Iraq stops exportation of oil indefinitely… prices top $100 a barrel!

Imagine waking up one morning to this news headline:

“Iraq stops exportation of oil indefinitely… prices top $100 a barrel!”

Could it happen?

Yes, it could. In fact, just two days ago, on August 30, 2004, officials at Iraq’s state-run oil company told the Associated Press that oil exports had been halted and weren’t likely to resume for a week due a spate of attacks on the country’s petroleum infrastructure. Thank goodness it only cut shipments for a week.

But it’s not just Iraq causing prices to rise at America’s gas pumps. Fears of terrorist attacks in Saudi Arabia, the battle of Russian oil giant Yukos to fend off bankruptcy, and political unrest in Venezuela all point to higher oil and gas prices ahead for consumers.

This past August 20, 2004, Esa Ramasamy, editorial manager for oil in Asia at energy market analyst Platts, said, “$50 a barrel is, I would say a foregone conclusion… Now the market is thinking $60…”

And oil prices are already up 57% in the past 12 months alone. How many more price increases can we take before the energy crisis really hits?

Unfortunately, hundreds of millions of people around the world are dependent on gas to run their cars and trucks every day. Despite investments in all kinds of technology, modern day scientists have yet to discover or develop a reliable alternative to gas as the fuel for automobiles.

Yes, we’ve tried batteries and solar technology. But they can’t make our cars go fast enough or far enough. We’re testing propane and natural gas vehicles, but we have years to go before they’re perfected.

So for today, tomorrow, and likely the next 10 years, North America will continue to be dependent on unreliable foreign countries to supply its oil. Very scary… especially when you discover we’re often buying our oil from terrorist infested foreign countries.

An energy crisis is a much greater possibility than most consumers expect. If the world turns its oil taps off to America, what would happen? We don’t even want to think about that right now.

What we do want to think about is new sources of oil. And there’s only one company we’ve found that’s making progress in discovering oil on civilized ground.

Ironically, this company was actually founded back in 1880. And it’s a “sleeper” of company if we ever saw one, especially by Warren Buffett’s standards.

— Over the past five years, the company’s stock has risen steadily by a simple average of 36% per year. If oil prices take off, expect to see that 36% annual stock price appreciation multiply two- or threefold… that’s 72% or even 108% growth a year!

— The stock is such a great investment that the company just spent $275 million buying its own shares.

— One of the largest public corporations in America now owns 69% of this oil explorer, producer, and marketer.

— In 2003, the company’s revenue topped $13.7 billion. After- tax net income was $1.3 billion… up 37% from the previous year!

— The company’s revenue was up 22% in the last quarter alone to $4.2 billion!

With 6,000 employees, its stock selling at under 14 times trailing 12-month earnings, and only 15 brokers covering this company, this stock is the sleeping giant in the oil sector just waiting for investors to wake it.

Now here’s another reason we like this stock:

If you’ve been following Michael Lombardi’s commentaries on the declining U.S. dollar, you know Michael’s very bearish on the U.S. dollar. He expects other currencies to rise steadily against the U.S. dollar. And this is where American investors in this stock can lock in even more profits.

You can buy this stock on the American Stock Exchange, but you can also buy it on the Toronto Stock Exchange! If Michael is right and the U.S. dollar continues on its path to devaluation, it’s a double whammy of profits for you because you’ll be posting foreign currency gains too!

With the help of Michael Lombardi, we’ve just put the final touches on our new special report “The Stock to Buy Before the Energy Crisis Hits.” The report is only 24 pages long, yet it includes our research analysis on the company, why we think it is the best buy in the oil sector, names of major institutional investors in the company, its financials, and more. Of course, we tell you all the reasons why we love this oil stock.

Because you are a valued Lombardi customer, we’ve discounted the price of this report by $100. You can get your personal copy of “The Stock to Buy Before the Energy Crisis Hits” at the special Lombardi customer rate of only $95. You’ll see the confidential report before we start marketing it to general retail investors.