Oilfield Daily News

Welcome to the Energy and Capital Weekend Edition — our insights from the week in investing and links to our most-read Energy and Capital and sister publication articles.

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To say that shale gas will play a major role in meeting our world’s energy demand is an understatement.

Take a minute and think how far shale gas has grown in the last five years…

It wasn’t until the success of the Barnett shale that U.S. drillers took notice. Although drilling the Barnett formation picked up considerably in the late 1990s, it wasn’t until 2006 that drillers struck it big.

Two things changed the course of shale gas development in the U.S.

The first was the advancements made in horizontal drilling. The second is that changes were made to the Clean Water Act in the 2005 Energy Policy Act. This change exempted natural gas drillers from disclosing the chemicals used in hydraulic fracturing.

For now, let’s push that hot-button issue to the side. I’ll cover it at a later date, so feel free to vent your “fraccing” anger at that time.

The point is, shale gas development exploded. It’s the main reason that our domestic natural gas production shot through the roof in 2008.

The shale boom extended beyond natural gas, too. Oil plays like the Bakken formation in North Dakota became wildly successful for investors.

It’s a story my readers at the $20 Trillion Report know that all too well. In fact they just recently earned a quick 33% gain after playing an upcoming Bakken producer.

Piggybacking on the U.S. shale fortune, both China and India are also looking to tap shale resources.

Reliance Industries, India’s biggest company, has made three shale gas investments in 2010. Some of you might remember when Reliance picked up a 45% stake in Pioneer Resources’ Eagle Ford shale assets for a cool $1.13 billion…

Now, the company is making a move into the prospective Horn River Basin in British Columbia. This time, their sights are set on Quicksilver Resources. As you know, I believe the Horn River Basin to be one of the best-kept secrets in natural gas discoveries.

China is taking a cue from the same investment page.

However, their target is much closer to home. ExxonMobil is supposedly in talks to develop an unconventional gas field the Ordos basin, located in northern China.

Now I’ll admit that ExxonMobil hasn’t been on my good list; I wouldn’t normally trust ExxonMobil to have much success in China.

However, I think their chances are much better after acquiring XTO last December.

For now, I’m sticking with the proven winners in U.S. shale — and so should you.

Enjoy your weekend,

Keith Kohl

Editor, Energy and Capital

P.S. Feel free to kick back and catch up on the top stories that have recently crossed my desk.

Options Investing Made Easy: How the Experts Trade Options
Most traders avoid trading options at all cost. The reason? They simply don’t understand how to do it. And trading options can be more lucrative than stocks and bonds. Imagine pulling-in a 338% gain in under two weeks! Let options guru Ian Cooper show you how easy it really is.

Oil’s Game-Changer: Why the BP Oil Spill is more Profitable than Ever
Three months ago, the U.S. oil industry changed forever. Yet the fallout from the BP disaster isn’t over; even now the public is screaming for heads to roll. In typical government fashion, the knee-jerk reactions by vote-hungry politicians is keeping the drillers out of the water. For three of our favorite oil stocks, however, the profits have just begun.

Investing in Offshore Oil Stocks: They Panic, We Buy
Energy and Capital’s Keith Kohl reveals six offshore oil stocks that are worth a second look to investors.

Energy and Metals Outlook for 2010: How to Invest for the Rest of the Year
Energy and Capital Editor Ian Cooper assesses the success of energy trades in the first half of 2010, and offers two ways to turn a profit in the second half.

The Decline of the U.S. Dollar: And the Perfect Scenario for Rising Gold Prices
Editor Greg McCoach gives the hard facts about the future of the U.S. dollar and recommends two ways to minimize the wealth.

The End of the Bush Tax Cuts: The Hammer is About to Fall
Editor Steve Christ examines the end of the Bush tax cuts and explains why it won’t be painless.

Herpes, The Jersey Shore, and Trading Secrets 11-20: Snooki Rings the NYSE Bell
Wealth Daily Editor Christian DeHaemer connects the Jersey Shore with herpes and, as promised, brings readers #11-20 of his trading rules.

Green Options: Twice the Money in Half the Time
Green Chip Editor Nick Hodge discusses a lucrative yet often misunderstood way to invest in everything green: green options trading.

Shale Gas Explosion originally appeared in Energy and Capital. Energy and Capital, a free 3x-per-week newsletter, offers practical investment analysis in the new energy economy.

