Oh sweet Alberta

With the incredible rise in the price of oil unconventional deposits are coming into favor. 30 years ago people thought it not possible to squeeze oil out of the Alberta tar sands, today over 1 million barrels a day are being produced here, with dramatic production increase expected in the coming few years. With increasing investment focus on the oil sands, juniors should soon come into favor with the markets.

Alberta Oil Sands Inc. (V.AOS) AOS has three major property interests in the oil sands, Fort McMurray, Hangingstone East, and Hangingstone West. Fort McMurray property consists of 28 sections, with a total resource assesment at 2.8 billion barrels. Hangingstone East property consists of 38.5 sections, with a total resource assesment at 1.15 billion barrels. Hangingstone West property consists of 51 sections, with a total resource assesment of 807 million barrels. This is a total of 4.757 billion possible barrels of oil. Now the recoverable barrels are much smaller numbers at this time, but regardless of this, the price of oil is not going to see a drop in price anytime soon, making AOS's properties more valuable by the day. With advancing technology, and diminishing conventional reserves, juniors like AOS will have their day in the sun, maybe even sooner then you might think.

AOS's Fort McMurray project is situated right in the middle of companies such as Imperial Oil, Talisman, and Encana, and their other properties border Petro Canada. With increased interest in the possible trillion barrel deposit in Alberta, it is only a matter of time before oil juniors like AOS sitting on prime land, become a serious investment oppurtunity. Watch out for this company, fun is just getting started in Alberta.

Recession?

You know what I hate? I hate all this constant talk of Canada possibly being in recession. The media just pounds this stuff into you, almost to the point where you begin to believe it, and sadly some do. Anyone who thinks outside the bubble knows exactly what is happening. The United States may be in some serious trouble, and in the past this would have most likely pulled us down with them, but this is a much different time. Canada is a resource based economy, and with the world advancing at incredible rates, it won't be to long before billions become modernized. Think of it this way, with 300 million people the United States, it accounts for 25% of what the world consumes in oil for one day. China a rapidly growing country with a pop. of 1.2 billion people will not take long to pass the United States in consumption. This gives you an idea of what sort of demand there will be for Canada's resources in the future, and Canada is packed with everything! The world no longer consists of only the United States, nations all around the world are advancing, thus creating a vast market, larger than ever seen before, and Canada will be the fuel for that market.

I wonder if the TSX has hit an all time high due to fear of recession? that must be it. Although pullbacks are going to happen, it is pretty obvious that Canada is a major player in today's market, and will continue to expand globally. The United States with trillion dollars in debt, and a collapsing dollar, is the country in recession, not Canada, do not be confused by this.

Let us know what you think, post your opinion.

Oil

Oil keeps rising, and we all wonder if it will ever drop, my bet is placed on NO. It is no secret that the framework of society is oil, take one look around you, nearly everything you see has been touched by oil in some form or way. Cars, planes, machines, plastics, pesticides, everything you can imagine uses oil, and when a whole society revolves around a non-renewable resource, and that resource is nearing it's life span, it can only equal one answer, high prices. Now some of you may say there is enough oil for the world to survive for many years to come, but let me use just one example that might change your mind. The Alberta Oil Sands, estimated at approx. 275 billion barrels of recoverable oil, the world's largest reserve. If the world were to run solely on these oil sands, it would take approx. 7.5 years for it to run dry, 7.5 years!, this is peanuts. Now I know the oil sands may hold over 2-3 trillion barrels of oil, but I am dealing with proven numbers. With ever increasing consumption and ever decreasing reserves the price of oil looks poised to rise for years to come. The scary thing is that if oil goes up, this means everything goes up, and this leads me to believe we will see a market boom unlike ever seen before.

Peak oil is no fairy tale, and anyone who has eyes and chooses to see it, will know where to put their money in the coming years. Now I could go on for hours, with piece after piece of evidence that supports what I say, but I will let you do your own DD and make your own decision. In conclusion, you just can't go wrong with putting your money into oil.

Stock to Watch for May 16th, 2008

After yesterday's pick going to PCQ, and PCQ seeing a +.25 cent (71.4%) gain today, I am going to stick with it for Friday. PCQ will really take off if news is released on their Quebec gas properties. I don't see anything standing in the way of PCQ going over a $1.00 in the near future, just take one look at the other stock plays in the area, and this will give you an idea of why I think this way. Another stock to watch out for is Cash Minerals Ltd. (V.CHX), CHX has taken a beating over the last couple days, and I believe they have far too much coal potential to stay down at these levels for long. Good luck to all of those who decided to jump into PCQ.

The little known gold play

Consolidated Spire Ventures Ltd. (V.CZS) is a small gold exploration company on the rise. Their prime holding is the Prospect Valley gold property located in British Columbia. The company recently released a National Instrument 43-101 compliant technical report on the property, and the news looks great. The estimates are between 220 000 oz. to 3.7 millions oz. of gold. Take a look at this article, Dow Jones' Brian Truscott noted in an April 9th story, "What makes this event rather unusual is the kind of geology this Canadian gold and silver exploration junior is sitting on: a low-sulphidization stockwork system that could one day lend itself to a high-tonnage, low-cost, open-pit, low-grade gold operation devoid of the normal contaminants often found in BC mines, such as lead, zinc and copper." While Truscott pegged Consolidated Spire's attributes, the company drew crowds at the PDAC 2008 convention in Toronto where AXcess News' Alan Fein noted in a story earlier in March that "several major mining companies met with CZS executives to discuss the company's gold properties." Now I would expect CZS to pull back a little bit, but once they start drilling and then confirming the gold, this stock is going to fly, and at the moment picking this thing up in the teens wouldn't be such a bad idea. Talk about a diamond in the ruff, with gold most likely heading over $1500 an oz. in the near future, you can't go wrong with a promising play such as CZS.

Stock pick for May 15th 2008

Petrolympic Ltd. (V.PCQ) trades on the TSX-Venture. The company had some troubles with filing their financials but released them today. With that bump in the road behind them PCQ is poised for a major run. They have major interests in the utica shale gas discovery in Quebec, and seeing how the other major players are all trading at $1.50 and above (PEA,GMR,ATI,JNX,QEC), PCQ would seem to have nowhere to go but up. Take a look at this one, you will not be disappointed.