The World's Desperate Power Grab for Water
What Happens When the Water Trade Explodes
Picture living in another country.
Your house is cracked and crumbling. It's hot. Yet these things don't even register with you anymore.
You grab your ID and credit card as you head through the door and walk down the street to take your place in line — you don't carry cash anymore, because the MAC ran out days ago.
And even though the store is several blocks away, the line stretches around the block.
You already know you'll be in that line all day long, too.
Maybe you once had a job... but it doesn't actually pay enough for you to show up.
Perhaps you had plans to go back to school, but you brush that thought aside and think, “Why bother?”
Why? Because right now, your highest priority is to keep your spot in line so you can get some food — assuming the shelves won't be picked clean before it's your turn.
This may sound like a post-apocalyptic world to you, but the truth is that this is a bitter reality for some people.
This is the state of Venezuela right now, where excruciatingly long lines dominate the lives of its citizens.
Then you may think, “Hey, at least there's plenty of water to drink.”
Well, there is... if you wait in line!
Of course, there's one serious catch... you have to be there at the right time, on the right day, and if you can get there before the solitary truck that comes down your street on a weekly basis doles out all it has and drives away.
Truth is, most people can't fathom this situation.
I certainly couldn't.
After all, water is required for human life; surely at least that would be easy to get!
The problem is that water isn't just a utility anymore; it's a commodity.
It's bought and sold like soda — by soda companies!
Water has become a $13 billion industry already and is on the verge of becoming much, much more valuable.
And things are about to get worse...
I have no doubt that you've heard of California's ongoing war against drought. Many of my readers are struggling through that crisis as you read this.
And for about half a decade, the state has had to strictly regulate water use.
Some of those regulations even became permanent law recently.
But is it really surprising? Even after severe drought conditions were lifted in a few areas, most of the southern areas of the state are still running dry.
So it's no wonder that southern California is the planned site of the first-ever cross-border water utility imports.
The idea is simple: a desalination plant will be built in Rosarita Beach in Baja California, Mexico.
Phase one of the plant will produce 50 million gallons of water per day, and phase two will double that production rate and allow for the export of water from Mexico to California, likely to the still severely drought-stricken San Diego.
This will be the biggest municipal desalination plant in the world, and the first to send water across international borders.
And although this bi-national plant is a big step... whether it's in the right direction remains to be seen.
The Water Trade
Last year, we cheered the EU when it refused to allow Russia its latest giant natural gas pipeline. Not because the EU didn't need the gas, mind you, but because Russia was being a bully about it.
Prices in Russia were inflated beyond belief, and the EU had to do something to cut off its dependence on that supply line. There were even efforts to diversify the source of the EU's gas supply.
What's this got to do with water, you ask?
Just think if the same thing happened with cross-border water supplies.
Think on that for just a minute: what if another country could decide whether or not we got water?
Natural gas is one thing — remember, there are at least alternative energy sources to tap.
There are absolutely no alternatives to water.
If international water trade becomes as mainstream as, say, the oil trade, that would be an enormous shift in the world's power dynamic.
And yet this is already happening. CNBC recently reported on farmers in the southwest U.S. rebelling against the sale of farmland to Saudi buyers.
You see, Saudi Arabia already sees the writing on the wall. The country is now trying to move its farming here to the U.S. in order to decrease water consumption at home.
We've already seen what the House of Saud has done to the oil market... haven't we?
The bottom line is: water is the next big commodity ripe for the picking.
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We really can't ignore it anymore, because it's only a matter of time before the rest of the market catches on to the fact that water IS the most valuable commodity on the planet.
And while the rest of the market wastes countless hours watching the boom and bust cycles pass in the oil market, or maybe speculating on just how high shares of Nintendo will rise, the smart money is taking advantage of this precious commodity, pocketing some of the strongest long-term dividends available today.
In other words, most investors aren't paying attention to some of the most undervalued water stocks on the market — particularly one tiny investment gem that has been quietly making huge strides recently.
Not only has it generated unbelievable gains over the last few years for its shareholders, but it's also outperforming the biggest companies on Wall Street, and it's still headed higher.
I suggest you take just a few moments today and get the full details behind this stock right here.
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.
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