Over the past few months, I’ve been telling you about the world’s most undervalued oil company.

It’s up 727% since I recommended it, and is still undervalued by more than 1,000%…

And this play, dubbed Stalin’s Lost Oil, still has plenty of room to run.

But today, I’d like to tell you about a company that could be the next big energy winner.

It’s the world’s most undervalued coal producer. 

And the value numbers are staggering. 

In fact the next sentence sums it up:

This 45-year-old company has more than 100 million tonnes of high quality, thermal coal, and yet it has a market cap of only $20 million.

That’s right. The company produces more than 500,000 metric tonnes of coal per year, and currently boasts a reserve base of 100 million tonnes (or more) of high quality thermal coal — the very type of coal that China covets.

This is no flash-in-the-pan startup… This outfit employs 1,200 workers and supplies about 15 percent of Mongolia with high quality coal.

So, why is a coal company that is usually valued at $5 per tonne of reserve now trading at twenty cents per tonne?

I’ll tell you why. 

This company is cheap for a number of reasons, the first of which is, that it is in Mongolia — which, as you know, is a euphemism for the middle of nowhere. 

But as we’ve seen with the 727%-plus gains from Stalin’s Lost Oil play, the story is getting out.

Mongolia is the next major commodity hotspot.

Pre-IPO pricing

The coal company you are researching used to be owned by the government, and has a forty-five year history of production. They were privatized and listed on the Mongolian Stock Exchange in 2003 after a pro-capitalist, democratic, free market government took over.

But just a few months ago, a private New York-based hedge fund acquired 54% of the company. This company has been near the top of list in Barron’s for profitable hedge funds. It makes its living by buying undervalued companies in frontier markets and unlocking that value.

This time, the plan is to take the company public in Hong Kong…

Which means you can buy today before it IPOs on a major international exchange.

In order to list the company on a major global exchange, the company hired a Western drill company to substantiate the amount of coal and produce a Joint Ore Reserve Committee (JORC) compliant reserve statement. 

Stick with me, this is important…

JORC is sponsored by the Australian mining industry and is a widely accepted professional reporting standard in Asia. This would qualify the company for a listing in Hong Kong.

(For the record, the last Hong Kong IPO, The Agricultural Bank of China, was oversubscribed and made $21 billion.)

This is what the JORC found:

This Mongolian Coal company is now trading at a low valuation of 20 cents per tonne of coal reserves. 

Other Mongolian companies like SouthGobi and Mongolian Energy trade at an average of $5 per tonne of coal reserves. So there’s a massive upside here — just as with Stalin’s Lost Oil…

But you want to be in before the Hong Kong listing. 

The company recently traded at US$ 2.95 per share with only 7 million shares outstanding, which means if the company starts to move, it will move fast.

And there are lots of positives here. The Mongolian Currency (MNT) is appreciating against the U.S. dollar:

And the Mongolian stock exchange was the best performing market this year — up 68%.

The way to buy this stock is at pre-IPO prices and wait for the listing in Hong Kong.

But this stock is not for slackers; you might have to send a few faxes…

That said, I’ve worked with this New York hedge fund before, and my readers have made a great deal of money on company’s like Hurricane Hydrocarbons, and on an Australian uranium company that was bought out by Paladin Energy for a high triple-digit gain.

(Please note that I am in no way affiliated with this fund, nor have I received payment or benefit.)

Catalysts

The basic catalyst for this Mongolian Coal company is that word of its basic value will get out — as a result of exports to China, promotion by the hedge fund, a Hong Kong listing, and the rising awareness of Mongolian stocks in general. 

You have to understand the value here. 

The company is so inexpensive that the rail spur it owns to the Trans-Mongolian Railway is worth $40 million alone. 

Again, this company has a market cap of $20 million and is sitting on 100 million tonnes of coal. It would have to go up by 25 times to be of fair value even to its Mongolian peers!

But you can’t wait. The shares are starting to move. It was up 11% last week to 4,001. (USD1 = 1352.5 Mongolian Turgid (MNT))

That puts your per share price at $2.95.

This is one of those trades that comes along once a decade. It’s not for the herd. 

But if you have what it takes, join us and get rich.

