bruno12

Roger Wiegand: Oil Prices Create Industry Havoc

The Energy Report: Roger, the last time we spoke, early in October 2008, you were predicting oil would reach a new high before the end of the year. Obviously that hasn't been the case. What's your take on what's happened since then?

Roger Wiegand: What’s happened is that we thought oil would go to new highs, and it looked that way on the charts for the longer term technically. Other top technical advisors and institutions like Goldman Sachs had analysts’ prices that were pretty much in line with ours. They were looking at $150, $147 crude oil prices just like we were, and expecting them to go even higher. Then, of course, the credit crisis smash arrived and markets came down.

I agree that he should have seen the effect of the credit crisis in early October of 2008. Anybody can see it looking backwards. If I was going to pay for his advice, I would expect him to see it beforehand, or at least while it was happening, as was the case in early October. He was also way off on his predictions for gold and silver for the December 2008 contracts.

Do We Need an Alternative Energy 'Manhattan Project'?

We absolutely need a Manhattan type project to solve the energy crisis. I would use NASA as a better example of cooperation between government and private enterprise to solve an urgent crisis (the Russian lead in space). There should be a NASA type campus somewhere. Since Houston is the energy capital of this country it could be there. But perhaps it should be in a more neutral, academic place. MIT comes to mind. They have an energy project already.
The 128 corridor is already a research center. There is no way Congress is going to lead the way to solve the energy crisis no matter which party is control If they were in charge of the space program step by step we would still not be on the moon. They just need to fund a NASA type program and let the scientists and industry go to work.

Test-Driving Some Exchange-Traded Oil Vehicles

Remembering what happened to DCR (it went to zero) when oil went over 111.00 for 3 consecutive days, I would stay away from these vehicles. The same thing could happen to either one of them if oil makes an extreme move to the upside or downside.