Greetings from London.

I think you will enjoy the report we have lined up for you tomorrow as it takes a look at future trends and investment opportunities in a high growth energy sector that smart investors are starting to take notice of.

But before that I wanted to take a moment to let you know what subscribers to OilPrice.com Premium will be receiving tomorrow:

From Inside Investor tomorrow:

This week’s newsletter is a fascinating one, where intelligence reports meet head-on with the trade it is one of the few out there with the correct perspective of the entire unfolding situation.

And the point of it is one that everyone else in the media is missing now – the Cyprus bank bailout proposal, the (I think) temporary rejection of the EU plan, the last minute plea from Cyprus to Russia – all of this – is not about money laundering or EU ability to retain this weak sister state. It is ALL ABOUT PETRODOLLARS.

That’s because the Levant basin and the fields within it represent a sea change of likely natural gas supply to Europe, no longer consisting solely of Russian gas. The potential for Leviathan, Tamar and the other producing fields in the Levant basin, owned by Israel and Cyprus, could easily represent 40% of all of Europe’s necessary nat gas demand – yes, 40 – and that’s not counting the oil that likely lies beneath Leviathan, also blowing out projected reserve estimates.

These have been amazing new finds, but it is only when the geopolitics like this Cyprus bank bailout come to the fore that the seismic shifts of petrodollars and power become apparent. One thought I had is that the EU was far more willing to anger the Russians and their corrupt depositors in light of the independent gas supply soon to break Gazprom’s hegemony in Europe. With Russia likely to deliver heavy capital to the Israelis just for first dibs at LNG production in Tamar and Turkey quietly planning a joint venture pipeline with the Israelis, there is clearly rhetoric that is not matching with events. Stay tuned.

As a trader, it really helps to know all this, particularly because one American oil company has the inside track to development of this massive resource in the Eastern Mediterranean:

Turkmenistan:

Turkmenistan is hoping to lure more foreign companies in to explore and develop oil and gas resources, and to this end earlier this month Turkmen officials spent two days in Dubai selling their potential.

What is that potential? The fourth largest natural gas reserves in the world (estimated at around 265 trillion cubic feet) and proven oil reserves of around 600 million barrels. The country has 153 gas fields (142 onshore and 11 offshore), 82 gas condensate fields, and 38 oil fields.

Most of these proven reserves are in the South Caspian Basin and the western Garashyzlyk onshore area. But there is also unexplored potential in Turkmenistan’s area of the Caspian Sea, which the government believes contains over 80 billion barrels of oil. They need to boost exploration and production, which peaked at 213,000 bbl/d in 2004 and then declined slightly to about 202,000 bbl/d in 2010. Half of this production feeds the domestic market.

Kind regards,

James Stafford
Editor, Oilprice.com