AM 1150 Kelowna - Radio Rallies & Reversals

On the subject of oil, Marin Katusa of Casey Research says:

"The Gulf spill may have changed U.S. priorities, costs, and energy supply for years, but it hasn’t changed the fact that the U.S. still needs energy. And while Obama’s green energy plans may well bear fruit, it will be some time before they can power the entire country.

As many European countries have learned, it’s best not to let your energy supply be in the hands of someone who isn’t really your friend. But for the U.S., the most likely alternative for domestic oil is the most surprising one – the Athabasca oil sands of Alberta, Canada.

Canadian oil sands are some of the biggest and most controversial oil deposits in the world. But there’s a new technology in town that could revolutionize the entire industry – Steam Assisted Gravity Drainage (SAGD).

SAGD technology essentially pumps steam into the ground to liquefy the stiff heavy bitumen and heavy crude oil, and make it thin enough to be pulled out of the ground. No giant holes in the ground, no toxic tail-ponds or destroyed forests, no massive amounts of carbon emissions, and it also wins on finances.

A few companies are at an advantage, with the expertise and cash flow to be at the forefront of SAGD technology. These are the companies that are positioned to benefit from the upcoming spike in demand. Knowing who they are will help balance out any portfolio affected by the Gulf disaster."

GB