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.

Thursday, May 7, 2009

Oil Rises Above $57 After Hitting 2009 High


Reuters | 07 May 2009
Oil rose above $57 a barrel on Thursday, having earlier hit a fresh 2009 high, as signs of economic improvement in the United States boosted expectations of future increases in demand for oil products.

However, a dip on U.S. stock markets saw oil prices pare gains.

U.S. light, sweet crude rose more than $1 to trade above $57 a barrel, off an earlier peak of $58.57, oil's highest level since Nov. 17, 2008. London Brent crude also traded higher.

Labor Department data on Thursday showed the number of U.S. workers filing new claims for jobless aid unexpectedly fell by 34,000 last week, adding to scattered indications that the severity of the recession may be easing.

These numbers preceded key U.S. non-farm payroll numbers due to be released on Friday.

Stress Test

The market was also watching for the results of the U.S. government stress tests on the ability of banks to weather a deep recession, to be released at 5pm EST.

Expectations for rising oil demand as summer approaches were fuelled by leaks of the test results that suggested most banks were healthier than earlier thought.

U.S. crude inventories rose again, but by a lower-than-expected 600,000 barrels against forecasts for a 2.2 million barrels build, while U.S. gasoline stocks fell last week by 200,000 barrels to 212.4 million, the Energy Information Administration said on Wednesday.

Saudi Arabia, the world's top oil supplier, said it would not raise supplies for the time being as it attempts to shore up prices.

The kingdom is pumping below 8 million barrels per day (bpd) and is unlikely to increase that production as world supply continues to outpace demand, Saudi Aramco Chief Executive Khalid al-Falih said on Wednesday.
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