Christian DeHaemer
Editor, Energy and Capital

Profit from Mongolian Coal Stocks originally appeared in Energy and Capital. Energy and Capital, a free 3x-per-week newsletter, offers practical investment analysis in the new energy economy.

The stage is set for the next vote on offshore drilling.

The U.S. House of Representatives is ready to vote today. The question at hand is reworking the current offshore drilling system.

So what’s at risk?

For starters, my concern is how involved the government will be in shaping the future of offshore drilling. They’re already talking about eliminating the cap on damage claims, which is currently $75 million.

I don’t think the offshore industry will wait around for an answer.

I briefly talked about the latest move by four offshore players, ExxonMobil, Chevron, ConocoPhillips and Royal Dutch Shell. Those four have banded together, each putting up $250 million to set up a new rapid-response system, which would be available in the event of an oil spill. Specifically, the money will be spent on various underwater equipment that will be able to capture up to 4.2 million gallons of oil in depths up to 10,000 feet.

BP’s Macondo well is half that depth.

With the BP nightmare still under the media’s spotlight, we can probably expect the election-seeking politicians to come down hard on the offshore industry. We’re talking about tighter regulations more more restrictions on deepwater drilling endeavors.

Of course, all of this will have a devastating effect on deepwater development, making it more expensive for companies to drill into the seabed.

I can’t help but ask my readers, will the offshore industry recover, eventually?

Let me know what you think.

Until next time,

Keith Kohl

The Offshore Drilling Vote originally appeared in Energy and Capital. Energy and Capital, a free 3x-per-week newsletter, offers practical investment analysis in the new energy economy.

Be honest. Has BP’s management makeover really changed your opinion about the company?

More importantly, have you let the media frenzy over offshore drilling sway your trading decisions?

If you answered yes to the latter question, I have some bad news for you.

As the anti-offshore sentiment reaches a feverish pitch, offshore stocks have taken a beating. In last Saturday’s “Weekend Edition,” you got a firsthand look at how difficult the market has been for these Gulf players. None were spared, as share prices were herded off a cliff.

Now, it’s time to buy into their panic. Here’s why…

Does offshore oil have a future?

Yes.

I know there are a few people out there who don’t believe in the peak oil theory; but no matter how optimistic you are about future oil production, you can’t deny the important role that offshore oil will play in meeting future demand.

Let’s get some of the facts straight:

• 25% of the world’s oil production comes from just 20 oil fields.

• Most of these massive fields were discovered prior to 1950 and have been producing since.

• Nearly all of these fields have passed their peak production.

• Another 50% of the world’s oil production comes from just 110 other fields.

• The remaining production is produced by approximately 70,000 smaller fields.

• The average oil field has a natural decline rate between 8%-9%.

The problem is that oil discoveries have been declining for more than four decades. Furthermore, companies are pushing further and drilling deeper than ever before.

The lack of major oil discoveries i not fiction, nor theory.

And we can’t forget the story of the Cantarell oil field, either…

The once-mighty Cantarell field used to be among the largest oil fields in the world. Discovered in 1976 by a fisherman, the death of Cantarell will eventually force Mexico to become a net oil importer. Pemex, Mexico’s state-run oil company, estimates its 2010 crude production currently averages 2.5 million barrels per day.

I can’t put it simpler than this: The world needs offshore oil.

That includes deepwater targets.

Offshore drillers: best friends

Like it or not, offshore drillers in the Gulf of Mexico have become best friends. The media fallout from the Deepwater Horizon disaster has officially lumped them all together for the public to condemn.

Today, the word offshore and oil have become synonymous with BP.

And being labeled with BP is inescapable — no matter what a specific company’s safety record says.

Recently, four oil companies have banded together to form a rapid-response system to deal with future deepwater oil spills.

ExxonMobil, Chevron, ConocoPhillips, and Royal Dutch Shell have announced they are committing $1 billion to the creation of this plan. Although $250 million bucks a pop sounds like a hefty price tag, keep in mind that as of this morning, BP has spent approximately $256 million in claims.

According to the four companies, the plan could be in place as soon as in six months from now. At that pace, it’ll just be in time for the latest drilling moratorium to be lifted.

Coincidence?

The value of offshore stocks

Over the last two weeks, my colleague Christian DeHaemer has laid out his “Forty Rules of Trading.” If you haven’t read it yet, I suggest doing so today. His words of wisdom could save you from making a costly mistake.

