The Biggest Oil Opportunity in the World ? And How You Can Profit From It

Where is the second biggest deposit of oil reserves in the world?

In the oil sands region of Alberta, Canada. Oil sands are a thick, viscid mixture of bitumen, sand, clay, and water. Alberta's oil sands is comprised of 3 regions with the Athabasca area being the largest and the closest to the surface. Underneath these gooey tar sands lie trillions of barrels of oil.

So then you may ask why have we been so dependent on Mideast oil. Why haven't we just stayed nearby and relied on Canada? In fact, Canada is the largest supplier of crude and refined oil to the United States, having supplied 2.1 million barrels per day in 2004. But the percentage supplied to the US and other parts of the world is about to grow much larger.

The big difference between oil sands and oil from the desert sands of the middle east is difficulty of extraction. The oil sands process essentially entails extracting bitumen from the sand, and upgrading it to light crude oils. Easier said than done because this is thick stuff and has been expensive to mine and extract. However new technologies are changing the equation and making it much more cost-efficient to mine and extract from the oil sands.

Mining operations are used to produce reserves close to the surface. For oil that is deeper under ground, Steam-Assisted Gravity Drainage (SAGD) and Cyclic Steam Stimulation (CSS) are used. Other examples of new technology and extraction methods include burning bitumen instead of gas to produce steam, a solvent-assisted production technique called VAPEX and a system that injects air into the oil well and ignites it to stimulate oil flow.

In addition to improvements in technology, higher oil prices are fueling expansion in the oil sands, and a lot of people want in. The Chinese, for instance. In April, China National Offshore Oil Corp., predominantly owned by the Chinese government, bought nearly 17% of MEG Energy Corp. for $122 million. The company is developing a northern Alberta project estimated to pump 25,000 barrels of crude from the oil sands by 2008. And Canadian oil pipeline giant Enbridge has announced a preliminary deal with PetroChina to anchor a $2-billion oil pipeline to the West Coast.

So how can you benefit from the increased exploration, production and sales of crude oil from the oil Sands of Alberta? Choose among the stocks of companies that are investing in the area and applying new technology to extract oil more cost-efffectively.

Companies than can capitalize on the increasing role of Canada's oil sands in the world's energy needs include Suncor (NYSE: SU), Encana (NYSE:ECA), Canadian Natural Resources NYSE:CNQ) Deer Creek Energy (DCE.TO), Total S.A. (NYSE:TOT), Petro Canada NYSE: PCZ), and, with its acquisition of Terasen whose pipelines are well-positioned to transport growing production from the Alberta oil sands, Kinder Morgen (NYSE: KMI).

And while it may remain somewhat more expensive to extract oil from Alberta than from the Mideast, consider the effects of global politics, terrorism and turmoil, and the chilly wilds of Northwest Canada become very attractive indeed.

Leon Altman creates and runs websites that uncover opportunities for investors. To find more opportunities in oil and gas as well as other sectors, subscribe to his free Select Sectors letter at http://www.investingin.com/SL-Oilandgas.htm and check out his websites: http://www.InvestingIN.com and http://www.SmallcapRecap.com

---

Now is the Time to Invest for Your Retirement!

Yes, it's the time we've all been waiting for?tax season!... Read More

Use of a Franchise Business as a Family Tax Planning Strategy

Suggesting the use of a franchise business as a vehicle... Read More

Emotions: A Traders Worst Enemy; Get Rid of Fear and Greed - Youll be Glad You Did

You hear it over and over and over in books,... Read More

When NOT to Invest

Unfortunately, many investors who are seduced by the lure of... Read More

Investing Offshore for Retirement

As an expatriate you are in a privileged savings and... Read More

Why You Need To Buy and Sell Gold Coins (Part 5)

Grading coinsThe condition of a coin is commonly summarized by... Read More

Making It Second Nature

Not long ago I was laying on my son's floor... Read More

Creating a Financial Future--Putting Your Plan Into Action Part 2

Real Estate can be a useful tool for investing. The... Read More

Learn How to Lose and Risk Management

One of the leading traders on Chicago Mercantile Exchange, because... Read More

Get Wealthy With the Rule of 72

When it comes time to retire how many people would... Read More

Critical Investors Business Daily Responsibilities - If not Followed Could Cost You Millions!

When thinking about the investors business daily responsibilities in today’s... Read More

Selecting Rules for Investing and Trading

There are three important differences between investing and trading. Overlooking... Read More

Discover the Foundation of Retiring Wealthy - The IRA!

Let me tell you about some legal ways to avoid... Read More

Guru Focused: Robert Olstein?s Short Sells

While it is rather rare that value gurus sell stocks... Read More

How Do I Start Investing Online and What Are Some Basic Tips?

If you are new to investing online, don't put your... Read More

Missleading Fund Names Wreak Havoc On Investor Returns!

Mutual fund managers use fake fund names to part you... Read More

Are You An Investment Dummy Like Me?

I am good at a few things. I can certainly... Read More

Gold and Silver Maple Leafs Get New Packaging

Gold Maple Leafs and Silver Maple Leafs are receiving packaging... Read More

An Old Dividend Stock Investment Idea, for a New Generation

Death and taxes! The certainties of life! And then, of... Read More

Find a Methodology and Minimize Investment Madness

There are many reasons to be investing these days, and... Read More

The Arrow-Debreu Contingent Claims Model of Investment

Throughout the discussion of speculation and stability, we emphasized that... Read More

Better Investing Made Easy

If there were one piece of advice that an investor... Read More

Numismatics are for Collectors, Not Investors

As a precious metals investor, you may heard much about... Read More

Advice for International Investors on How to Safeguard Their Profits

What are the risks?Today, investors are increasingly turning to global... Read More

The Differences Betweeen the Wealthy and Everyone Else

I recently received an e-mail from a young lady who... Read More

Short Selling for Investors

Shorts. Let's see. If there are shorts there must be... Read More

Ask The SEC

Who is the SEC and why should I ask them... Read More

Stock Market Leaders and Laggards

Leaders are stocks that breakout immediately when the market confirms... Read More

Investing Pointers for Neophyte Investors

If you know next to nothing, how do you go... Read More

Looking For a Safe Investment? Try a Certificate of Deposit

If you are looking for a safe investment and you... Read More

It Must Be Joe Cockers Market

Agonizing displays of poor theatrics failed to entertain my mind... Read More

Preholiday Trading

The Light Crude Continuous Contract closed at $66.13 a barrel... Read More

Creating a Financial Future - Putting Your Plan Into Action Part 1

This column has previously discussed "picturing the future that we... Read More