America's New Cash Crop
You might remember the name John Rolfe from your history books... or perhaps a Disney movie.
He was among the early settlers that came to North America from England.
But it wasn’t his marriage to Powhatan’s daughter Pocahontas that brings him to mind today.
He also happens to be one of the most unknown influential figures in U.S. history.
You see, Rolfe was the person responsible for introducing “Orinoco tobacco” to Virginia.
This was a game-changer at the time. But first, some slight context...
At the time, Virginia’s native tobacco wasn’t very appealing to the settlers; in England, it was even less popular.
Rolfe, however, decided to introduce a sweeter strain of tobacco he had acquired in Trinidad.
In 1614, a ship named Elizabeth made port in London. Within its cargo hold were four barrels of Rolfe’s new Virginia tobacco.
These tobacco samples changed everything.
Within three years, more than 20,000 pounds of tobacco was shipped across the pond from Virginia.
A decade later, more than a million and a half pounds were grown in the state.
And just like that, dear reader, America had its first cash crop.
Today, a new lucrative cash crop is emerging: marijuana.
And with it comes all of the profitable opportunities that investors have craved throughout history...
But only one stands out.
Power, Power, Everywhere
Right now, I’m almost disappointed that the herd hasn’t picked this up on their radar yet.
Disappointed, but not surprised.
Look, the exorbitant energy consumption inside the rapidly growing U.S. marijuana industry is no secret.
They couldn’t hide that fact if they tried.
But let’s be fair here: You and I both know full well the kind of energy hogs these marijuana growing operations are today.
It takes about the same amount of energy to grow two pounds of marijuana as it does to drive across the country... seven times!
Yet that won’t stop people from growing America’s new cash crop.
In fact, the rapid acceptance of legal marijuana is causing a full-blown green rush. Based on a recent industry report, approximately 77% of growers plan on adding more square footage to their existing operations by 2019.
But it’s more than simply expanding operations...
It’s about control.
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It’s Time to Profit on America’s New Cash Crop
When nearly 40% of legal growing operations tell us they’re likely to grow their crop in a greenhouse, it’s obvious that they’re desperate to control every single factor that could affect the size of their yield.
Let’s push aside the fact that some states are only permitting indoor cultivation.
These companies want to be indoors, and we’re going to see the industry move in that direction. This year, roughly half of marijuana growing operations are located in warehouses.
Just 8% of growers have only outdoor operations.
More important is the growth potential...
As it stands now, nearly 70% of operations produced less than 2,000 pounds of marijuana during the last 12 months.
Demand is so high that last July, the Governor of Nevada issued a state of emergency due to its low supply of marijuana.
Make no mistake; every state is going to want a big chunk of revenue to add to their coffers.
It’s simply too good to pass up.
But here’s the catch... marijuana is still labeled as a Schedule 1 narcotic.
That puts any company that “touches the plant” at risk.
Fortunately, my readers and I have found a way to side step that risk entirely.
And it’s only a matter of time before investors figure out how a small, elite group of energy companies is banking billions on this situation.
I want to make sure you beat them to the punch.
Until next time,
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.
Energy Demand will Increase 58% Over the Next 25 Years
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