Bombshell Report Reveals America's Energy Plans – Here's How to Profit

by Andrew Zatlin February 17, 2023 2:00 pm ET

Report of Exxon Mobil's (XOM) massive $56 billion in profits has been in the news recently.

But do you know what hasn't made headlines? A bombshell report that could have major implications on America's energy sector.

Trust me: As an investor, you need to see this.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

Bombshell Report Reveals America's Energy Plans – Here's How to Profit

Seymour "Cy" Hersh is a renowned investigative journalist.

In 1969, he exposed a coverup of a massacre that occurred during the Vietnam War and captured a Pulitzer Prize for his reporting. During the 1970s, he covered the Watergate scandal for the New York Times. And in 2004, he reported on the U.S. military's role in torture and abuse of prisoners in Iraq.

But it's his latest report that caught my attention – both as an investor and a concerned citizen. Let me get you up to speed...

A Bombshell Report

Last week, Hersh released a bombshell report that revealed that the U.S. was responsible for blowing up Nord Stream 2, a pipeline built to transport natural gas from Russia to Germany through the Baltic Sea.

This story went largely unnoticed. But all eyes should be on it. Why?

Because the destruction will have major implications on U.S. energy policy and a handful of American energy companies.

America Discovers a Problem

The Nord Stream 2 blew up back in September 2022 in international waters. But Hersh revealed that the U.S. was responsible for its destruction.

Would America have really done this? Two words: Hell yes.

You see, this pipeline was one of the dumbest things Europe could have considered. When President Donald Trump was in office, he traveled overseas and discovered that the Nord Stream 2 presented a major security problem. Dependence on Russian gas had risen, and that gave Russia a lot of economic and political leverage.

From time to time, Russia would play games like "turn off the gas," if only to remind Europeans that they needed to play nice.

But this security problem extended even further...

We Had a Deal!

While dependent on Russia, European countries were also failing to maintain their own military security.

In 2018, website DER SPIEGEL announced that Germany had no functioning Air Force – a commitment it previously made to the North Atlantic Treaty Organization ("NATO"), by the way.

And it wasn't just Germany. NATO countries were obligated to spend 2% of their gross domestic product ("GDP") on military defense. Yet only four of them were actually doing so.

Upon his visit, Trump learned that:

Europe wasn't doing anything to protect itself, even though Americans were spending money to protect its citizens.
And the countries were about to double down and expose themselves to Russia even more than they originally had! This made no sense from a security standpoint.

Corruption Runs Rampant

To help, Trump offered to supply Europe with U.S. natural gas. But sure enough, he was laughed at.

But the rebuffing wasn't due to national security reasons at all. It was all about the euros, baby.

Every major national leader in Europe was involved with the launch of the Nord Stream. And Russian corruption was strongly suggested.

So, we had a bad idea from a security standpoint and a better economic solution offered by the U.S. Yet the Europeans were hellbent on sticking with the pipeline.

Let's shift gears for a moment and revisit the pipeline's destruction...

The Motives Behind the Destruction

Remember that last summer, Russia shut off the gas for a weekslong maintenance drill. And as a result, Germany panicked.

The country faced a real energy crisis. And the U.S. quickly came to the rescue.

It emptied its own reserves to flood the market with supply, enabling Germany to ramp up its reserves and make it through the winter. At the same time, the U.S. removed Russia's power in this scenario.

But then the pipeline blew up, and that forced Germany to rely on U.S. natural gas exports. And look what happened next...

This chart shows U.S. liquefied natural gas ("LNG") shipments to the European Union ("EU"), the United Kingdom, and Turkey. Notice how activity surged in 2022. In fact, U.S. shipments overtook Russia's shipments of gas to Europe:

A Clear Message is Sent

This unfolding of events painted a clear picture. If the U.S. is willing to take out a major pipeline in the face of its own allies to force another ally to buy its own natural gas, you can bet it would do something similar to a country like Iran, for example.

In other words, the U.S. sees energy control as a weapon. And it's not afraid to arm up and deploy these weapons when it's in its own interests.

But let's look at how this whole situation can benefit investors like us...

Three Ways to Play

As an investor, look at companies that are going to benefit from America's energy efforts.

For example, focus on Exxon Mobil (NYSE: XOM) or Cheniere Energy (NYSE: LNG), two of the largest LNG suppliers.

Additionally, consider Kinder Morgan (NYSE: KMI), who is going to build the infrastructure needed to load, ship, and unload all this gas and even explore offshore drilling opportunities.

All three options can potentially give you a profitable stake in the global war on energy. But if you're a "Pro" subscriber, I'll share the details on an energy company I like even more than the ones mentioned above.

We're in it to win it. Zatlin out.