Let's rewind the clock for a minute.

A year and a half ago, I had a discussion with my readers about tapping into Canada's next oil patch.

Those of you that have been with me for a while will immediately think of the oil sands. I won't hold that against you.

After all, we already know the important role the oil sands will play in Canada's future oil production. . . But that's not what I'm talking about today.

In fact, I want to alert you to a new Canadian oil investment. It's not your traditional IPO... but upside potential is tremendous. More on that below, and how you can get in on it before the news breaks. 

And, trust me, this is big news. 

First, let me explain what led to this.

What initially attracted our attention last year were the record land sales in Saskatchewan.

And you can't blame us for taking notice. . .

In April 2008, Saskatchewan raked in $265 million in revenue during its land sale auction. That single auction generated more revenue than all of the land sales in 2007.

Naturally, my readers were all over it.

Today, our stance hasn't changed in the slightest. If anything, we've become even more interested in the Weyburn-Estevan area.

But before I get too far ahead of myself, let's take a quick look at why Canadian production is becoming increasingly important to us.

The Backside of Peak Oil

Much of this story revolves around peak oil.

I'll let my readers make up their own minds concerning when a global peak in oil production will take place. Some believe it won't occur for another 5 to 10 years. . . some even push the date back 30 years. . . still, many of you think it's already passed.

Whatever your opinion on the subject, there exists one cold, hard truth that none of us can deny: Oil production in the U.S. peaked nearly four decades ago.

There's no getting around that fact. Put global peak oil aside for just a moment.

Since 1970, the U.S. has been sliding down the backside of the peak oil curve. It's that simple. Please feel free to check it out for yourself: Looking at the EIA data on U.S. field production is a sobering experience.

A Shining Light of U.S. Production

By now, you're well aware of Bakken oil production. I know the success that my readers are having with several prominent Bakken players.

Now we have news coming from producers that the Three Forks-Sanish formation beneath Bakken may be a separate reservoir. And if it turns out to be more than just a drip pan for the Bakken, we'll be smiling all the way to the bank.

However, make no mistake about our situation: As bullish as we are with the Bakken, we know that production there is not a panacea. U.S. production peaked almost 40 years ago, and nothing — nothing — will magically boost our domestic production back to 10.4 million barrels per day.

That was the highest amount of oil we've ever pumped out in one month, back in November 1970.

The name of the game today isn't to increase our production by 12 million barrels per day to eliminate our reliance on foreign oil imports. I haven't met one person that still believes that's a possibility — nobody is that optimistic.

Right now, the best thing we can do is lower our exposure to some of the riskier oil. That means cutting our ties with the Middle East.

And that, dear reader, is already happening. . .

Take a look at the EIA import data for yourself. Something happened that hasn't occurred for 21 years. In fact, it's happened twice already this year.

In March and June of 2009, Saudi imports fell below a million barrels per day. The last time that happened was in April 1988.

Perhaps they're finally starting to get the picture.

Canadian Imports on the Rise

While Saudi imports are steadily decreasing, someone has to be picking up the slack.

It's no secret where we're making up those imports: our neighbor to the north.

Even despite last year's oil price crash, imports from Canada have been on the rise. As you can see below, it's clear on whom we're depending for crude oil:

This time around, Canada's good fortune isn't from their oil sands. You see, not just the United States is developing the Bakken formation. It's also no secret that Saskatchewan's portion of the Bakken is what drew the most interest during last year's record land sale auction.

Tomorrow, the pot will get much sweeter for investors, as a small Canadian company is about to make big headlines.

However, it's not their production numbers that has my attention — rather, it's the area in which their focusing their efforts.

My readers of the $20 Trillion Report have been banking on these hot oil and gas plays all year. In fact, I know they've closed 11 winners in the last two months alone. Tomorrow morning, they're going to take a strong position in this small Canadian oil stock. By tomorrow afternoon, it'll be too late. . . which means this may be your last chance to get in on the ground floor. Click here to learn more.

You don't want to sit on the sidelines for this one.

Until next time,

Keith Kohl

Energy and Capital

Editor's Note: Looking to get your Bakken investments started? Just take a page from your fellow Energy and Capital readers. In fact, many of us know exactly how profitable today's top oil plays can be. That's how they closed 11 winners in just eight weeks. If you'd like to know how they managed it so far, I'd suggest checking out our new free report on the Bakken Formation.