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COMEX gold futures trading over $1152 as prices hit new record highs

Low Ee Mien — Wed, 18 Nov 2009 06:50:00 -0800

The EUR/USD forex exchange rate rose above 1.49 on Wed 18 Nov 2009 as the US dollar, plagued by poor investor sentiment, pushed COMEX gold futures to new record highs. Prices in COMEX gold futures trading hit record highs over $1152 after setting a series of new records in recent weeks.

Due to currency exchange rate differences, a weaker USD makes dollar-priced assets such as gold cheaper for buyers using stronger currencies. Traders said the dollar's overall weak tone remained intact owing to the prospect of US interest rates remaining low for some time yet, as the Federal Reserve maintains its benchmark interest rates near zero. The US currency is now used for carry trades where dollars are borrowed at low rates to invest in higher-yielding assets overseas, increasing pressure on the US dollar.

- Commodities futures markets are getting lively as trading shifts to gold futures and by extension silver futures as well receiving steady inflows of money from investors and institutions alike, driving prices higher. Like many in the contrarian community, I have been looking for gold futures to hit local maxima of between $1100-1200, we'll see if that remains to be on track. COMEX gold trading volumes and prices may slow down a little when gold prices start to hit resistance levels, but where exactly that may be remains to be seen as we are now literally in uncharted territory.

Real-time mobile live forex quotes/rates/charts for EUR/USD, USD/JPY, currency exchange pairs

Low Ee Mien — Mon, 16 Nov 2009 07:18:06 -0800

A set of pages on the new m.post1.org mobile sub-domain has been created to display the mobile live forex rates for reference by market observers or individuals who are looking into trading currencies. As currency trading is typically highly leveraged, it is critical to choose among the many forex trading platforms available, and it is anticipated that companion tools such as the desktop live forex charts page and this new set of mobile live forex rates pages would come in useful.

When the forex market is open during trading hours which are 24/5, or 24 hours a day for the 5 working days of the working week, the real time forex quotes for both the desktop and mobile editions would be automatically updated. For the mobile edition, depending on your mobile browser, if it does not automatically reload, you could click on the refresh link to update the page manually.

The following free real-time forex charts are available :

US-Europe Currencies
EUR/USD | GBP/USD | USD/CHF | USD/CAD

Asia-Pacific Currencies
USD/JPY | AUD/USD | NZD/USD | USD/SGD

Is forex easy? While the basic concepts may be readily understandable, the first being that the market is a means of forex currency exchange, and the next is that the forex exchange rate transactions are done in pairs of one currency traded against another, in terms of increments called pips which are 1/100th fractions of a cent. If that were all that you needed to trade forex, plus an understanding of how the leverage mechanisms work, then that would be it. But the real trick is in deciding which forex pairs to trade and when to trade.

A description of the forex spot and futures market follows :

Forex spot and futures market

The foreign exchange market is the largest and most liquid financial market in the world, with daily turnover over US$3 trillion. The forex market (or currency/FX) lets banks and other institutions easily trade currencies, featuring large trading volumes, liquidity, geographic dispersion, long trading hours (24 hours except weekends), and use of leverage. Forex futures contracts are also actively traded. The US dollar is involved in 86.3% of transactions, the euro 37.0%, yen 17%, and sterling pound 15%. Volume percentages add up to 200% as each transaction involves two currencies.

HP network strategy : $2.7 billion acquisition of 3Com steps up Cisco competition

Low Ee Mien — Fri, 13 Nov 2009 15:44:56 -0800

bloomberg.com :

HP, the world's biggest personal-computer maker, plans to buy 3Com for $2.7 billion, stepping up competition with Cisco in the computer-networking market. Both 3Com and Cisco make network routers and switches. 3Com shareholders will receive $7.90 a share in cash, 39% more than today's closing price. Hewlett-Packard selected 3Com partly because of its presence in China. 3Com has 2,400 engineers in China who will join HP to work on research and product development.

HP CEO Mark Hurd is seeking to add to HP's $118 billion in annual sales, expanding into markets that offer higher profit margins than printers or personal computers. HP bought more than 30 companies since he took over as CEO in 2005. HP already expanded its computer-services business last year with the $13.2 billion takeover of Electronic Data Systems.

