Discover the biggest lie of the last 30 years. . .

. . .revealed by the investment newsletter rated #1 for the last five years by the independent Hulbert Financial Digest.

Dear Reader,

Those Saudi Arabians, you've gotta love 'em.  First, fifteen out of nineteen hijackers on 9/11 were Saudis, but Saudi Arabia had NOTHING to do with it, or so we're told.  They love us!

Now Saudi Arabia is about to drop another bombshell on us, and this one will make 9/11 look like small potatoes.

I never thought I'd say anything could make 9/11 look like small potatoes.  But this does, at least when it comes to the economy.

9/11 shut the markets down for a few days.  When the next crisis hits, you'll wish the markets would shut down so you didn't have to watch the carnage.

What Bush learned behind closed doors

If some well-informed experts are right, Saudi Arabia's oil reserves are a fraction of what they've been telling us.

Why does it matter?  Because everyone has believed for decades that Saudi Arabia's oil supply is virtually unlimited.  That's what the Saudis have said over and over again for more than 30 years.

If an oil shortage threatens to cause a recession or a market crash, we can count on the Saudis to come through.  So people think.

But in a private briefing, one of America's top oil experts told President George Bush exactly what I'm telling you.  In fact, this same man was a consultant to the secretive task force that drew up Vice President Cheney's energy plan in 2001.

In other words, the guy is a heavy hitter who knows the energy business.

He warned Bush that the Saudis don't have anything near the oil reserves they claim.   They already pump less oil than most "experts" think, and here's the real kicker. . .

Saudi oil production is about to drop sharply.
And it will keep going down for good.

Other experts have analyzed the numbers and came to the same conclusions.  If the charges are true - and I believe they are - we could be facing. . .

Oil at $150 per barrel and gasoline at $8 a gallon

The oil is running out.  It's as simple as that.

But that's not what you hear from so-called experts.   If you ask government officials, our intelligence agencies, and even powerful Wall Street financiers, they tell you the opposite.

They say the Saudis could quickly double their oil production from the current level if they wanted to.  And given a few years, they think the Saudis could produce four times as much oil as they now do.

This is like the Iraqi WMDs all over again

The intelligence agencies and the conventional "experts" are dead wrong.  The oil isn't there.

Why should you pay attention to what I think?  Let me give you a good reason, and then you decide.  My name is Kevin Kerr, and I'm the editor of Outstanding Investments, a monthly newsletter plus weekly email updates.

My publication had the best track record of any investment newsletter in the country during the last five years.  You can check it out at CBS Newswatch and its independent rating service, the Hulbert Financial Digest.

Readers who followed Outstanding Investments were up 64.2 percent in 2005 and 62 percent the year before that.  What's more, we did it all with stocks, not options, and I recommended very few trades.  So it's worth your time to spend a few minutes and let me tell you. . .

Why It will be a year of crisis

The oil and gas shortages we've seen lately are nothing compared to what's on the way.

When the truth comes out, it will send shock waves through the world economy.  Everyone will find out too late - when gasoline soars to five or six dollars per gallon.  I'm writing this to give you a heads-up.

The next few pages show you how to protect yourself and get rich off energy sources and technologies the world will scramble to buy at any price.

Don't be surprised if certain commodities and resource stocks soar three, five or even ten times over.

Here are a few things you'll discover in the next few minutes. . .

The most important fact - not an opinion, but a fact - that should guide your whole investment strategy.

A "minor" sector of the energy market is set to grow 17 times over. I give you the best ways to play it.

A "little" oil company owns reserves the size of Alaska's Prudhoe Bay.  It's not even on your radar screen, yet the stock is already up a thousand percent, and readers who listened to me captured about half that gain - 496 percent.  Even bigger gains are on the way.

The coal revolution is here.  It's always been cheap and plentiful.  Now it's going to be clean, and soon it will even be liquid.  It's also going to cause a massive shift in world power. Two American companies will profit big time.

What car will you drive in 2015?  Keep reading to discover a "secret play" on the winning car technology of the future.  Hint:  It may run on coal.  MORE:  Why the Prius will be a loser.  And another surprise:  The car-makers are NOT the ones who will reap big profits from the super-car.

Discover the fastest -growing energy source in the world.  Also the cleanest and safest.  America may miss out, but you can still profit.

A natural gas company offers more income than CDs do.  It will probably give you a 100 percent capital gain to boot.  But you have to know about a hidden pitfall.  Keep reading. . .

Three wild cards could send oil over $100 in one day.  One of these events may have happened by the time you read this.

I urge you to keep reading and at least consider the steps I recommend to protect yourself.  Because you need to ask. . .

Will Americans have to read by candlelight and bike to work?

We will if the country dodges crucial energy choices - and time is running out.  It may be too late to avoid a deep recession. It's definitely too late to avoid $100 oil, thanks to. . .