Chris’s trading rules had me daydreaming this morning. Several years ago, I was at odds with myself on whether or not to buy a particular oil stock.

He said, “Well, would you be comfortable owning this stock five years or ten years down the road?”

I was.

And when nearly every energy company took a nosedive in 2008, I asked myself that question on a daily basis. At one point, back in March 2009, the price had been severely beaten down. When several readers expressed concern as the stock plummeted to $1.12, our long-term confidence prevailed.

Rather than dump our position along with everyone else, we bought. A year later, that beaten-down oil stock opened at $17.41.

The reason I’m bringing this up is because I get that same feeling when I look at offshore stocks… If you have the same outlook for oil as we do, the decision is a no-brainer.

Of course, there are other signals.

Although no single factor will make us put our hard-earned money into a stock, one indicator for us to measure the company’s value is calculating its PEG ratio. It’s a good rule of thumb to use, and one that’s helped make my readers a nice profit. The idea here is that lower the PEG ratio, the better.

Many of the offshore players in the Gulf of Mexico are trading with very attractive PEG ratios. And as you can see, the market hasn’t been too kind to them during the last three months:

All six of these stocks have a PEG ratio below 1. I don’t believe there will be a better opportunity than right now.

The moratorium is still being touted by the media, most of whom have no idea how crucial offshore production will become.

Eventually, these deepwater drillers will get back on their feet.

Until next time,

Keith Kohl
Editor, Energy and Capital

Investing in Offshore Oil Stocks originally appeared in Energy and Capital. Energy and Capital, a free 3x-per-week newsletter, offers practical investment analysis in the new energy economy.

With a monumental strain on the global financial system that lead to unparalleled governmental intervention and stimulus, we found ourselves knee-deep in a chaotic, directionless market.

We were met with unbridled volatility and strain that may impact the financial markets for at least another year.

And they are likely to be met with even more chaos moving forward.

But despite all of this turmoil, we still found a way to not only beat the market — but outperform it significantly.

As the Dow gained a measly 5% between January 2010 and the beginning of July 2010, Pure Asset Trader readers racked up an average gain of 28%, which included 24 closed winners and just one loser.

That follows the 40 winners and just three losers racked up in 2009.

But we’re not here to gloat. We’re simply assessing what Pure Asset Trader has done for readers, believing it’s best to grade our recommendations, whether the results are flattering or not.

Notable first half 2010 winners include Hudson Resources (147% gain), Brigham Exploration (50%), Canada Lithium (75%), Lithium One (45%), Basic Earth Sciences (55%), and Entree Gold (30%).

But the rest of the year is likely to be even more impressive…

And today, I give you two sectors to invest in now.

Buy more natural gas stocks

We already called the $4 bottom of natural gas — watching it soar above $5 just weeks later. And we’re still buying, believing it could run to $8 before all is said and done.

You see, summer is the weakest time of the year for natural gas consumption. This sets up a trade for natural gas stocks — buy in June-August, sell in December-January, when North American heating demand should have natural gas trading at its year highs.

Last summer, natural gas stocks suffered. But like clockwork, September 2009 saw natural gas experience a large seasonal jump in prices.

In fact natural gas prices roughly doubled from $2.50 to $5 by January 2010. This occurred even though the market fundamentals for gas were poor.

This was a good 4-month trading rally. Easy money in the bank, as Wealth Daily Publisher Brian Hicks calls it.

Even President Obama is bullish on natural gas:

The time has come, once and for all, for this nation to fully embrace a clean energy future,” Obama said. “That means [making] everything from our homes and businesses to our cars and trucks more energy efficient. It means tapping into our natural gas reserves, and moving ahead with our plan to expand our nation’s fleet of nuclear power plants. And it means rolling back billions of dollars in tax breaks to oil companies so we can prioritize investments in clean energy research and development.

Sure, we’ve all heard that supply is out-pacing demand… That our ability to horizontally drill for shale gas has made the supply picture seem unlimited… And that the short-term outlook is bleak…

But that’s herd mentality thinking of fools… Buy natural gas now, and hold.

Load up on rare earth — and this coming IPO

As we’ve reported in Wealth Daily and Energy and Capital… there’s a very real, coming boom in rare earth.

China currently holds 97% of the rare earth market, and is tightening its grip again with plans to cut exports by 72%.