- You step into my turf, I step into yours. That looks like HP's new strategy. With Cisco making moves into HP's server territory, HP's response is to move into Cisco's network territory. All very interesting, but it might take a while for customer perceptions to shift. After all, as a individual consumer, I might buy HP printers, HP PC's, or HP laptops, but would I, as an *enterprise* customer, specify HP network equipment intead of Cisco's, for an upcoming project or tender/bid? For now, I am not quite sure about that at all. Unless they are able to deliver compelling price/performance figures and even then enterprise customers might want to wait until it has been, how shall I put it, "combat proven" out in the field. Which, of course, creates a classic chicken-and-egg problem.

COMEX gold futures price hits new record high over $1111 as Dow rises 200 points

Low Ee Mien — Tue, 10 Nov 2009 06:49:58 -0800

nbr.co.nz :

Wall Street continued its rally, pushing the Dow Jones Industrial Average to a 13-month high, as investors sought resource and financial shares. Gold futures again reached record levels, as the US dollar sank. Crude oil futures also went higher. The Dow closed 203.52 points up at 10,226.94, the highest finish since 3 Oct 2008. NYMEX crude oil prices for Dec 2009 delivery climbed for the first time in three days, rising to $US79.10. The rise came as oil and natural gas companies in the Gulf of Mexico evacuated workers and halted some output as Tropical Storm Ida blew through the region.

Gold futures climbed to a record for the second straight session as the slumping dollar spurred demand. COMEX gold futures for Dec 2009 delivery rose $US12.40 to $US1108.10 an ounce in New York. Earlier, gold prices reached a record high of $US1111.70. The dollar weakened to a 15-month low against the currencies of major trading partners after G20 nations agreed to maintain economic stimulus measures, encouraging investors to buy higher-yielding assets. The dollar depreciated in the biggest decline in four days. The EUR/USD forex rate touched $US1.5020, the weakest level since October 26.

- While gold futures have been setting record highs, silver futures have been holding their own as well above the $17 level. As a commodity, gold price movements seem arbitrary but if you treat it as a currency versus other currencies a clearer picture emerges, hence some of the online discussions re: gold commodity or currency? And if you are into gold trading, it is not really necessary that you go into the futures or options markets. Pick a gold ETF which will serve you well - and of course there's no doubt that GLD, the SPDR Gold Trust, is the proverbial $37 billion elephant in the room.

As for the current COMEX gold price, I would say that it may be heading into short-term overbought territory in the $1100 to $1200 range. Personally I am lightening up a little but regular readers know that I'm of course a long term gold, energy and general resource bull, hence the title of this blog : "Inflation, Investing and Everything". In the grand scheme of things, $1000 or $1100 gold prices are quite possibly just milestones on the way to greater heights. And with USDX, the US Dollar Index, doing its falling-below-76 thing, the gold-as-an-investment crowd will only get larger over time.

Singapore : First Zero Energy Building launched with largest solar power installation in Southeast Asia

Low Ee Mien — Mon, 9 Nov 2009 20:17:36 -0800

channelnewsasia.com, manilatimes.net :

The inaugural Singapore Green Building week started with the launch of Singapore's first "Zero Energy Building". The Zero Energy Building along Braddell Road, a three-storey office building, cost S$11 million [USD $7.9 million] to retrofit and is expected to generate as much electricity as it consumes. It has various green features which act as a test bed for clean energy technologies before being introduced into the industry. The visitor's centre has plants on its walls which help reduce external wall temperatures by up to 12 degC while a solar chimney sucks out the warm air from the room. Panels help shade the building from the sun and bounce natural light into the interiors.

A massive array of solar panels of 1,300 sq metres [14,000 square feet] - almost half a football field and the biggest such installation in Southeast Asia - covers the roof. The solar photovoltaic power panels can generate about 207,000 kilowatt-hours (kWh) of electricity annually. Three hours of sunlight would be enough to supply the building's energy requirement for a day. At night and when there is no available sunlight, the building can tap energy from the grid. While it might cost 5% more to retrofit existing buildings with green design and technologies, experts said the payback is not as long as some might expect. Cash incentives are already in place under the Green Mark certification scheme to encourage buildings to go green. The Singapore government aims to get 80% of all buildings on Green Mark certification by 2030.

