Baltimore, MD--A few days ago, we covered the basics of oil sands extraction. Today I want to take a closer look at what will soon be (if it is not already) the largest oil deposit in the world.

I'd like you to take a moment and think of what the world's largest deposit of oil would look like. Just close your eyes and imagine it. Don't worry, I'll wait for you to finish.

It might be safe to say that a couple of you drifted back to the past, remembering the historic gushers like Spindletop, spewing over 100,000 barrels a day into the humid Texas night.

But there's a good chance that most of you went to a vast desert in the Middle East. Perhaps a few of you floated to a specific place, like the massive oil fields in Saudi Arabia. Some may even have been standing right next to the rigs at the giant Ghawar field.

No matter where in the Middle East you were picturing yourself, Saudi Arabia, Kuwait or Iran, I would wager that the landscapes were similar: a hot, dry desert.

Either way, I think you'll be quite surprised when I tell you what I was thinking.

I instantly thought of a wide open mining pit surrounded by a thick forest. Gigantic trucks, larger than any others in the world, rumbling along 24 hours a day, 365 days a year. These multimillion-dollar machines, alongside a myriad of equally large hydraulic shovels and cranes, guzzle over 550,000 gallons of diesel every year!

And when I said gigantic, I meant it. Imagine getting passed on the highway by this...

The weather is brutal, sometimes dropping 40^o below zero or more. Once I stepped off a plane wearing a T-shirt when it was 10^o below. Let me say this from experience: A bone-chilling effect immediately washes over you, demanding you cover up or face the harsh consequences. And my incident wasn't even close to 40^o below. The truth is, at those temperatures it's deadly to leave any patch of skin exposed.

Yet this bitterly cold vision isn't a fantasy. Under the snowy Canadian landscape lies the world's largest oil deposit.

Oil's New Frontier

There's between 1.7 and 2.0 trillion barrels of bitumen located in the Athabasca oil sands deposit. The Alberta government has estimated that 10% of this, or roughly 174 billion barrels, is recoverable.

But I think this is an extremely conservative figure. Many analysts believe the oil sands of Alberta holds over 300 billion barrels of oil reserves, much more than Saudi Arabia's 258 billion barrels.

When it comes to Saudi oil, I'm full of skepticism. With an annual decline rate between 8% and 12%, they're going to be hard pressed to keep up production. And their reserves are a major subject of debate. The Saudis do not release their oil field data.

Let's not forget how cooked up the numbers could be. Back in 1989, Saudi Arabia was sitting on 169 billion barrels of oil reserves. The next year, that number suddenly exploded to 258 billion barrels.

So it's in places like Fort McMurray (the hub of the Athabasca oil sands) where we'll find the future of oil.

Have We Missed the Boat?

The simple answer is no.

If there's one thing the 21^st century has brought us, it's expensive oil. The price of a barrel of oil has more than tripled since 2000. This has caused hundreds of billions of dollars in investment money to pour into the development of Canadian oil sands.

Those investors smart enough to recognize the potential have profited handsomely.

For example, take a look at one of the biggest companies involved, Suncor Energy, Inc. Having the foresight to put your money into these guys just four years ago would have netted you a nice 500% gain:

With a market cap of $41.65 billion, this company is absolutely huge. But $90.29 per share is a hefty chunk of change.

I believe there are much smarter (and thankfully smaller) companies in which to invest my money. Personally, I like to get as much bang for my buck as I can.

All of these smaller cap companies are in an excellent position to exploit rising energy prices. I want to invite you to join us in Philadelphia this September and find out how you can take advantage of the impending energy crisis.

If you'd like to learn more, just click here: http://www.angelnexus.com/o/web/2140.

Until next time,

Keith Kohl

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Those Alberta oil sands are too low quality. To get out any amount of useable stuff, too much water and natural gas has to be used. Even then, the blue-eyed Arabs of Alberta will tax away most of the economic profit, which is why so many oil companies are leaving Alberta.