And as we’ve said in the past, if we don’t find more rare earth supply:

Electronics could start disappearing from shelves… Products that depend on these materials would see prices skyrocket, possibly bankrupting the very companies that depend on these sales… Green technologies would suffer… And strategic and defense weaponry (guided missiles, for example) wouldn’t be produced as quickly.

The impact on electric batteries and motors would be crippling. Toyota’s Prius depends on 2.2 lbs. of neodymium in the hybrid’s electric motor and 22-33 lbs. of lanthanum in the car’s battery pack.

And there are still plans to double production of the Prius from one million to two million units. But it’ll never happen without rare earth supply. The President can call for a million electric cars all he wants, but they all depend on available rare earth supply.

It’s the same story with wind power; turbines use massive amounts of rare earth. Right now, all of those rare earth materials are coming from just one place: China.

All of this demand will no doubt send prices for rare earth metals soaring — especially given the idea that global demand for rare earth will increase six percent a year between now and 2014 (from about 124,000 metric tons to about 180,000 metric tons).

Sure, we have possible deposits in Idaho, Wyoming, and Alaska, giving us hope that U.S. rare earth production will get us by.

And we can always get a little help from Greenland, Canada, and Australia…

But the clock is ticking. Developing new mines can take years.

And it’s not as if the crisis is a ways off… It’s already here.

It’s why you want to be in stocks like Hudson Resources (HUD.V), Lynas (LYSCF.PK), and the coming IPO from Molycorp, a company described as the only rare earth minerals producer in the Western Hemisphere.

Its Mountain Pass mine (for which it has plans to reopen and expand) is one of the world’s largest rare earth mines outside China.

Other than rare earth and natural gas, the Pure Asset Trader team is also looking to buy silver stocks in coming weeks. We’ll keep you updated with our picks and a new report coming out sometime in the next few weeks, so keep an eye on your inbox.

Meantime, make sure you’re on board for these and other near-term buying opportunities.

That is… if you’re interested in watching us close another year of sizable winners.

Stay Ahead of the Curve,

Ian L. Cooper
Energy and Capital

Energy and Metals Outlook for 2010 originally appeared in Energy and Capital. Energy and Capital, a free 3x-per-week newsletter, offers practical investment analysis in the new energy economy.

Is this the Unconventional Destruction of LNG?

We’re going to have to pick a side, sooner or later.

Our decision may not come in the next six to twelve months, but you’ll have to eventually choose between liquefied natural gas (LNG) and unconventional shale gas.

In North America, the decision has all but been made for us. It’s true, there was a time when the LNG was being hailed as the wave of the future. The proof is in the numbers, too. Between 2002 and 2003, U.S. Imports of LNG jumped 121% to 506 billion cubic feet. By 2007, our LNG imports had jumped another 52% to 770 billion cubic feet.

For other investors, it was a new era for natural gas.

My readers and I were a little more cautious. As early as 2007, unconventional shale plays like the Barnett shale had caught our attention.

And just as we expected, the development of shale formations across the U.S. had a devastating effect on LNG. You can see the EIA statistics for yourself. During 2008, LNG imports had dropped like a stone, down 54% to 351 billion cubic feet.

I know what you might be thinking. Everything tanked in 2008, didn’t it? After all, that’s when it hit the fan.

I’m not buying that argument.

Take a closer look at those EIA numbers on LNG imports. As you can see from the monthly statistics, LNG really started to plummet in November, 2007.

That was the turning point.

In November, the year-over-year LNG imports declined by 43%. Of course, the market meltdown and demand destruction helped keep LNG imports low.

On the flip-side, shale gas production skyrocketed to more than 2 trillion cubic feet in 2008, a 70% increase over 2007.

Now, this is a story that we know well. The unconventional shale boom since 2007 has been profitable for us.

And right now, China is undergoing the exact same thing. With a potential resource of approximately 900 trillion cubic feet, you can bet the farm that the Chinese are going to try and develop it. Remember, that’s the total resource amount. The IEA believes the country’s shale gas reserves are roughly 26 trillion cubic meters.

Is it really surprising to find China’s oil and gas companies taking stakes in North American shale plays.

For China, where coal meets 68%of their energy demand, this decision is a no-brainer.

However, LNG isn’t going down without a fight. The fact that China’s shale development is in its infancy means that LNG could prove to be the short term answer, assuming that demand continues to grow.

