• Featured Story

    Empty fuel

    For many years, industry experts have been sounding the alarm that America, and the world, are about to run out of oil.

    Every expert who's predicted "the end of oil" has been wrong in the past. But with global energy consumption at an all-time high, and much of the world's economy dependent on oil, the question is: Are we running out of oil?

    Here's everything you need to know about today's oil market...

Peak Oil

Another Shoe Has Dropped… and It's a Big One

I wasn't more than 30 minutes outside of D.C. the other night before my cell phone started ringing.

The calls involved breaking new developments overseas that promise to have a big impact on the global energy markets. They concerned a major global energy situation that is likely to create a domino effect that will have consequences for U.S. domestic policy.

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A Big Time Squeeze for Refineries is About to Begin

Energy oil barrel

After banking some very hefty profits for Energy Advantage and Energy Inner Circle subscribers on refining stocks earlier this year, the entire sector now is about to land "between a rock and a hard place."

Once a high-flying place for investors to earn substantial profits, refiners have been under pressure for the last two months. But that's actually just the beginning of what's to come.

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These Oil Stocks Are the Big Winners in This Year's "Summer Pop"

I have been "in the field" for the past several days and will be back in circulation later this week. But I wanted to send you a note on what's been taking place recently.

The last two trading sessions have seen a spike in oil stocks. The rise has been focused on companies that provide services to early-stage field development, as well as for crude production.

Now, we have witnessed a similar "summer pop" in each of the past three years. It tends to signal a rise in expected medium-term demand for both crude oil and oil products.

However this time around, the improvement isn't reflected in companies across the board, but rather in those emphasizing geographically specific field plays.

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How to Invest in Oil's Final Frontier: The Arctic

Polar bear

Investors searching for how to invest in oil in 2013 should be focused on these latest developments from the Arctic.

In fact, countries are racing to get a piece of what could be the final frontier for oil...

As ice melts in the Arctic region, oil and gas trapped beneath the water becomes more accessible.

Money Morning Global Energy Strategist Dr. Kent Moors recently explained to Money Morning members about the search for Arctic oil and gas.

He spoke about the years-in-the-making U.S. Geological Survey's Circum-Arctic Resource Appraisal. The study found that 84% of the total undiscovered oil and gas left on the planet is located above the Arctic Circle, mainly offshore and in three huge basins that lie under shallow seas.

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Why the "Death of Peak Oil" Still Won't Mean Cheap Oil

Energy oil barrel small

Today (Wednesday) an analyst from Citigroup became the latest lemming to declare the death of peak oil.

In a report entitled "The End is Nigh," Seth Kleinman says a combination of flattening demand and rising supply will cause oil prices to slide slightly by the end of the decade to $80-$90 a barrel.

But while oil companies have made many large new discoveries over the past few years, including big shale oil finds in North America and Australia as well as deepwater finds in the Gulf of Mexico, that doesn't mean oil prices will fall.

In fact, according to Money Morning Global Energy Strategist Dr. Kent Moors, it's far more likely that oil prices will continue to rise over the next decade.

Moors points out what most other analysts seem to be missing - that all of the new oil finds present many challenges that will add to the cost of extraction.

"None of this new volume is light, sweet crude," Moors said. "The average wellhead costs continue to go up, and that moves its way downstream to processing, wholesale, and retail."

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This Key Energy Metric Could Make You A Lot of Money

Last week I discussed what EROEI is-and how to use it.

This week I'd like to talk about how this key metric affects the balance of your energy investment portfolio.

Now, this is certainly not the only element in determining preferable stock moves, but it's critical that you know the EROEI because it could make you a lot of money.

Recognizing the real elements that determine the genuine cost of energy production, EROEI is becoming an important factor in estimating profit margins.

And those margins certainly influence the performance of a stock as we've seen all across the energy value chain in recent months.

EROEI refers to the amount of energy used to produce energy.

If this ratio produces a figure of 1.0, EROEI is telling us that it takes one barrel of oil equivalent to produce one barrel as a result.

Anything under 1.0 means that more energy is consumed in the production process than is gained as an end product.

EROEI has the advantage of being a useful yardstick throughout the energy curve - from upstream production sites (wellheads, generating facilities) through midstream (gathering, transit, storage and initial processing) to downstream (refineries, terminals, wholesale and retail distribution, end use).

Some applications of EROEI are already in wide usage, although we don't tend to think about them in these terms. Energy-efficiency ratings on appliances, heating and cooling systems, windows, or building supplies are an application at the end of the energy curve.

But how can we use this to fine-tune an investment portfolio?

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What Insiders Don't Want You to Know About "Peak Oil"

Why did the oil industry impose a media blackout at a recent summit of industry giants in Mexico? The answer explains why thirsty nations are already pitted against each other in a cutthroat brawl for ever-dwindling oil supplies. Read this report to find out two ways to profit from the coming shortage of black gold.

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Ghana May Kill Exxon's $4 Billion Oil Deal

The government of Ghana may kill Exxon Mobile Corp.'s (NYSE: XOM) plans to buy a $4 billion stake in a giant offshore oil discovery from Kosmos Energy LLC. The move could help China expand its growing presence in the region through its state-owned oil company China National Offshore Oil Corp. (NYSE ADR: CEO).

Ghanaian Energy Minister Joe Oteng-Adjei sent a letter to Exxon last week informing the company that the government wouldn't approve the deal with Kosmos. The letter said the government is "unable to support an Exxon Mobil acquisition of Kosmos's Ghana assets," according to a copy reviewed by The Wall Street Journal.

The government said Dallas-based Kosmos had shared critical information about the field with potential buyers without its permission. Ghana also said Kosmos had left Ghana's state-run oil company, Ghana National Petroleum Corp. (GNPC) out of discussions held to determine how the field should be developed.

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If U.S. Oil Companies Aren't Winning Bids in Iraq, Who Is?

Iraq has auctioned off more proven oil reserves in the past six months than are collectively held by the United States, Mexico, and the United Kingdom.

But U.S. oil companies have signed surprisingly few development contracts – and foreign rivals have swooped in to scoop up major deals.

Take last weekend, when Iraq wrapped up the biggest oil-field auction in history. Major new deals were announced by Europe's Royal Dutch Shell PLC (NYSE: RDS.A , RDS.B), OAO Gazprom (OTC ADR: OGZPY), Lukoil (OTC ADR: LUKOY), China's China National Petroleum Corp. (CNPC), and Malaysia's Petroliam Nasional Berhad (Petronas).

The U.S. oil majors – ExxonMobil Corp. (NYSE: XOM), ConocoPhillips (NYSE: COP) and Chevron Corp. (NYSE: CVX) – were nowhere to be seen.

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Despite its Decline, Oil Remains a "Must-Have" Profit Play

By Keith Fitz-Gerald Investment Director Money Morning/The Money Map Report Commodities may be down, but they're not out – and they shouldn't be out of your portfolio, either. As the investment director for Money Morning, I'm invited to a large number of speaking engagements each year. It's something I enjoy, and it's quite useful, too, […]

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