Saudi Secrets and Funny Math
The cupboard is bare and nobody knows it

Americans used to run Aramco, the huge oil company that manages the Saudi fields.  But in 1979 the Saudis booted us out and took over.

And then a funny thing happened. . .

The Saudis started keeping everything a secret.

No one knows for sure how much oil they've got in the ground, or how much they produce each year, or how much they could produce if they wanted to push it to the max.

It's all secret.  Experts try to figure out how much oil the Saudis sell by monitoring tanker traffic in and out of the world's ports.  That's how little we know for sure.

But wait, it gets worse!

After the Saudis took over, an even funnier thing happened. . .

Their figures for proven reserves kept going up and up and up - even though they didn't find any major new oil fields!

In 1979, the Saudis adjusted proven reserves upward by 50 billion barrels.  Then eight years after that, their proven reserves magically grew by another 100 billion barrels.

Their estimated reserves increased by 150% in nine years - to a total of 260 billion barrels.  And they didn't find a single major new oil field!

And here's the funniest thing of all. . .

For the last 17 years, they've claimed they own 260 billion barrels of proven oil in the ground.  The figure never goes down, even though they pumped out 46 billion barrels during that period.

Let me see. . .260 minus 46 equals 260.  Saudi math!

Based on these bogus figures, the Saudis claim they can produce as much oil as the world wants for the next fifty years.  As recently as 2004 they claimed their reserve estimates are actually conservative.

That's why most of the world's governments and intelligence services believe the Saudis could pump 20 million barrels of oil a day if they wanted to.  Trouble is, we've got no proof except their say-so.

If it were true, we wouldn't have a thing to worry about.  But it's not.

It's horse hockey

Before Aramco's American owners were shown the door in 1979 they told Congress that Saudi Arabia's had proven reserves of 110 billion barrels.  There've been no major new discoveries, so 110 billion barrels was probably about right.  And since then, about half of that has been used up.

So why do the Saudis insist everything is just fine and they have 260 billion barrels of reserves?

One reason is they wanted to discourage non-OPEC nations from looking for more oil or switching to alternatives.

It was a devious plan, and it worked perfectly.

But that wasn't the only reason the Saudis lied about their reserves.  They did it because everyone does it!  Everyone in OPEC, that is.

The Biggest Lie of All: OPEC's Imaginary Oil

In the 1980s, OPEC's claim of total reserves magically leaped from 353 to 643 billion barrels without a single major discovery.  Industry experts call it the quota war.

You see, OPEC had to limit how much oil each member could sell, because prices were too low.    The quotas were based on. . .each member's oil reserves!

That's right:  The amount of oil OPEC would let a member pump depended on how much that member had in the ground.  So it paid OPEC members to claim the biggest reserves they could.  And that's what they did.

The Saudis alone jacked up their estimate by about 100 billion.  Kuwait added 50 percent to its reserves in one year, 1985.  Venezuela doubled its reserves in 1987.  Iraq and Iran doubled their estimates, too.

What's more, OPEC members did like the Saudis and kept their reserve estimates the same year after year, as if no oil was being pumped out and sold.

Everyone claimed to have a bottomless well.

Now if you're like me you prefer to base your financial decisions on the real world, not on a fantasy.

Let's look at how much oil there really is. . .

In the 1970s, when Western managers were still in charge, they believed for a time that Saudi output could reach 20 million barrels a day.  But by the time the Americans lost control in 1979, they figured the peak would be 12 million.

They also predicted that peak production would last only 15 or 20 years. 

1979 plus 20 is 1999.  We're past the peak, if these men were right.  But we already know they were too optimistic.

The truth is that Saudi production never got to 12 million.  "In all probability, output peaked in 1981 at an unsustainable level of about 10.5 million barrels per day," according to Matthew R. Simmons, a leading oil industry authority.

And yet the lies go on. . .

In 2004, Saudi officials claimed they boosted production to 9.5 million barrels and maintained that level for five months.

It's almost sure they were lying.  The International Energy Agency is the group that keeps an eye on these things for the developed, oil-importing countries.  The IEA could find no sign the Saudis were selling more oil.

As far as anyone can tell, they only pump around five million barrels a day and that's all they've pumped for years.

It's déjà vu all over again

In spite of being lied to at least once, the IEA, the U.S. Department of Energy and other forecasters believe the Saudi claims.  ALL their projections of our energy future ALWAYS assume the Saudis could produce 15 or 20 million barrels a day.

The lies have worked.  Not only do Western politicians believe them but so do many oil industry experts and investors with huge amounts of money at stake.  They've been had.

You'll get the full story in a FREE Special Investment Report called Crude Awakening: How to Survive the Total Global Energy Crunch.  It's just one of four free special reports with my ten best recommendations.

The three specific picks in Crude Awakening are up 496 percent, 140 percent and 430 percent as I write these words.  I'm telling readers to hang on to all three of them because the profits have just begun.

