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, June 4, 2009

Oil Settles Just Below $69 on Recovery Hopes


Reuters | 04 Jun 2009 | 03:34 PM ET
Oil prices hit a seven-month high Thursday after U.S. data showed a drop in jobless claims, boosting expectations of an economic recovery that could revive ailing energy demand.

U.S. light, sweet crude [US@CL.1 68.69 2.57 (+3.89%)] for July delivery rose $2.69 to settle at $68.81 a barrel after peaking at $69.60 earlier in the day — the highest level since early November. London Brent crude [GB@IB.1 68.55 2.67 (+4.05%)] gained $2.83 to $68.71.

"There is a hell of a lot of momentum in these markets right now," said Addison Armstrong, director of market research at Tradition Energy in Stamford, Conn.

U.S. investment bank Goldman Sachs said a potential economic rebound alongside production cuts by the OPEC cartel could propel crude to $85 a barrel by the end of the year and to $95 a barrel by the end of 2010.

Oil's gains Thursday came after a U.S. report showing the number of U.S. workers filing new claims for jobless benefits fell for a third straight week, indicating some loss of force in the pace of the job market's deterioration.

The data contributed to a rally on Wall Street of about 1 percent.

"As has been the case lately, constructive economic data has been used as an indicator that the economy will improve and that oil demand will follow," said Peter Beutel, president of trading consultants Cameron Hanover in New Canaan, Conn.

Some analysts cautioned, however, that a staggering rebound in oil prices from lows near $30 a barrel this winter might be overdone given continued soft demand and high stockpiles. Oil had closed more than $2 a barrel lower Wednesday, after the U.S. Energy Information Administration reported U.S. crude inventories rose 2.9 million barrels.

Inventories of crude oil have swelled since the start of the economic crisis last autumn as global energy demand dipped for the first time in a quarter century. Aside from brimming onshore storage levels, some 100 million barrels of crude oil have been stowed away on vessels at sea, French oil major Total's head of strategy and planning told the Reuters Global Energy Summit Thursday.

Experts have said high oil inventories at sea could quickly flood the market once profits from holding onto the crude fall below the cost of storage. Concerns over weak demand and rising inventories have led producer group OPEC to agree to 4.2 million barrels per day worth of crude oil output cuts since September.

Saudi Oil Minister Ali al-Naimi has said OPEC would wait until crude inventories fall to around 53 days of forward cover — nearly 10 days below current levels — before considering raising output again.
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