JCC

Will Oil Continue Its Rise?

The price of natural gas has been falling. The efforts that we went through trying to extract shale oil, were not good enough for oil, but turned out to be great for gas. You see, when you fracture the shale, embedded gas flows. Unfortunately this is not true for oil. To extract the oil from the shale you need fracture it and then heat it.

So, while there is is plenty of oil in shale, it is expensive and very difficult to extract. With this problem oil has continued to deplete at about the same rate as in recent years. As the world economy recovers, the demand for oil is starting to increase.

Betting that oil will stay below $75 next year is betting against recovery. Prices will rocketship, when the recovery starts in earnest.

Surprising Upturn for the Energy Sector

A month ago I surmised that we would start to see positive movement in equiities in the following sequence:
1. Financials - I purchased and the results so far have been great. They are going up.
2. Resources - The logic is that as recovery takes place more resources will be required. This includes energy.
3. Industrials - I expect these to take a lot longer because of all of the economic damage.

Well financials are rocket-shipping, and they have a ways to go. With all of the worldwide reaction to the monetary crisis, carefully chosen financials are a great investment.

Resources have just started to move. Volatility will be here for a while, and then chosen commodities will rocket-ship.

We are witnessing natural reactions to the economic cycle, and it is a great time to be an investor.

Oil and Stocks Have Bottomed, But Their Paths Forward Vary

A very intelligent article, that will probably be hammered for the comments in the last half. The conservative crowd will have a fit.

For the investment crowd, there is a lot think about and profit from over the next two years. Banks / financials, energy (oil, gas, batteries, etc.), and Asia. A lot of economic damage has been done, which will take some time to recover.

We have golden opportunities.

60 Minutes on Oil: Did Anyone Verify Anything?

Looking at your chart it shows peak production of ~75,000,000 barrels per day. This is ~10,000,000 lower than published consumption of 85,000,000 BPD.

Where is the difference? Either the supply or the demand is incorrect. Where did the extra ~10,000,000 BPD come from?