Oil Hits New Record - Is $125 Next, or $100? [View article]
multitrader,
I respect your viewpoint and appreciate your well thought out and well written post, but I disagree with your implicit thesis that the rise in crude oils prices is fundamentally a trading phenomena. Although sovereign nations make it difficult to obtain reliable production and reserve data, there is increasingly little doubt that depletion from existing production fields nearly equals new production being brought on stream each year. Further, since it takes several years to begin production at a new discovery, the rate of new production which will be brought on stream over the next several years is somewhat predictable.
What we have is a Malthusian situation in which new production must exceed the combination of production depletion plus increased demand from emerging economies and others before any relief appears in the supply-demand balance.
I concede your point that the plummeting dollar and the flight to commodities is aggravating the problem, but the price of crude is on a long-term uptrend until the world becomes serious about energy conservation (incandescent light bulbs, for example) and alternative sources of energy, most likely beginning with nuclear.
I whole heartedly recommend Jim Kingsdale's excellent site on Energy Investment Strategies to anyone who wants to follow up on peak oil news. www.energyinvestmentst.../
stop future trading...useless...on... brockers making money...
Prince, get a grip.
Futures are used by farmers to lock in end-of-the-season prices for their crops (in case, they want to buy new farm equipment, for instance), by oil production companies who want to guarantee they can cover the debt they incurred drilling the wells, and by miners selling forward their production so that they can afford to develop the resources.
But, hey, let's just do away with futures. That will certainly help the global economy going forward.
If you're still looking for the fool, check the mirror, Prince.
To provide an example of Georealist's comments on better alternatives, check out COS.UN in the TSE (ADRs are COSWF). COS is currently paying 8.06% (6.85% after Uncle Sam takes his 15%), but future distributions are tied to the future price of crude plus rising production.
After reading this guy's smack, I had to check to see if he spelled his name "Ponzio" or "Ponzi".
Sort by:
Latest | Highest ratedFMC Corporation: The Future of Battery Technology [View article]
Closed today at $0.09, with a market cap of $35.4 million.
Since MSN can't seem to do a deal for Yahoo!, maybe they'll cough up a couple billion for XDSL.
Oil Hits New Record - Is $125 Next, or $100? [View article]
I respect your viewpoint and appreciate your well thought out and well written post, but I disagree with your implicit thesis that the rise in crude oils prices is fundamentally a trading phenomena.
Although sovereign nations make it difficult to obtain reliable production and reserve data, there is increasingly little doubt that depletion from existing production fields nearly equals new production being brought on stream each year. Further, since it takes several years to begin production at a new discovery, the rate of new production which will be brought on stream over the next several years is somewhat predictable.
What we have is a Malthusian situation in which new production must exceed the combination of production depletion plus increased demand from emerging economies and others before any relief appears in the supply-demand balance.
I concede your point that the plummeting dollar and the flight to commodities is aggravating the problem, but the price of crude is on a long-term uptrend until the world becomes serious about energy conservation (incandescent light bulbs, for example) and alternative sources of energy, most likely beginning with nuclear.
I whole heartedly recommend Jim Kingsdale's excellent site on Energy Investment Strategies to anyone who wants to follow up on peak oil news. www.energyinvestmentst.../
Why New Oil Price Highs? [View article]
Prince, get a grip.
Futures are used by farmers to lock in end-of-the-season prices for their crops (in case, they want to buy new farm equipment, for instance), by oil production companies who want to guarantee they can cover the debt they incurred drilling the wells, and by miners selling forward their production so that they can afford to develop the resources.
But, hey, let's just do away with futures. That will certainly help the global economy going forward.
If you're still looking for the fool, check the mirror, Prince.
Potash as Ash Can [View article]
Not an original thought, but very true.
Visa Already Twice MasterCard's Market Cap [View article]
Stocks Stink. Buy Bonds! [View article]
After reading this guy's smack, I had to check to see if he spelled his name "Ponzio" or "Ponzi".
BofA Will Lose Billions in Countrywide Deal [View article]