I’d love to hear your thoughts on the matter.

Do you think we’re going to see a similar destruction in Chinese LNG imports? Will it be as profitable?

Until next time,

Keith Kohl

Editor, Energy and Capital

Is this the Unconventional Destruction of LNG? originally appeared in Energy and Capital. Energy and Capital, a free 3x-per-week newsletter, offers practical investment analysis in the new energy economy.

Things are going to start to get real ugly, real fast for the U.S. dollar.

Fortunately, a group of well-informed investors will be able to minimize wealth-damaging effects of the collapsing greenback with a few simple asset reallocations.

Here’s what I’m talking about…

The U.S. gov’t financial foundation is crumbling

It doesn’t seem like a day goes by anymore that I’m not shocked and/or angered by the actions of the United States government. It’s as if the powers that be are deliberately ignoring the Constitution and trying to destroy the United States as fast as they possibly can.

This is quickly happening in not just one or two areas, but on many fronts — and all at once.

Let’s look at a few of the most recent glaring examples…

The financial affairs of the U.S. government are in shambles.

The country has a national public debt of over $13 trillion that’s growing by tens of billions everyday. And no one has any clue how this massive burden can or will be dealt with.The U.S. currently spends nearly $4 trillion a year, while only taking in just over $2 trillion in tax revenues. As a result, the White House predicts the budget deficit will reach a record US$1.5 trillion this year.

And the U.S. government is currently borrowing 41 cents of every dollar it spends.

You don’t need to have a PhD in economics to know that this is a completely unsustainable model for any organization…

Because the government is spending so much more than it’s taking in, U.S. officials have been frantically traveling the globe like beggars in order to borrow money to pay the bills.

The problem with this, of course, is that major buyers of American debt have already had their fill of U.S. dollar-backed financial instruments, and are now cutting back on adding U.S. treasuries to their monetary reserves.

Countries like Russia, China, Saudi Arabia, Iran, and Venezuela are cutting down — or completely eliminating — the U.S. dollar from their reserve holdings.

And this spells big trouble for the U.S. dollar in the near term.

This global dollar dump will push the dollar even farther down in the international currency markets, in just a matter of months.

GAME OVER for the U.S. dollar!

The economic recession, which is currently keeping nearing 10% of Americans without jobs, has decimated tax revenues on all levels of government.

The IRS recently reported that personal income tax collections are down 4.4%, yet we keep spending money like a bunch of drunken sailors on leave in a Singapore port city.

To survive, the U.S. government will try to invent new taxes to impose on anything and everything… But American citizens are already taxed to death — and quickly reaching the point where they will be unwilling to pay anymore.

The conflict between U.S. government and its citizens is such that it could rapidly transition from mild tax protests to violent tax revolt scenarios.

The consequences for decades of abuse of public funds at all levels of government and our system of credit in the United States have finally caught up to us.

All of this paints a very robust picture for the gold and silver markets.

In fact I don’t think you could dream up a better scenario for creating massive profits from precious metals and their mining shares…

The perfect scenario for rising gold prices

I wish that I could change what’s going on in Washington and New York. But I can’t do that myself…

So I am left with figuring out a way to minimize the fallout and profit from the fiscal irresponsibility of the once great U.S. government.

As I like to say, the ultimate form of success at such at time is to not only survive; but to survive well. And the best way to survive well in this environment is to own physical gold and silver and quality junior mining stocks.

The portfolios of my Mining Speculator and Insider Alert investment advisories have many of the kinds of companies that I believe will do phenomenally well as the United States goes through the painful progress of financial reckoning.

In the 10 years that I’ve been an independent investment analyst, I have never felt better about or more confident in the group of companies I am now covering in both of these advisories.

For those who remain committed and patient with the precious metals and mining shares, the rewards in the near future will bring a major smile to your face.

So keep your head high and stay focused on what we are doing.

The biggest gains yet in precious metals will soon be realized.

Good Investing,

Greg McCoach
Investment Director, Mining Speculator and Insider Alert

P.S. Unfortunately, things are going to get much worse from here, folks… Don’t believe for one second the crock of lies served up on a daily basis by the government media complex that touts, “All is well!” or “The recession is over!” It simply ain’t so.