- Another good eco/green initiative from the Singapore government, which, post-Kyoto, has been making quite a bit of progress in the area of renewable energy and other pro-environmental issues, from various tax incentives for green vehicles such as hybrid cars, to setting up a waste-to-energy power plant, water-recycling plants, and ongoing clean & green campaigns.

The Zero Energy Building will be a landmark Singapore development, and will pave the way to building green homes and other office buildings in line with the government's move towards Green Mark certification of all new buildings as green buildings and ongoing retrofitting of existing ones.

In Asia, Singapore aims to be one of the pioneers in building green homes, with the development of the Treetops@Punggol public housing project being a prime example. Though there is not quite enough land in Singapore for a full-scale solar or wind power project to provide grid power, as alluded to in my earlier post, ongoing developments will still tackle the issues of energy efficiency, and for eco-homes, solar power would still feature prominently with the existing power grid providing supplemental power.

Hopefully, the Singapore experience will show that the world needs a systems approach to tackling energy and environmental issues from many different angles, as opposed to slogans such as a "carbon zero building" or a "zero energy home". For homes, the cost of residential solar panels is still high though it has been coming down significantly, and of course it ought to be recognized that "eco-" or "green"-ness entails much more than putting up solar panels - we need a total systems solution that, as the peakoiler community is saying nowadays, necessarily includes "all of the above", whether it be energy efficiency, renewable/alternative energy sources, nuclear power, hybrid/electric cars, vehicle-to-grid (V2G), green building design, intelligent grids, cooling/heating system design, water and materials recycling, and more. The works, in short. The future of solar energy is bright, but what we really need, is truly "all of the above".

Singapore inflation rate negative for 6 months as CPI falls to -0.4% in Sep 2009

Low Ee Mien — Wed, 4 Nov 2009 20:04:05 -0800

This article belongs to the Singapore inflation watch story arc.

channelnewsasia.com :

Singapore's inflation rate as measured by the consumer price index (CPI) fell for the 6th consecutive month in Sep 2009. Data from the Statistics Department showed that consumer prices fell 0.4% from a year ago, mainly due to lower costs of housing, recreation and transport. Housing costs went down 2.5% due to lower electricity and gas tariffs, as well as cheaper liquefied petroleum gas. For the 9 months to Sep 2009, consumer prices rose 0.4% compared to a year earlier.

- Enjoy the current rate of inflation while it lasts. I said pretty much the same thing a while back. Now, with the Singapore property market apparently doing its recovery thing, and crude oil prices having bounced off the lows of $32.40 to test the $80 level currently, look out for the average rate of inflation to start picking up again in the near future.

As usual, it's a confluence of various factors. An obvious driver is the economic recovery factor, with money supply being a less obvious but equally important factor. If we're talking about real inflation, it does take two to clap : the money supply growth rate as compared to the economic growth rate. Or, vice versa, rate of decline, if that were the case. For now the current inflation rate is in negative territory, but with the torrent of money now starting to work its way into the economy, don't expect that to last too long. The inflation current may well come in and sweep people away by surprise. Watch for it.

Shell cuts 5000 jobs as 2009 Q3 profits down 73%, hit by falling oil prices

Low Ee Mien — Wed, 4 Nov 2009 15:40:05 -0800

news.yahoo.com [1] [2] :

Shell, Europe's largest oil company by market value, said it was cutting 5,000 jobs to tackle the tough economic environment. Shell said 2009 Q3 net profits fell 73%, hit by falling oil and gas prices and refining margins, and Shell CEO Peter Voser warned of a slow recovery, amidst renewed fears the global economic recovery may be more protracted than thought, which could weigh on crude oil prices. Excluding one-off and non-cash items, Shell's 2009 Q3 profits came to $2.62 billion. Voser said his restructuring program was yielding results with operating costs lowered by $1 billion in the first nine months of 2009. Oil and gas production for the quarter was 2.93 million barrels of oil equivalent per day (boepd), flat on the same quarter of 2008.