We went through three recessions from 1973-1983. Care for a repeat?

Our whole economy is at risk.  Your investments are at risk.  Your retirement plans are at risk.

America has been so prosperous the last couple of decades, a lot of people forget what the energy crisis of the Seventies was like.  Let me remind you:  The price of a barrel of oil shot up 400 percent.  Long lines formed at gas stations practically overnight.

Folks had to pay four times as much for a gallon of gas, and there came a week when one out of every five gas stations in the United States had no gas to sell at any price.

The U.S. had three major recessions within ten years after the first oil crisis in 1973.  And those recessions were deep, with double-digit unemployment, double-digit interest rates and double-digit inflation.

Think 10 to 12 percent unemployment, or worse.

Think 15 to 18 percent mortgage rates.

Got the picture?  That was the Seventies.  Not fun.  My take is that a similar crisis will rock the nation before we solve our problem with clean coal, liquefied natural gas, oil from tar sands, high-mileage cars and safe nuclear plants.  More than likely, the politicians will quarrel for years before they do what has to be done.

My picks are already way up even though our energy problems so far are nothing compared to what's on the way.  At the risk of looking kind of cynical, the worse the crisis gets, the higher my recommended stocks will climb.

So I urge you to send for the four free Special Investment Reports including Crude Awakening:  How to Survive the Total Global Energy Crunch.  Then buy the recommended stocks and hang on to them, because. . .

• Most of the rest of your investments will tank. . .

• You may lose your job. . .

• Gasoline could race past $8 a gallon. . .

• Houses, including yours, will lose value. It could be a paradise for bargain hunters, but not if you're broke.

• Groceries and everything else you buy may cost a fortune. . .

• What's more, you might need to buy a gun to protect yourself.

The ten energy investments you'll get in Crude Awakening and three other free Special Investment Reports are the best insurance I've been able to come up with.  I can't guarantee you'll make money.  No responsible investment analyst will do that.  But my newsletter does have the best documented track in the United States for the past five years.

Take a look at my best-performing recommendation. . .

More Oil in North America Than in Saudi Arabia
A "little" oil company with reserves bigger than Alaska's Prudhoe Bay!

If I could tell you just one thing, this would be it:  Oil at $50 a barrel makes a whole bunch of alternatives look cheap.

That key fact should guide your whole investment strategy.

The energy sources I recommend in your free reports are able to compete with oil as low as $30.  And I don't expect to see oil that cheap ever again.

If it happens, run out and buy every oil stock you can because $30 oil will just be a blip on the way to $100.  Don't wait for oil prices to return to "normal."  Instead, stake your claim to. . .

The world's largest oil reserves

The oil sands in Alberta, Canada contain the biggest known reserve of oil in the world.  Estimates range from 1.7 to 2 trillion barrels of oil trapped in a mixture of sand, water and clay.

This has been known for a long time.  But the oil is in the form of a heavy, tar-like substance called bitumen.  It costs about $15 to $20 per barrel to extract, compared to a production cost of $5 for Saudi Arabian oil.

With light, sweet crude around $20 for two decades and even dipping to $10 in 1999, no one was interested in oil sands.  But now oil is around $60, and guess what. . .

Everyone's really interested in oil sands

Most of the buzz focuses on Alberta's Athabasca region, with an estimated 175 billion barrels of oil.  Athabasca is probably the biggest oil field in the world, if the Saudis are lying about their reserves.

The Athabasaca oil sands are nicely profitable with oil at $30 a barrel, meaning a lot of big companies are rushing to cash in.  But the problem with the big players is that the results will be hard to detect in their income statements.

For giants like Shell and Chevron, conventional oil and gas will dwarf whatever they make off oil sands.  I've got a better idea. . . 

A smaller player with a big upside

My choice is already up 496% since I disclosed it to paid subscribers in the pages of Outstanding Investments, my monthly newsletter plus email updates.

You're not too late; the fun has just begun.  You'll discover the company in the free Special Investment Report called Crude Awakening:  How to Survive the Total Global Energy Crunch.

They've been right from the start

My pick has been a key player in oil sands extraction since the pioneering days of 1967.

They own the leases on an estimated 11 to 12 billion barrels of bitumen - a find as big as Prudhoe Bay.  A very, very big oil field for such a "little" oil company.

When I say "little" I just mean in comparison to Exxon or BP.  I want you to know this isn't some start-up where you gamble on whether they'll bring in the wells or solve the technical problems.  They already produce almost 100 million barrels of oil a year, with plans to double within six years.

I'd love to see you get started with this exciting opportunity.  Send for your free copy of Crude Awakening:  How to Survive the Total Global Energy Crunch.  And here's a recommendation you'll find in another one of your free reports, Tailpipe Riches: The Race to Build the Car of the Future. . .