New Type of Fuel Gives Oil a Death Blow?

JR Crooks

The writing is on the wall.

That’s because OPEC is getting ready to deal itself a royal flush. Or so it seems.

Because something shocking is unfolding in the energy sector. And no one’s talking about it.

While we’re glued to the political news, here’s what’s effectively happening in the real world and hardly reported.

OPEC and non-OPEC producers including the top two exporters, Saudi Arabia and Russia, will hold talks on April 17th in Qatar.

A quiet gathering that will formalize a new global supply deal… a consensus we’ve not seen in 15 years.

Qatar’s Energy Minister Mohammed Bin Saleh Al-Sada said around 15 producers in and outside OPEC, accounting for about 73 percent of global oil output, supported the initiative.

The plan?

To put a freeze on oil output. To cut production and drive the price of oil past $70 a barrel. It’s a nasty effect in itself.

And oil responded handsomely.

On Thursday, March 17th, oil spiked above $41 a barrel briefly, trading close to a 2016 high. That was solely on the news of OPEC’s impending cozy gathering.

But as I have hinted, there’s something life-changing that is already happening and it will affect OPEC, me, you and everyone else in a positive or negative way.

You see, there was one reason OPEC wanted to drive down the price of oil. It’s all been a covert operation to kill its competition … American shale oil producers and enemies of Saudi Arabia.

For shale to be broadly profitable, oil has to sell at $60 to $70 a barrel.

So Saudi Arabia continues to pump crude at a fast pace in a bid to defend and win market share … at the same time driving down the price of crude.

It brought down with it American shale producers, ISIS’ black market funding, Russia’s economic stability and Iran’s negotiating power.

Some iconic energy companies like Chesapeake are nearly bankrupt with $12 billion in debt.

BHP Billiton was forced to write down the value of its U.S. oil and gas assets by $7.2 billion, admitting it needed $60 a-barrel-oil to see a “cash flow positive.”

Now that the damage is done OPEC is ready for redemption and to return things to "normalcy" with higher oil prices.

But let them …

Destruction Day Is Coming.
Oil Has a Silent Killer.

OPEC is living in a daze. An illusion. Afraid to admit the truth.

Their days are numbered. And like a badly wired time bomb, they will self destruct.

That writing is on the wall too.

Fifteen years ago former Saudi oil minister Sheikh Yamani, predicted that, " There will be vast reserves of oil — and no buyers. Oil will be left in the ground. The Stone Age came to an end, not because we had a lack of stones, and the oil age will come to an end not because we have a lack of oil …"

"… Fuel-cell motor technology — which can produce electricity will have a dramatic impact on the oil market. This is coming before the end of the decade and will cut gasoline consumption by almost 100 per cent. Imagine a country like the United States, the largest consuming nation, where more than 50 per cent of their consumption is gasoline."

Well that time is coming Fast!

A pollution-free revolution is coming, like it or not.

According to Bloomberg, "Big oil is about to lose control of the auto industry."

Demand for oil has fallen through the cracks lately, not because the world does not need energy anymore, but because new efficient types of fuel are making their way into our lives.

And "Oil demand has flat-lined for a decade," as Bloomberg puts it.

It’s safe to say this is the beginning of a lifelong trend.

Some forecast global oil demand growth falling from 1.8 million barrels a day this year to 1.2 million next year.

The OPEC cartel itself expects demand growth to fall to 1.25 million barrels a day, and some analysts see demand dropping even lower.

Oil of the Future

Why is oil consumption at risk of falling so rapidly?

It’s all about the rise of fuel cell vehicles. Or Electric cars.

Electric cars are moving from the laboratory to the showroom, then on to the streets. We’ve seen production surge from 200,000 vehicles in 2013 … to 400,000 in 2014 … to 740,000 in 2015.

That’s a solid average growth of over 80% annually.

It’s a trend that will drive fossil fuel vehicles off of our streets.

So what’s the new fuel that’s powering these new electric cars and unleashing a death blow to the mighty head of BIG oil and OPEC?

It’s powdered white and found in salt lakes in Nevada and South America.

Guys like Goldman Sachs already call it the, "Oil of the future."

Is it really?

By all accounts electric car giants Tesla and BYD, led by Elon Musk and Warren Buffett, are already creating cartels for this new powder fuel.

As energy investors we have no choice but to focus our attention to this new fuel and milk it for all it’s worth.

To find out more about this opportunity and how to stay ahead of other investors before this makes news … get further details here.

And be prepared to be blown away.

“JR” specializes in trading commodities, currencies and options. He has spent nearly 10 years analyzing financial markets and writing about global economics. JR honed his trading techniques and global-macro worldview alongside his father, Jack Crooks, at Black Swan Capital. JR also …