- With the latest crude oil prices testing the $80 support/resistance level, and the Peak Oil factor that is usually left out of most discussions, it would be a challenge for oil majors like Shell to grow their oil and gas production volume which would in turn lead to the record-breaking profits of yesteryear. Sure, falling gas prices are welcome by most consumers but the flipside of the argument is that oil & gas companies have even less incentive to go out and search for new fields, which, as the peakoilers have been arguing, will lead to an even bigger crisis just as we are hitting the downside of the Hubbert Curve.

The crude oil price today may be $80 or thereabouts, but what society needs right now, believe it or not, are *rising oil prices*, in order to accomplish two things : a. to encourage consumers to move towards efficiency and alternative energy sources (such as the trio of solar, wind and nuclear), and b. to encourage producers to continue to put in the necessary investment to explore for new oil and gas reserves in order to tide us over the peak oil transition period.

Largest solar power plant in US to go online in Florida

Low Ee Mien — Mon, 26 Oct 2009 05:35:51 -0700

softsailor.com :

The largest solar power plant in the United States may soon go live in Florida. The Desoto Next Generation Solar Energy Center will be able to convert sunlight into 25 MW of renewable solar electric power, twice the second-largest solar power system in the US. It is scheduled to go live on Tuesday [27 Oct 2009] and President Barack Obama will visit the facility on the launch day. The plant is located 80 miles southeast from Tampa and it covers 180 acres of land. It cost $150 million and took over 400 employees to build, though only a few employees will run it.

- Great effort at renewable energy in the US. 180 acres works out to 7.84 million square feet. That kind of land might be a little hard to find back here in tiny Singapore. Now, peakoilers are well-versed with the basic advantages and disadvantages of solar power, including the cost of the solar panels themselves, load capacity and the baseload power issue, and sometimes EROEI is brought up as well.

What is less commonly discussed is land - or the lack thereof. There are quite a number of places especially in Asia where it is a big factor. Besides Singapore, you might also think about places like Hong Kong or Tokyo where there simply isn't any space to build due to geographical constraints - be it factors like being surrounded by the ocean, or being located in between the ocean and mountains inland.

Green energy is laudable but it is clear that built-up city areas without a huge hinterland will find it rather difficult to implement solar power installations on an industrial scale. Plus, 80% of the population here lives in tall apartment buildings for which, even if technological breakthroughs like nano-solar paint (which have been talked about since 2005 - and earlier) were to appear, makes for yet another set of challenges. We need to recognize that not everyone lives in a country with a huge landmass, and not everyone lives in houses with roofs and gardens and are able to put up a bank of solar cells any time they wish.

One more thing about the land factor over here in Singapore : the prices are steep and with the recovering Singapore property market, it's certainly not getting any cheaper nowadys. Something that takes up over 7 million square feet might run into the billions of dollars in terms of land costs and development charges payable to the government. Throw in another two orders of magnitude to the 25MW, the 180 acres, and the cost, and you can see the kind of challenges that built-up Asian cities are facing. It's great for places where large solar power plants are feasible, land is cheap and plentiful and nearby the area where the power will be utilized, but for the rest of us in other parts of the world, we'll probably have to think of something else.

2008 Honda Civic Hybrid FD3 real world fuel consumption gas mileage figures

Low Ee Mien — Sun, 25 Oct 2009 16:51:32 -0700

Of course, I may be eyeing that 2010/2011 Honda Civic Hybrid right now, but what of my current one, the 2008 edition? Mind you that although hybrids have gained a much wider level of acceptance than say, 5 years ago, there are still misconceptions abound, especially with regard to things like gas mileage, highway vs city/urban fuel economy, and even the technology itself is sometimes misunderstood. I still get the odd questions like "do hybrid cars run on natural gas?" or "do you still need petrol/gasoline?" from time to time.

