The Monster Oil Hunt Nobody Is Talking About

One story the mainstream has missed is the recent rise in crude oil prices.

As I type this, crude-oil futures contracts in New York are selling for $99 a barrel.

These are levels we haven’t seen since mid-June.

I’ve talked about crude oil before…and why I think it’s a great long-term investment.

Oil Prices Will Rise…No Matter What Happens Next

Remember, oil prices will either rise as the global economy recovers. Or they will rise because the central banks will try to print their way back to prosperity.

The more money they print up the more investors will worry about inflation and turn to oil for protection.

A simple way to take advantage of this trend is to buy an investment that tracks the price of oil. There are a number of ETFs that allow you to do this. The most popular is the United States Oil Fund LP ETF (NYSE:USO).

But this isn’t where you’ll find the really big gains. The really big gains are in the oil exploration sector.

Costs and risks are higher for these companies. But the potential rewards for investors can also be huge.

Introducing the “Oil Oracle”

One person who knows this well is a man I call the “Oil Oracle.”

His experience in the oil exploration business is second to none.

He is professor of petroleum geochemistry and petroleum systems in several universities in Brazil. And he has published more than 200 papers about geology and geochemistry linked to petroleum exploration all around the world.

The “Oil Oracle” used to be in charge of finding oil for Brazilian oil major Petrobras.

At Petrobras he developed highly specialized studies about petroleum systems of Brazil, Africa and Latin America.

But he recently set up his oil exploration company, taking over 50 of Petrobras’s top oil experts with him.

I met with the “Oil Oracle” in his office in Rio de Janeiro. To say he’s colorful is an understatement.

When I met him the “Oil Oracle” was immaculately turned out. He was wearing a razor-sharp gray business suit, a pink tie with a gold tie pin.

The only detail out of place were his shoes – a pair of black rubber Crocs…

The “Oil Oracle” doesn’t allow anyone to wear shoes in his office. Staff bring in slippers to change into when they get to work. The “Oil Oracle” believes, as geologists, they need to feel the Earth underneath their feet!

A Knack for Finding Oil

It may sound crazy. But the “Oil Oracle” has a knack of finding oil that has baffled many of the pros in the field.

In July 2009 his new company had 277 million barrels of oil equivalent (BOE). By the time the company went pubic on the Brazilian stock exchange that number had risen to 2.07 billion BOE.

That’s a truly staggering increase…

Here’s the note I dashed off to my publisher after the meeting.

Yesterday, I meet with [the “Oil Oracle”], a former Petrobras chief geologist… He’s a big deal here… He now runs one of Brazil’s most successful oil and gas exploration and production companies … His company is now worth $6 billion… And investors who bought in when it went public on the Bovespa have made 80% on their investment so far…

Of course, buying a stock listed in Brazil can be tricky. But the “Oil Oracle” recently listed his company in Toronto making it easy for North Americans to invest.

The “Oil Oracle” is now betting big that the next monster petroleum system will be found of the coast of Africa – in the exact spot where the continent drifted apart from Brazil millions of years ago.

Nobody is talking about this…yet. But the “Oil Oracle” estimates there could be more than 5 billion BOE in the offshore basins there. In fact, he believes the fields he is exploring off the coast of Africa are analogous to the recent “mammoth” finds off the coast of Brazil.

If he is right, early investors stand to make big gains.

You can find all the details of this company and the “Oil Oracle’s” latest oil hunt here.