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There is incredible capital gain potential for investors in oil and gas stocks with commodity prices at these levels. The World is using a lot more oil that it is finding, which provides a strong floor for prices. We're not Gloom and Doomers - advances in oil and gas recovery allows us to tap the reserves in the world for much longer than originally expected - but technology in oil and gas allow producers to make excellent profits with oil above US$25 and gas above $4.

One person can't follow the hundreds of oil and gas companies in the market. So EnergyEditor.ca follows the newsletter writers who follow oil and gas companies. We want to find companies that have interesting stories (like an oilfield in Albania that a junior company acquired for almost nothing, and it has 130 million barrels in reserves!) or proven management teams, and are junior companies - because then any new discoveries will be significant, and investors will get more leverage.

These newsletter writers are often from either the finance or petroleum industries, have good connections, and make their own discoveries - of fast growing companies. So we listen to them, and get permission to republish their editorials here. It's great exposure for them, and gives our subscribers a chance to find out about interesting companies EARLY.

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Right now, production capacity is bumping its head against a burgeoning worldwide demand. Consider:

China and America, the two largest consumers of energy were both net exporters a years back and heavily rely on their imports for foreign (and sometimes politically unstable) countries. The trend continues and indicates it will be here for years to come until a source of reliable renewable energy can be found -- and then made readily available to the masses. If you aren't familiar with the argument for an oil shortage -- here are few statistics that may make you think.

Total world oil production reached 68 million barrels per day in 2003, according to a count by the Oil and Gas Journal. That's not much above the 66.7 million barrels per day in 2001. Oil reserves estimated at 1.226 trillion are up only a bit from 1.213 trillion a year earlier

Production has peaked for more than 50 oil-producing nations, including the US (1970) and Britain (1999). China, second to the US in the consumption of oil, was a net exporter of oil until 5 years ago
The Department of Energy predicts world demand will reach 119 million bpd in 2025, with huge increases in China, India and other developing nations
In 2002, the world used four times as much oil as was newly found

The rate of discovery worldwide oil reserves, after declining for 40 years, has slowed to a trickle. In 2000 there was 16 large discoveries of oil, 8 in 2001, 3 in 2002, and none last year, notes James Meyer, director of the Oil Depletion Analysis Centre in London

All the giant fields, such as those in the Middle East, have already been discovered, some experts say. These giants are relatively easy to find. The last couple of major oil field finds were Cantarell, off Mexico's shore, discovered in 1976 , and the Caspian field in Kazakhstan.