I have been diligently noting down the fuel mileage figures for my 2008 Honda Civic Hybrid for over a year now, and Biow had been asking me what I intended to do with all these numbers. Well I had been intending to publish my detailed fuel consumption figures for a while now and I admit it took me till two cars and three years later, but here it is for the current one (click here if you have problems viewing the iframe) :

The above are "live figures" in the sense that whenever I update my Google spreadsheet after pumping up a full tank, these figures will also be updated - according to Google the table should be updated within 5 minutes of that. A quick explanation of the data columns shown above :

km/l - kilometers per liter, which the Asians and European community would be more familiar with
mpg - miles per gallon, for our American friends
SGD cts/km - amount it costs to travel each km in Singapore currency (Singapore Dollar/SGD terms)
USD cts/mi - amount it costs to travel each mile in US currency (US Dollar/USD terms)
SGD $/liter - average cost of petrol in SGD dollars per liter
USD $/gal - what it would cost in gasoline, converted into US dollars per gallon

If you wish to be pedantic about it, you might want to note that the USD/SGD forex rate is converted in near real-time using my (rather popular may I say) currency conversion formula for Google spreadsheets. Also, though European folks are used to such things, do note that there is a significant amount of government tax involved in the petrol prices over here in Singapore (read the link for a detailed explanation).

As of today's writing, my Honda Civic Hybrid sedan has achieved an average lifetime, *real world* fuel consumption of 17.68 km/l or 41.60 mpg. While not the most fuel efficient car in the world, it is still better than my earlier conventional Civic of the same model platform (which itself is a story for another day) which had managed around 13 km/l (30 mpg).

I would say it's a mix of around 60-40 highway vs city/urban driving, and of course with the 3-stage VTEC, CVT and all, highway fuel economy with the Civic Hybrid is quite good, reaching into the 25 km/l (58 mpg) range during sustained highway cruising. It's the traffic jams that don't help at all, and this is where the inevitable "Honda Civic Hybrid vs Toyota Prius Hybrid" fuel economy debates have raged all over the Internet. And if you are talking about the new EPA gas mileage figures, I would say I'm pretty darn close, with the 2006-2008 Civic Hybrid models being essentially similar, the new EPA fuel economy rating is 42 mpg, which is very close to my (current) 41.6 mpg.

It would also be useful to note that my figures are for a single sample size of *one* car, based on *my* driving patterns (or rather Biow's since she drives more often these days). If you are in the market for fuel efficient vehicles, or looking for hybrid car comparison figures, you may also want to look at GreenHybrid's Fuel Economy Comparison table, where as of this writing, the Toyota Prius is at a median mpg of 48.21 mpg and the Honda Civic Hybrid is at 47.16 mpg, both with sample sizes of over 1000 each. As always, be aware that these are more American-centric numbers probably with more highway usage and given the nature of that website there are probably more than a couple of expert hypermilers included in the statistics.

Fuel consumption figures are subject to any number of factors, from make, model and technology, to driving patterns, traffic, temperature, climate and weather conditions and more, but I hope that for my current model, these figures are of some help toward whatever research you may be doing. You may also bookmark this page and come back from time to time to see how things are going.

Canada : Harvest Energy Trust in C$4.1 billion sale to Korea National Oil Corporation

Low Ee Mien — Fri, 23 Oct 2009 05:54:36 -0700

marketwire.com :

Harvest Energy Trust ("Harvest") (TSX:HTE.UN) (NYSE:HTE) today announces that it has entered into an agreement (the "Arrangement Agreement") with Korea National Oil Corporation ("KNOC") for the purchase of all the issued and outstanding trust units (the "Units") at a price of C$10.00 per Unit for a total cash consideration of approximately C$1.8 billion plus the assumption of C$2.3 billion of debt ... the Arrangement represents a 47% premium over the 30-day weighted average trading price of the Units on the Toronto Stock Exchange up to and including October 20, 2009 ... Harvest will suspend its distribution and Premium Distribution, Distribution Reinvestment and Optional Trust Unit Purchase Plan ("DRIP") effective immediately ...

- Puns about "Harvest gets harvested" aside, this move by the Korean national oil company in my opinion highlights a number of points :

1. The Asians need a lot of energy for their economic development and they need it fast.
2. The Asians have a lot of falling USD and they want to trade them in for tangible goods fast.
3. Canadian energy royalty trusts are undervalued and make for easy pickings.

Harvest was the energy trust I referred to earlier when I referred to it as my third-favourite energy trust, and it really was yielding over 40% at that point. Of course that couldn't be true for very long. Now that it is going to be bought over and de-listed from the TSX exchange, I am looking out for candidates to replace that part of my asset allocation.

