You may already know about the Canadian tar sands, but I can’t emphasize enough how huge of a gold mine they are. Time magazine called it: “the greatest buried energy treasure that could satisfy the world’s demand for petroleum for the next century.”
For centuries, Native Americans used the material to seal their canoes. But the technology to extract the valuable oil has now made tar sands not only economically important but wildly profitable.

Tar sands are a combination of clay, sand, water, and bitumen, an extremely heavy form of crude oil. So instead of being pumped from the ground, the bituminous sands are mined. Next, they’re run through a separation process that uses steam and solvents to extract the oil. The process currently recovers roughly 75% of the bitumen at an average cost of $10 a barrel.
And the petroleum industry is spending billions on research to find new technology to make it even cheaper! I expect the $10-a-barrel cost to rapidly fall closer to the $3 average that OPEC spends to pump a barrel of oil.

There’s no doubt that this is already becoming a huge business. More than one million barrels of oil are produced from Canadian tar sands each day, making up 40% of Canada’s total oil production. And Canada is now the largest single supplier of oil and refined products to the United States.

So you see, these tar sands could free the rest of us from our dependence on Middle East oil. Think about that … absolute and complete energy independence! Husky Energy has over a half-million acres of rich tar sands projects that hold an estimated 40.9 billion barrels of oil. And even though oil is well off its highs, the company’s vast tar sands holdings could easily turn into a mountain of profits.

Reason #2: South China Sea’s natural gas riches
Li Ka-Shing has a very close relationship with the leaders of the Chinese communist party. And he has used his connections to enrich himself and his shareholders. For example, his energy company has a sweetheart contract with state-owned CNOOC to drill in the most productive parts of South China Sea.

An area referred to as Block 29/26 is right on top of the Liwan natural gas discovery, which covers 1,274 square miles and is one of the richest finds in recent history. This deal alone should send Husky’s profits to the moon.

Reason #3: The refinery money machine
The biggest bottleneck in the oil food chain is at the refinery level. A big part of the problem is that it has been more than 30 years since the last refinery was built in the U.S., so existing refineries are like ATM machines for their owners. Husky has a Lima, Ohio refinery that should pay off in a huge way.

Reason: It’s modifying that plant to process the heavy crude and bitumen that will dovetail with its tar sands production. If the Canadian tar sands represent the future of U.S. oil imports, this refinery is going to darn near print money.

How to Jump on Li Ka-Shing’s Money-Making Bandwagon
Scores of investors have become a whole lot richer by buying the same stocks that Warren Buffett buys for Berkshire Hathaway. That same monkey-see-monkey-do strategy can work just as well — if not better — if you follow the Asian Warren Buffett.
That’s why when I saw Husky’s potential, I told my Asia Stock Alert subscribers to buy. They sold later and banked gains as high as 27.9%!

My point is simple: You don’t have to have the same golden touch that Warren Buffett and Li Ka-Shing have. You just need to be smart enough to watch and learn from what they are doing. And what both of them have done is invest heavily in the companies that can help fill China’s insatiable appetite for energy and natural resources.

I’ve said it many times: My #1 rule for making money is to “get long in whatever China is buying.” And perhaps nothing captures that strategy better than Li Ka-Shing’s investment in Husky Energy. Husky Energy is listed on the Toronto Stock Exchange (HSE) but is available on the OTC Bulletin Board (pink sheets), too.

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.

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