Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Friday Stock Market CRASH Following Israel Attack on Iranian Nuclear Facilities - 19th Apr 24
All Measures to Combat Global Warming Are Smoke and Mirrors! - 18th Apr 24
Cisco Then vs. Nvidia Now - 18th Apr 24
Is the Biden Administration Trying To Destroy the Dollar? - 18th Apr 24
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Canada Oil Tar Sands - My next great investment trip!

Companies / Canadian Stock Market Oct 24, 2007 - 01:38 AM GMT

By: Money_and_Markets

Companies Tony Sagami writes: In a few days, I will again head out in search of the next great hidden investment gem. As is often the case, I will be traveling well off the beaten path, to a place completely unsuitable for Gucci loafers or Armani suits.

But you might be surprised to learn that I'm not headed east across the Pacific this time. Instead, I'll be venturing north … way, way north.

My destination? Alberta, Canada.

My mission? Investigating what Time magazine called the "greatest buried energy treasure," something that "could satisfy the world's demand for petroleum for the next century."

There is an Asian connection, which I'll talk about in a moment. But first, let me give you some background …

Northern Alberta Is Sitting on the Biggest Petroleum Deposit in the World!

There are 685 million barrels of proven oil reserves in the Middle East.

Meanwhile, there are 300 billion barrels of proven reserves up north … and another TRILLION barrels that are just waiting for recovery technology to improve.

That's eight times the oil in all of Saudi Arabia!

This isn't the type of gushing oil that made Jed Clampett rich, mind you. It's in the form of tar sands, which resemble gooey coffee grounds.

These two-story-high trucks can haul as much as 400 tons of oil sand!

For centuries, Native Americans used the material to seal their canoes. But the technology to extract the valuable oil has now made tar sands not only economically important but wildly profitable.

Tar sands are a combination of clay, sand, water, and bitumen, an extremely heavy form of crude oil. So instead of being pumped from the ground, the bituminous sands are mined. Next, they're run through a separation process that uses steam and solvents to extract the oil. The process currently recovers roughly 75% of the bitumen at an average cost of $10 a barrel.

How Tar Sands Become Usable Oil

1. Giant shovels excavate thousands of tons of soil and clay.

2. Oil sand is piled high into monster Caterpillar trucks, capable of carrying 400 tons at a time.

3. The trucks dump their payload into crushers, which grind it down to fine oil-coated grains.

4. The sand is transferred via conveyor to a cyclofeeder, where it's mixed with hot water to produce a slurry.

5. The slurry flows to the extraction facility, where large centrifuges separate out the oil-rich bitumen.

6. Bitumen flows to a giant oven where it's heated to remove impurities such as sulfur and nitrogen, leaving only usable crude oil.

7. The crude is sold to offsite refineries, which produce gasoline.

Better yet, the petroleum industry is spending billions on research to find new technology to make it even cheaper. I expect the $10-a-barrel cost to rapidly fall closer to the $3 average that OPEC spends to pump a barrel of oil.

There's no doubt that this is already becoming a huge business. More than one million barrels of oil are produced from Canadian tar sands each day, making up 40% of Canada's total oil production.

And Canada is now the largest single supplier of oil and refined products to the United States.

So you see, these tar sands could free the rest us from our dependence on Middle East oil. Think about that … absolute and complete energy independence!

With oil pushing $90 a barrel, Canadian tar sands can also make investors a pile of profits. You can see why I'm headed to Alberta to figure out the best way to invest and profit from these massive oil deposits!

Right now, they can get oil out of sand for $10 a barrel. Soon, that might drop to $3 a barrel!

When It Comes to Finding Great Companies, I'm in Good Company!

I'm not alone in my interest in tar sands. Two of the smartest investors in the world are pouring billions into these projects.

The first is oil expert T. Boone Pickens, who is staking his sizeable fortune on tar sands. As Pickens told CBS News, "We're managing $5 billion here. And, about 10% of it is in the oil sands. So, it's the largest single investment we have."

The second person is a man that very few Americans have heard of. This man is Chinese, lives in Hong Kong, and is frequently called the "Warren Buffet of Asia."

He controls a vast telecommunications empire … a massive construction company … even the Panama Canal! And just like T. Boone Pickens, he has invested billions in tar sands, too.

T. Boone Pickens realizes how much potential Canadian oil sands have.

Look, if these two legendary investors are pouring billions of their own money into Alberta's tar sands, you can bet they aren't doing it for fun and games.

I think it's the right time to follow their lead, and that's why I'm heading north.

There are dozens of companies in the tar sands business, and I suspect many will make a bundle up there. However, I want to find the one company that is going to really knock the cover off the ball.

It may be the company with the richest reserves. It might be the one developing a key technology that will make it even cheaper to convert bitumen to oil. I already have a short list in my mind, but the only way to know for certain is to go up there and see things for myself.

Stay tuned!

Best wishes,


P.S. I can't say which tar sands company is the best investment yet, but I'll know when I return from Alberta next week.

It's only fair that my Asia Stock Alert subscribers find out first. So if you're not yet a subscriber and you want to jump on the tar sands recommendation right away, sign up for Asia Stock Alert today .

P.P.S. Larry and Martin also recognize the huge profit potential of natural resource investments, and that's why they're holding a FREE online briefing this week. To reserve your spot at this historic event, just click here .

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit .

Money and Markets Archive

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Matt Osbourn
24 Oct 07, 19:43
A company you should look at while in Canada

PBG:TSX is a company that has resources and THAI technolgy . The market cap of this company has gone from $50 Million to almost $3 Billion. The next three yearsd it should on a worst case basis make $10 Billion. They have the best Tech for recovering In- Situ Tar sands.

Rob. M
13 Feb 10, 05:44
Would'nt a green investment be a safer bet?

Given the growing consensus that anthropomorphic climate change is very very real... i'm concerned that an investment in such a dirty resource (5x the CO2 equivalent of regular crude) is a mistake.

Wouldn't a punt in an area of 'green' technology be a smarter move?

Andrew McKillop
15 Feb 10, 13:03
tarsand oil

Maybe you published this as a joke, to provide comment, or something like that ?

This sales pitch for tarsand oil is stuffed with unreal numbers, impossible, crazy, laughable figures.

I wont waste your time with a list of what Tony Sagami and his pals would call "counter claims", but just say that in 1975-1978 for 3 years I was an in-house researcher on energy at the Canadian Science Council, many times visiting Alberta. More recent visits were in 2007.

The basic problem and methods used are still the same: how to get the goddam stuff out of the ground ? In any case, production costs as low as USD 10 a barrel are impossible unless natural gas and water are completely free, zero price, as simple as that.


Andrew McKillop

Post Comment

Only logged in users are allowed to post comments. Register/ Log in