With the multi-hundred-billion-dollar sovereign wealth funds, government investment companies and such now operating in this area, I fear it may be hard to be a buy-and-hold investor in this area going forward. There is going to be no participation for the individual retail investor if the big whales come into the room and simply buy up the whole place.

The timing of this purchase is also pretty curious from my point of view. It frustrates me no end to now have to scramble and re-deploy my capital toward another energy trust of equivalent size and enterprise value, just when the tidal wave of money supply is making its way into the economy and just as oil prices are being driven upwards in this wave of momentum. This tells me that the governments are now literally buying into the whole peak oil and resource depletion theme that the old-time peakoilers picked up on years ago. Oil prices are going up. Way up. Hold on for the ride!

NYMEX crude oil prices hit $80, gold prices trade near $1070.80 record high

Low Ee Mien — Tue, 20 Oct 2009 05:48:49 -0700

Heads up. Crude oil futures have hit the $80 level, with a current session high of $80.05 according to NYMEX. Bloomberg reports that :

Crude oil prices rose above $80 per barrel for the first time since Oct 2008 in New York while gold prices traded near an all-time high of $1,070.80 reached on 14 Oct 2009 as the USD slipped to a 14-month low against the euro, dropping to 1.4994. Crude oil for Nov 2009 delivery rose to $80.05 on NYMEX. Oil prices have gained 25% in 3 months on a stock market recovery and the sliding US dollar, with the USDX falling to 75.181. Gold prices have gained 21% for the year as a weak USD and rising government debt spur inflation concerns. Other commodities also posted gains, with copper making a 6-week high, rubber advancing to a 1-year high and corn reaching 3-month highs.

- It's still early days yet but as I've said earlier crude oil prices *may* be heading for a consolidation period between $75 to $80, give or take $5. $75 has been a critical resistance level now broken through, the next step is to test its potential as support. The next resistance level which is $80 was briefly touched and exceeded by just 5 cents. The next real test appears to be around $90 to $100 which is what I might want to be shooting for.

I've got a couple of ill-fated oil trades which ought to do pretty well if $80 is breached, and to balance that out, I've got a couple of 50% gainers which I'm holding for now. If you are looking to go into the market at this point you're either a rather short-term trader (to trade in and out) or a longer-term-oriented peakoiler/investor (in which case you'd be buying regularly anyway and holding on for the ride). The technicals are looking overbought but you know what they say about the markets staying irrational longer than you can stay solvent. Best to be on the lookout.

NYMEX crude oil prices rise above $78 on Nigeria crisis, US economic recovery

Low Ee Mien — Sat, 17 Oct 2009 19:36:05 -0700

channelnewsasia.com :

NYMEX crude oil prices rose for a 7th straight session on Friday [16 Oct 2009], fuelled by a jump in industrial production in the US and rising tensions in Nigeria. Light sweet crude for Nov 2009 delivery reached $78.67, the highest since Oct 2008. Oil prices ended the week at $78.53. The NYMEX crude oil futures contract has gained more than $9 or almost 13% during its 7 days of rise. Oil prices had tumbled from historic record highs of $147.27 in Jul 2008 because of the global recession and fell to $32.40 in Dec 2008.

US manufacturing output in 2009 Q3 advanced at an annual rate of 5.2%, the first quarterly gain since 2008 Q1. US gasoline stocks fell 5.2 million barrels, a surprise drop indicating rising demand fuelled by hopes of economic recovery. Warnings by the MEND rebel group in Nigeria of a resumption of an "oil war", ending a 90-day ceasefire, also rattled the market. MEND's attacks have severely cut daily crude oil production in Nigeria, the world's 8th largest oil exporter.

- The critical NYMEX $75 resistance level mentioned earlier has now been convincingly cracked if not outright shattered. But oil bulls should not celebrate just yet since technically speaking, things are getting stretched quite a bit with oil prices heading into overbought territory. Watch out for a re-test of the $75 level but now as support instead of resistance. The oil bears would be darned if it breaks the next resistance level at $80 without so much as looking back, but to me, another likely scenario looks like a possible consolidation phase between $75-80.

