WONDERFUL PIPELINE PROFITS: THE O'LEARY REPORT

Ladies and gentlemen, Ben O'Leary here, and let me tell you something about MONEY. While you've been distracted by tech stocks and crypto fluctuations, something absolutely WONDERFUL is happening in the Canadian oil patch that smart investors need to pay attention to RIGHT NOW.

For YEARS, I've watched Alberta producers get absolutely CRUSHED on pricing because they had ONE customer - the United States. When you have one customer, you don't have a business, you have a HOSTAGE SITUATION. The Americans have been taking Canadian crude at ridiculous discounts of $10-20 PER BARREL below global benchmarks. That's not a business model, that's FINANCIAL SUICIDE!

But finally - FINALLY - these companies are doing what I've been screaming about for a decade: DIVERSIFICATION OF MARKETS.

The Numbers Don't Lie

The Trans Mountain Expansion pipeline (TMX) is now operational, and here's what matters: 66% of its 590,000 barrels per day capacity is already reaching Asian markets, primarily China and India. This is already driving prices up $3-5 per barrel. Do the math! That's potentially $6 BILLION in additional annual revenue.

This isn't some pipedream (pun intended). It's happening NOW. Canadian Natural Resources is ramping up to 1.53 million barrels per day in 2025 - that's a 12% increase. Western Canadian production is jumping 14% this year alone.

What Smart Money Does Next

If I were putting capital to work in this sector, I'd focus on:

1. Producers with significant TMX capacity allocations

2. Companies with existing Asian energy partnerships

3. Service firms specializing in heavy crude handling for tanker export

The potential upside is PHENOMENAL. In the best-case scenario, we're looking at Asia/Europe exports hitting 1.2 million barrels daily by 2030, with a $15/barrel premium. That's $18-24 BILLION in additional annual revenue!

Threats To Watch

Listen up - there are still SERIOUS risks here:

Trump's proposed 10% tariff on Canadian energy could erase gains unless product is fully diverted away from US markets. And let's not kid ourselves - the Energy East pipeline to Europe faces brutal regulatory hurdles and a $16 billion price tag.

But here's my take: The smart players will leverage TMX's early success into long-term contracts with Chinese state refiners, pushing Asian shipments to 80% of capacity by 2026.

Bottom Line

For decades, Alberta's oil industry has been like a phenomenal restaurant located on a dead-end street with one customer who negotiates prices daily. Now they've finally built roads to new neighborhoods, and customers are lining up to pay FULL PRICE.

This is how you turn commodities into MONEY, people. This is how you create WONDERFUL returns in a sector most investors have written off.

Remember my golden rule: "The business of business is to get out of business." Alberta's oil patch is finally figuring that out by breaking its unhealthy dependence on a single market.

That's it for this month. Now go make some money!

- Ben O'Leary

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