Consider the following…

Oil is one of the most important natural resources known to mankind. For most societies in the world, oil is the principal natural resource that fuels their economies. Then why, in this great age of communication and technology, do we need to be concerned about a natural resource like oil? Simple. Nearly 98% of everything you have or do is in some way related to crude oil. Heat for your home, gas for your car, 2 liter plastic bottles for pop, and petroleum jelly are just a few examples of products created from crude oil. The United States has the greatest standard of living in the world, as well as the largest economy. Why? Because we have always tried to maintain control over the supply, as well as price, of oil. Over the last 10 years, the U.S. economy has undergone the largest economic expansion in history and cheap oil has fueled this unprecedented growth. Unlike the 1970s, when the U.S. was held at bay by OPEC withholding oil production for political reasons, the growth of the oil industry during the 1990s, and beyond, will be more likely be determined by the laws of supply and demand. As democracy and capitalism are spreading around the world, global oil consumption is at record levels. Throughout Latin America, Russia, India and Asia, economic growth is accelerating at a remarkable pace; much faster than anything we have seen in the U.S. Recently, Forbes described the development now exploding across Asia. --Forbes

As any astute investor knows, it is extremely difficult during these times to find financial opportunities which provide both security and a solid return on your hard-earned money, Conventional investment in CD’s, savings accounts, money markets, mutual funds, stocks and bonds, etc. are currently bringing less than satisfactory returns. The Wall Street Journal, Forbes, Fortune and other well know financial publications have shown the recent volatility in the financial markets. T he future prospect for profits are even worse when inflation is calculated. Now is the time to diversify your portfolio in hard dollar investments in oil and gas drilling programs. The key to better return is to diversify your portfolio in energy related investments. Take advantage of opportunities which have excellent risk-to-reward ratios while still maintaining you personal and or family financial foundation. Prudent investment in sound, well researched oil and gas programs, can offer a significant monthly cash flow from the sale of oil and gas well production and very significant tax advantages not found with normal investments. With the additional benefits of higher prices, these benefits far exceed gains and tax advantages on energy related stocks.

Oil Clock


Find out how to invest in energy stocks at EnergyAndCapital.com.

Wednesday, April 29, 2009

Oil higher as gasoline supply shrinks



NEW YORK (CNNMoney.com) -- Oil prices rose Wednesday after a government report said supplies of gasoline fell unexpectedly.

At 10:40 a.m. ET, crude prices rose $1.25, or 2.5%, to trade at $51.17 a barrel. Prices were up $1.02 to $50.94 just prior to the report's release.

In its weekly inventory report, the Energy Information Administration said stockpiles of gasoline fell by 4.1 million barrels in the week ended April 24.

Analysts were looking for an increase of 900,000 barrels, according to a consensus estimate compiled by Platts, an energy information provider.

The EIA report also said oil supplies rose by 4.1 million barrels, while analysts were expecting an increase of 1.8 million barrels.

The price of oil is far off its record high of $147.27 a barrel in July. Consumers have scaled back their use of energy amid uncertainty about when the recession will ease. That in turn has caused a glut in supply.

As of last Wednesday, U.S. crude supplies were at a 31-month high of 1.074 billion barrels, according to Platts. The high supply has kept the price of crude hovering around the $50-a-barrel mark in recent months.

That's too low, according to the secretary general of the Organization of Petroleum Exporting Countries, whose members produce 40% of the world's crude.

Earlier this week, Abdalla Salem al-Badri said $50 per barrel is too low for producers to invest in production. He said non-member countries, including Russia, should be cutting output to help put a floor under prices.

Gasoline prices: The national average price for a gallon of regular unleaded gasoline snapped four straight days of decline, rising to $2.05 from the previous day's $2.048, according to survey results released Wednesday by motorist group AAA.

The EIA report also said distillates, which are used to make heating oil and diesel fuel, rose by 1.8 million barrels. Analysts expected an increase of 1.3 million barrels.

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