And now that we have mentioned oil bears, it might be worth the while for the peakoiler community to observe yet another "achievement", that is once we passed $76 we have reached 2 Yergins, a Yergin unit being $38 as mentioned here. The oil bulls, who also happen to be of the peakoiler variety, eagerly await the next milestone, a Triple Yergin, which would be reached at $114 oil.

Hong Kong to introduce electric cars by end 2010

Low Ee Mien — Thu, 15 Oct 2009 21:19:41 -0700

channelnewsasia.com :

Hong Kong announced that it is stepping up efforts to give eco-friendly electric cars the green light, with 200 electric vehicles expected to hit the streets of Hong Kong in the next financial year. The government is said to be in talks with two power companies to launch an electric vehicle leasing scheme by the end of 2010. Experts in Singapore said that more education and incentives are needed for consumers to go green, while more manufacturers [such as Toyota, Mitsubishi and Nissan] are expected to come up with electric vehicles. In Singapore, an electric car could cost around S$6 to power up, in comparison to the equivalent of S$80-90 in petrol [gasoline], at current oil prices.

- Good to see another major Asian city announce an EV initiative. The timing and scope seem to be similar to Singapore as well, with initial trial runs expected by the end of 2010. It may finally be time for electric cars to start to take the limelight now that we see various lithium-ion battery initiatives such as the ones from Toyota, Honda and Nissan start to take off. And now with the infrastructure, batteries and EV models falling into place, it might be a good time for the various stakeholders to think about where all that additional electrical generation is going to come from.

Russia overtakes Saudi Arabia, tops global oil production

Low Ee Mien — Tue, 13 Oct 2009 17:29:56 -0700

peakoil.com -> officialwire.com :

Russia is pumping more oil than ever before, counteracting OPEC production cut efforts to influence the crude price. Russia in September produced 10 million barrels of oil per day [mbpd], a new record for the country that recently surpassed Saudi Arabia as the world's biggest oil producer. The increase is due mainly to the opening of the Vankor field in the Arctic. The Rosneft-operated field is due to reach its peak production of 510 kbpd in 2014; much of its oil will be delivered to China.

OPEC, which accounts for nearly 40% of global crude supply, pumped 26.25 mbpd in Aug 2009, 1.4 mbpd over the production target set a year ago. This comes a few days after British newspaper The Independent reported on a secret plan by China, Russia, France, Brazil and the Gulf states to replace the USD as the pricing currency for oil by a currency basket, which would include the euro, yen, yuan and a future joint currency in the Gulf region. Several OPEC member states and Russia have denied the report.

- While this isn't the first time that Russia has overtaken Saudi Arabia in crude oil production figures, and there may be some who are skeptical over the sustainability of their lead, it would be useful to note where Russia's new-found oil reserves are now coming from, the holy grail of new oil discoveries : the Arctic. Compared to Saudi's aged and declining Ghawar field, the Russians now have the upper hand in the energy production game, with their resources in key areas from crude oil to natural gas to uranium. As the peakoiler community has predicted, and I have blogged about, since circa 2006 - move along, Saudi Arabia : Russia is well on its way to becoming a true energy superpower.

USDX falls below 76 again, EUR/USD forex rate above 1.48 on further US dollar weakness

Low Ee Mien — Tue, 13 Oct 2009 15:50:37 -0700

bloomberg.com :

The US dollar declined to the lowest level against the euro since before the bankruptcy of Lehman Brothers, unwinding gains posted earlier as investors sought safety amid the global credit crisis. The USD's drop helped push gold prices to a record high and oil prices above $74 a barrel for the first time since Aug 2009. USDX, the US Dollar Index, dropped to as low as 75.738. The dollar's decline versus the euro accelerated after breaching $1.4850. The dollar has lost 17% since Oct 2008. Gold prices rose to a record amidst a weakening dollar and inflation fears. Platinum, palladium and silver prices also climbed to 1-year highs.

- Whatever the Asian central banks did in their intervention, either : a. it needs a second round, or b. it can't be helped, as the USD continues its fall. This time, the USDX has gone further below the key 76 support level than earlier, which has lead to corresponding increases in crude oil prices and gold prices. The next support level for the USDX is 74, the next one after that is 72, and unless the US dollar stages another stunning comeback, beyond 72 it's freefall alley.

