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.

Friday, July 24, 2009

Link to Oil Decline Website

http://www.oildecline.com/
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Friday, July 10, 2009

IEA Sees Global Oil Demand Bouncing Back in 2010


Reuters | 10 Jul 2009 | 06:06 AM ET
Global oil demand will bounce back by 1.7 percent, or 1.4 million barrels per day (bpd), year-on-year in 2010, led by rising consumption in emerging economies, the International Energy Agency said on Friday.

Making its first 2010 forecast in a monthly report, the adviser to 28 industrialized countries predicted oil demand next year would reach 85.2 million bpd next year, from 83.8 million bpd this year.

It said the demand outlook for this year was "effectively unchanged" — down 2.9 percent, or 2.5 million bpd compared with last year.

David Fyfe, head of the IEA's oil industry and market division, said the extent of recovery in world oil demand would rest on the performance of the global economy and prices.

"It's highly dependent on economic recovery materializing and the expectation (oil) prices will remain in a relatively moderate range," he said.

He said a small upward revision in the estimate for oil demand this year "should not be interpreted as green shoots."

The 11 members of the Organization of the Petroleum Exporting Countries subject to output curbs pumped 75,000 bpd more in June, compared with the previous month — taking their compliance with promised cuts down to 68 percent from a revised estimate of around 69 percent in May.

The latest Reuters survey pegged OPEC compliance at 72 percent.

Not Much for OPEC

OPEC members have promised to reduce their oil output by 4.2 million bpd from the level they produced last September in response to a sharp decline in oil demand triggered by the global economic downturn.

AP

But as oil prices have risen, several OPEC members have begun to produce more oil than their implied output quotas.

Oil prices have been volatile over the last year, peaking at an all-time record of more than $147 per barrel a year ago, plunging to below $40 in December and then recovering to more than $70 in June.

The benchmark U.S. light crude oil [US@CL.1 59.46 -0.95 (-1.57%)] was trading around $60.00 per barrel, down on the day. Earlier, oil hit a session low below $60, and prices rose slightly following the IEA report.

"It is not a report that is going to add to the downside," said Petromatrix analyst Olivier Jakob. "It is slightly positive and won't add to the weak trend of recent days."

The IEA said demand for OPEC crude was expected to remain limited following a 330,000 bpd upward revision to non-OPEC supply, mostly because of higher-than-expected Russian output.

It saw demand for OPEC crude in 2009 at 27.7 million bpd and said it would edge up only slightly to 27.9 million bpd in 2010. This is in line with OPEC's own view.

The producer group said this week that world demand for its oil would not recover to levels seen before the global economic slump until 2013.

"Potentially, there is not an awful lot there for OPEC," said Fyfe.

The IEA said oil inventories had increased worldwide in May, particularly in North America, Europe and the Pacific, taking stocks to the equivalent of 62.5 days of forward cover at the end of May, 7.2 days more than a year ago and up from 62 days at the end of April.
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