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.

Tuesday, May 12, 2009

Oil Rises Above $60 to a 6-Month High as Chinese Imports Surge


May 12 (Bloomberg) -- Oil rose above $60 a barrel for the first time in six months after China, the world’s second biggest energy-consuming country, increased crude imports by 14 percent in April.

Deliveries reached 16.17 million metric tons last month, or 3.9 million barrels a day, a statement on the Chinese customs department’s Web site showed today. The dollar fell to the lowest level against the euro since March on signs the worst of the recession may be over. A weaker U.S. currency bolsters demand for commodities as an alternative investment.

“The Chinese numbers are pretty stunning,” said Bill O’Grady, chief markets strategist at Confluence Investment Management in St. Louis. “The Chinese are looking at prices now as a good value and they are worried about all of the dollar assets they have. They are buying everything, any raw material they can get their hands on.”

Crude oil for June delivery rose $1.27, or 2.2 percent, to $59.77 a barrel at 9:01 a.m. on the New York Mercantile Exchange. Futures touched $60.08, the highest since Nov. 11.

China will increase imports of commodities including oil and boost inventories of strategic raw materials as prices are at their lowest in seven years, the nation’s economic planner said in March.

The dollar declined 0.6 percent to $1.366 per euro, from $1.3582 yesterday. It touched $1.3707, the weakest level since March 23.

Oil prices are up 34 percent this year, supported by record production cuts announced by the Organization of Petroleum Exporting Countries. OPEC ministers are scheduled to discuss output levels at a May 28 gathering in Vienna.

‘Too Early’

“It’s too early to say” what decision the group will make at its next meeting, Qatari Oil Minister Abdullah bin Hamad Al- Attiyah said at the opening of the South Hook liquefied natural gas terminal in Wales.

U.S. crude stockpiles remain at the highest since 1990 and probably gained 1 million barrels last week, according to the median of 13 responses in a Bloomberg News survey. Supplies rose to 375.3 million barrels in the week ended May 1, the highest since September 1990, the Energy Department said.

Brent crude oil for June settlement rose $1.13, or 2 percent, to $58.61 a barrel on London’s ICE Futures Europe exchange. The contract climbed as much as $1.43, or 2.5 percent, to $58.91, the highest since Nov. 10.
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