To survive well, you’ll need to be in gold and silver. And one of the easiest ways to leverage precious metals prices is through the Mining Speculator and Insider Alert portfolios. We’re currently closing double- and triple-digit gains left and right. You can learn about one of my most recent scores, right here.

The Decline of the U.S. Dollar originally appeared in Energy and Capital. Energy and Capital, a free 3x-per-week newsletter, offers practical investment analysis in the new energy economy.

Welcome to the Energy and Capital Weekend Edition — our insights from the week in investing and links to our most-read Energy and Capital and sister publication articles.

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The Macondo saga continues…

Even after BP finally managed to stop oil from spewing into the Gulf of Mexico, the company still can’t catch a break.

This time, another threat has moved into the area: tropical storm Bonnie.

The good news is that BP received permission to leave the well capped during the storm.

The bad news is that BP’s relief well efforts have been delayed again.

When Bonnie formed late Thursday, BP made the decision to move its drilling ships.

As you know, once the relief well is completed, BP will be able to pump the Macondo well full of mud and cement, permanently plugging it. Now, the threat of Bonnie has moved the completion date back to late August.

Although we don’t know for certain what Bonnie’s impact will be, remember that storms during June pushed a huge amount of oil onshore. And don’t forget that the delay until late August assumes no other interruptions take place.

Do you think BP’s luck will prevail?

An industry under siege

Every oil and gas investor has taken a look at the offshore industry at least once since the Deepwater Horizon disaster.

If they say they haven’t, they’re lying to you.

Make no mistake — the last three months have been brutal for those offshore drillers:

Once the relief wells are completed — and if all goes well — then BP will have turned a major corner in this disaster.

I don’t believe it’s a matter of if drilling will resume in the deepwater Gulf of Mexico…

Eventually, the market is going to take full advantage of those beaten down offshore stocks.

At what point do you see a huge buying opportunity?

Stay tuned, because I’ll have my answer for you next week.

Enjoy your weekend,

Keith Kohl

P.S. In case your work week was nearly as hectic as mine, I’ve included some of the top stories to cross my desk recently.

Oil’s Game-Changer: The Aftermath of the Deepwater Horizon Disaster
April 20, 2010, will go down in the record books as the day the oil industry changed forever. The disaster has become a living nightmare to BP and other offshore drillers. But there’s no denying the game-changing profits that investors will make as the enormity of the situation comes to light. Continue reading to learn more…

The Russian Oil Blunder: Mongolia’s Drilling Horde
When the Soviet government failed to develop the massive oil field they discovered in Mongolia, a veritable wealth of crude was lost to the history books — until now. Now one tiny company is now sitting on $51 billion of Stalin’s lost oil fields. Read our latest report to find out how investors are taking advantage of Mongolia’s newfound oil wealth.

China’s Silent War for Canadian Energy: Is it Time to Buy the Oil Sands?
Editor Keith Kohl explains why China’s grab for Canada’s oil sands may have been a huge mistake.

Tiny Nuclear Company Leads American Resurgence: The Nuclear Story Fox News Isn’t Telling You
Energy and Capital Editor Nick Hodge shares with readers details on a little-known nuclear company that’s set to explode on certain hidden news…

The World’s Hottest Region for Gold Exploration: Two Small Gold Stocks
Wealth Daily Editor Luke Burgess discusses the investment highlights of investing in junior gold stocks with exposure to major gold trends in Nevada, including the Carlin and Cortez Trends.

Approaching Solar Earnings Season: Big Banks on Solar Stocks
Green Chip’s Nick Hodge talks about big banks warming up to the solar sector, and how you can turn a quick profit as earnings season.

China’s Energy Future: 1.3 Billion Chinese Can’t Be Stopped
Wealth Daily Editor Steve Christ takes a look at China’s energy future and explains what it means for the price of oil.

Smart Grid Reaching Critical Mass: Smart Grid Saves Energy, Makes Money
Energy & Capital Editor Nick Hodge discusses the coming-of-age of the smart grid via a Kohl’s case study.

How to Front-run the Chinese, Legally: Investing Secrets for an Empire’s Life Cycle
Publisher Brian Hicks explains the seven stages of an empire’s life cycle and how they pertain to the United States, China, and most of all, your portfolio.

No Relief Yet for BP originally appeared in Energy and Capital. Energy and Capital, a free 3x-per-week newsletter, offers practical investment analysis in the new energy economy.