The Most Energy-Rich Nations and 6 Top Stocks to Watch For

Todays top stocks to buyIn part 2 of our two-part series, the top three energy-rich nations are finally revealed, along with six top stocks investors should watch for…

In the second part of our two-part series on the most energy rich nations on earth, we reveal the 3 powerhouses that topped the charts in 2013.

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The big three are in the same order as last year, but Russia is looking to make a move — especially if new oil and gas discoveries are made in the Arctic Circle.

But don’t count the other two countries out however, as they have some big exploration plans of their own…

3) China – 3,355.97 QBTU
109.3 Tcf gas
11.3 Bboe
114,500.0 MT coal

China holds down the third spot with its impressive coal reserves.

Recently, a massive 89.2 billion tonne coal reserve was unearthed in the Xinjiang Uyghur region between Mongolia and Kazakhstan.  This coal-rich area currently accounts for 40% of China’s total reserves.

By 2015, the region is expected to triple its coal production.  By 2020, production is projected to reach over 750 million tonnes per year.

One reason this latest find is so impressive is its geology. Much of Xinjiang’s large coal seams are close enough to the surface to be mined more safely and cheaply than deep underground mines.

But Xinjiang is not only a coal mine.  It also hosts China’s largest petroleum and natural gas reserves.

According to the Regional Government of Xinjiang Uygur, oil reserves are estimated at 20.9 billion tons or 30% of the national total. Natural gas reserves stand at 11 Tcm or 34% of the national total.

State-owned China National Petroleum Corporation (CNPC) will be spearheading the bulk of Xinjiang’s development for the next decade, but one US company will also be benefiting from the region’s growth.

With coal still the dominant energy source for the Chinese, right in the heart of the action is one of our top stocks to buy, Peabody Energy Corp. (NYSE:BTU).

Peabody will be partnering with local partner Yankuang Group Co. to develop a coal mine that will produce up to 50.0 MT of coal at Xinjiang.

2) Russia – 6,043.18 QBTU
1,162.5 Tcf gas
87.2 Bboe
157,000.0 MT coal

Not too many people realize it, but in addition to massive oil & gas reserves Russia is also a major coal player.

In fact, it has the second most coal reserves in the world behind the US. And according to consultants SRK, the nation’s main energy source is natural gas (43%) followed by coal (23%).

Spread across its expansive land mass are 22 prolific coal basins and 118 individual deposits.

Russia counts China as one of its biggest customers and this year they’re expected to export 20.0 MT to them compared with 19.3 MT last year.

New shipping ports are currently being built, with plans for terminal ships to Japan, South Korea, China, US, and Australia in the near to mid-term.

Then there is the arctic frontier that’s expected to turn the entire petroleum industry on its head.

Exploration in the Russian Arctic will be underway shortly, with state-owned Rosneft and Gazprom OAO (MCX:GAZP) being awarded drilling licenses. Access to the region may be granted as soon as the end of 2013.

The Russians aren’t being exclusive either.  They’ve been quick to encourage foreign companies to come aboard to help explore the Russian Arctic.

Rosneft has signed exploration deals with multinationals including ExxonMobil (NYSE:XOM), Statoil (NYSE:STO) and Eni (NYSE:ENI).

With an estimated 25 to 30 billion tons of recoverable oil reserves, you can bet that these top stocks can’t wait to get their hands on this potential cash cow.

1) USA – 7,096.22 QBTU
300.0 Tcf gas
35.0 Bboe
237,300.0 MT coal

And the number one most energy rich nation is the good ‘ol USA.

While coal is still the dominant source in America’s energy pie, our nation’s colossal oil and gas reserves also help keep us at the top of the global energy pyramid.

Last week, the Energy Information Administration (EIA) released its report on US Crude Oil and Natural Gas Proved Reserves.

In their report, the EIA states that US reserves include 29.0 billion barrels of crude oil and lease condensate and 348.8 Tcf of wet natural gas.

While their statistics differ slightly from BP’s data, there’s no debating that horizontal drilling and hydraulic fracturing in the nation’s shale formations continue to drive reserves upward.

One challenge facing the US energy sector is in natural gas side.

Currently the industry is drowning in supply, which is driving down prices. This, however, may soon see some relief as the push for new LNG export terminals is gaining momentum.

In light of this, one of the top stocks to consider is construction company KBR, Inc. (NYSE:KBR). They’ve singlehandedly built over 40% of LNG production facilities around the world.

Once applicants are ready to pull the trigger on construction of their export terminals, KBR will likely submit (and win) some key proposals.

Yours in profits,
Todays top stocks to buy
John Holt
for Top Stock Millionaire
Follow me on Google+, Facebook, and Twitter

 View part-1 of this series here

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