ispyoil

Gold or Oil: What's a Better Inflation Hedge?

remember oil is ultimately controlled by OPEC specifically Saudi Arabia while gold is controlled by the Internationaly Bank of Settlements which is lending gold out to be sold so that price of gold doesn't break the myth of paper currencies,so gold remains constrained by lending/selling by the B IS.read other blurbs on BIS
cheers ISPYOIL

Why $140/Barrel Crude is Unsustainable

The demand in the emerging countries ie Brazil,China,India,Rus... and other countries will slow in growth but still keep climbing-unless we have a worldwide recession/depression(w... is a hell of a way have all prices come down!).The supply side is also bleak as high prices have not brought on nearly enough new supplies.This is seen in flat worldwide production for the last few years. In addition most of the new supplies are heavy sour crudes while the declines ie Nigeria,North Sea are in the sweet crudes that supply proportionately more diesel and gasoline products.Refineries can be built and some are being built to handle the heavy sour crudes but are very costly and have long lead times.New oil supplies are also very costly and have long lead times.Again we are not running out of oil but are having a very tough time increasing oil production rates.The only way to have a collaspe in oil prices is to have a collaspe in the world economies.Hardly a desirable solution.Worldwide economic growth is depend on using more energy and oil is still the cheapest source for transportation fuels.
Cheers Ispyoil

Kashagan Illustrates Hurdles of New Oil Production

Kashagan is an extremely difficult project, however it is NOT a deep water project. It is located in relatively shallow water.The drilling is deep however and has very hot temperatures and has sour poisonous gases and very high pressures.The temperatures very from over a 100F in summer to well below zero in the winter.The crude is decent quality but has a high sour(sulfur) content.

The Italians as operator, mama mia!!!

China Raising Fuel Prices Unlikely to Cool Red Hot Oil Market

too technical and too politically incorrect!! great point,besides the Chineese are just buying their first moped or tiny car, not shifting to smaller cars like the US will over at least 8 years, so the demand growth in China and India comes from NEW consumers getting into the gasoline market.