of Canadian companies producing and transporting that energy.
One of them is TransCanada, the developer of the monumental, 2,700 mile-long Energy East pipeline. The Alberta-to-the-Atlantic artery will be a major boon for a company that already owns or has a stake in 42,000 miles of natural-gas pipelines moving 14 billion cubic feet a day. That's 20% of North American demand. TransCanada is a solid buy. That's just the beginning, however.
Just look at a few more Chinada Windfall investment opportunities I want to tell you about:
That's just a sampling.
To grasp the full significance of this partnership, you first need to remember that Canada now possesses the second-biggest oil reserves in the world.
Altogether, Canada's oil reserves are the largest accessible reserves outside of Saudi Arabia. That's just for starters.
As drilling technologies improve (and they are at a rapid pace), Canada could easily overtake Saudi Arabia in proven reserves within a decade.
The Chinese are well aware of this.
In the last year and a half, Chinese companies have invested over $15 billion in Canadian oil development.
Also lusting for Canadian oil: India, Australia, Japan, Thailand and South Korea. Other countries will follow. The big money will continue to pour into Canada's oil fields. Count on it. The reasons are compelling...
One of the most powerful is simply this: The developing nations of the world want the same standard of living the west has enjoyed for decades with all the consumer goodies, gadgets and comforts we take for granted. Access to plenty of oil is the proven way to achieve that better life.
All They Need to Release This Torrent of Canadian Oil is Access to Global Markets
There are ample reasons to believe Canada will liberate its treasure house of oil.
Chief among them: the most favorable drilling regulations in the world, both environmental and regarding foreign investment.
Prime Minister Harper built his career in oil-rich Alberta and shares its energy-friendly attitude.
At a time when countries like Nigeria, Venezuela and the Congo are shaking down resource developers for a greater share of the profits… when North Africa and the Middle East appear more unstable than ever… and when Russia under Vladimir Putin is acting more like a KGB-run fascist state every day…
… Canada is making things easy for foreigners to buy a piece of the petroleum action.
But here's all you really need to know…
Enhanced global access to Canadian oil through additional exports will trigger an unprecedented wave of investment in the Canadian oil shares. This will create a new generation of energy-stock millionaires… even billionaires, whether it's via the Pacific, the Atlantic or the Gulf of Mexico.
My team and I have spent the past 10 years crafting a portfolio of Canadian trusts, stocks and funds in energy, banking, utilities and real estate.
My Canadian Edge advisory service will open up this new world of investing for you. In my view, there's no better place to stash your cash for spectacular dividend yields and some darn good capital gains, too.
Canada has a lot going for it today. Especially from the standpoint of the American investor.
The Northern Tiger never had a sub-prime housing crash like, say, just about every other country on Earth you'd ever consider visiting! And Canada's banking system is so stable and solid, it's been ranked number 1 in the world for the past 5 years.
What we have across our northern border is one of the world's most stable, investor-friendly environments.
Maybe the best thing I can do is to let my subscribers tell you about investing in Canada with Canadian Edge…
"The money I've spent on Canadian Edge is the best I have ever spent. I have bought thousands of shares of Canadian trusts, and they have been profitable beyond my wildest dreams."—Vern A.
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"This is the best advice you have ever produced. You address every aspect of this investment with informative and insightful information… with the world's best dividend and capital growth potential."—Chuck Smith, a longtime reader
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Investing in Canada today is like stepping into a time machine and traveling back to an era when taxes were only 15% a year and our government at least TRIED to live within its means.
Canada is a country where business executives believe in paying back investors generously, and where 10% dividends are as routine as maple syrup in the fall, rather than merely the stuff of investor fantasies—like here in the U.S.
While the tightwads of the Dow dribble out weak 2.8% average dividends, Canadian firms routinely crank out up to four times more—and they often send them out monthly.
There are 300 Canadian income trusts and high-yielding corporations on the market today.
At Canadian Edge, we know them all like the backs of our hands. We don't just examine charts and make phone calls. We get our hands dirty and visit the headquarters, factories and production sites as well.
We look at a company from every angle. Then—and only then—we assign each trust we follow a safety rating on a 1-to-6 scale. Super-safe trusts get the coveted 6 rating while the riskiest are rated 1.
This takes all of the guesswork out of investing across the northern border, so you can sit back and collect your distribution checks.
Don't forget: You won't find this wealth-making intelligence anywhere else. No other advisory covers Canadian trusts and high-yielding corporations with the same depth as Canadian Edge.
Really, There's NO Other Country
I mentioned above that Canadian executives—unlike many "celebrity bonus-hog" CEOs in the U.S.—believe in paying their investors back… and paying them well.
This is absolutely true. I know it's hard to believe in this day and age, but those 10%-and-up dividend checks prove it.
Of course, not every Canadian company is a good place for your money. But I think you'll find the few we recommend in Canadian Edge with generous dividends and steady capital gains are as close to a "perfect world" for investors as you'll ever find.
For example, right now we're racking up some pretty impressive capital gains…
If you're after income, we've got some very attractive yields…
These gains and yields, by the way, are all current portfolio positions—with plenty of room to grow.
I'll bet you could become accustomed to such gains—compared to the frustrating, pogo-sticking non-performance of the U.S. markets over the past decade.
Join the Happy Band of Americans Piling Up Golden Retirement Portfolios North of the Border
Here's what you can look forward to as a Canadian Edge subscriber:
Unlimited Access to My Weekly and Monthly Analysis Online. We monitor 153 high-yielding Canadian stocks and income trusts, and put the strongest into our two portfolios. In every new monthly issue, you'll get a "high-yield pick of the month." This guarantees you a steady stream of cash cows most investors will never hear about.
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When you sign up today, you'll also get TWO SPECIAL BONUSES. To get you going, I'll rush you copies of my new special reports.
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Have Questions About "Going Canadian"?
We've got the answers!
I know you're probably not accustomed to investing outside the U.S., so I make sure each online issue of Canadian Edge is packed with specific instructions and expert advice to guide you every step of the way.
How will your Canadian profits be taxed? Should you be worried about sudden policy changes from the Canadian government? How will fluctuations in the U.S. dollar and "loonie" affect your profits?
Our articles and special reports are written in plain English to help you understand these issues in just a few minutes. By gaining insight on investing in Canada, you'll be able to profit enormously no matter what's happening in the U.S. economy.
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Start the profits pouring in with my top Chinada picks now.
I hear people complain there's "no good place" to put their cash these days. I want the chance to prove them wrong—to show you that the best Canadian companies are the most rewarding and safest places on Earth for your nest egg today. But you must get in now if you want to invest BEFORE the gateways to China swing open (and they will!), and reap the windfall profits that will flow into the stocks set to soar from the China-Canada partnership.
I wish I could see you a month or two from now when you receive a new issue of Canadian Edge and whistle at the profits you've made… or when the generous dividend checks arrive in your mailbox.
Please keep me informed of how my recommendations are working for you—I sincerely want to know. I really hope you'll join us.
Try Canadian Edge.
Try it now by activating your no-risk subscription.
You'll be so glad you did.
P.S. As soon as you join Canadian Edge, you'll discover the stocks set to soar from the China-Canada partnership. Heed my prediction: Canada WILL export its oil and gas to China and the world. When this happens, it will unlock the Canadian oil sands and light oil from shale, nearly 2 trillion barrels of it. The result will be an unprecedented wave of investment in the region. Investors who seize the moment will be rewarded with the windfall-profit bonanza of the decade. Make sure you're one of them!
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