El Nino may force Indonesia to shelve rice exports plan

Low Ee Mien — Sun, 11 Oct 2009 07:17:30 -0700

This article belongs to the Global food crisis story arc.

bloomberg.com :

Indonesia may shelve plans for the country's biggest rice exports in half a century next year if dry weather caused by El Nino causes production to miss forecasts. The world's third-biggest grower had planned to ship up to 2 million metric tons of milled rice next year, based on a production forecast of 40 million tons this year. El Nino can prolong the dry season in parts of Asia, delaying rains, leading to lower agricultural output. Global rice production may fall 3% to 668 million tons this year, the UN FAO reported.

Rice, the staple food for half the world's population, surged to a record $25.07 per 100 pounds in April 2008 in Chicago as global inventories declined, sparking a global food crisis that prompted exporters including India and Vietnam to curb shipments to secure domestic supplies and cool inflation. Rice futures prices have plunged by almost half since then as growers rushed to expand production. Rough rice for Nov 2009 delivery was recently trading at $13.125 on the Chicago Board of Trade [CBOT].

- Right, it's not the first time that Indonesia is going to limit its rice exports, but couple that with the huge flood in the Philippines that destroyed a portion of their rice crop, throw in rising crude oil prices and all-time record high gold prices and we just might end up with a recipe for rice supply issues and price inflation. I'd say it's probably best for us to stock up on a couple extra bags of rice. You know. Just in case.

Asian central banks intervene to prop up US dollar after USDX fall below 76

Low Ee Mien — Sat, 10 Oct 2009 05:55:05 -0700

reuters.com :

Asian central banks bought US dollars to weaken their own currencies, traders said, as the slumping USD threatens smaller export-driven economies. Asian central banks said to be intervening in currency markets overnight by buying dollars included South Korea, Hong Kong, Taiwan, Thailand, the Philippines and possibly Indonesia.

Emerging market Asian nations, already struggling with weak US demand for their exports, have been doubly hurt because their currencies appreciated against the dollar, prompting intervention. There was also an indication that Russia bought as much as $4 billion this week. Despite the apparent buying, USDX, the US dollar index fell 0.9% to 75.798, a 14-month low. Analysts say the moves are also protection against a double dip global recession. The risk of course, is that the US dollar loses value, making purchases now a bad bet.

- USDX 76 is actually proving to be a reasonably strong support level. But below 72 there is nothing but empty air. We'll just have to see what happens next in the next few weeks.

COMEX gold prices hit new record high of $1061.40 per ounce in third straight session

Low Ee Mien — Thu, 8 Oct 2009 22:54:38 -0700

thisismoney.co.uk :

COMEX gold prices hit $1,061.40 per ounce, a fresh record high for a third straight session as investors bought the metal as a hedge against a weaker dollar. The recent rally has taken gold prices above the $1,032.80 level reached in March 2008. Gold has been one of this decade's best performing assets, rising on average by 15% per year. The US dollar has been hit by reports that the Gulf nations are thinking of ditching USD-based oil prices. Arab states are said to be in talks with Russia, China, Japan and France to replace the dollar with a basket of currencies. Gulf officials have denied it. It is the fear of a bout of global inflation, caused by government recession-fighting fiscal measures, that analysts see as the big cause behind the gold rally.

Like I've mentioned on the goldclubasia.com forum, it's probably wishful thinking at this stage but I'm looking for a rally to $1100+ where we sell the interim top, then a drop back to test $1000 where we buy the interim bottom. A fellow investor says he would like to see $800 to load up, whilst other forum members are talking about a pullback to $950. So there you are, a diverse lot of opinions out there. It *is* encouraging to say the least that we are apparently pulling away from a double-top scenario but I would like to see a few tests at either $1030 or $1000 to establish some sort of gold price support level. Dare I mention that we could be looking at consolidation if this thing keeps up? :)

NYMEX crude oil prices soar above $72 on economic recovery, euro rally

Low Ee Mien — Thu, 8 Oct 2009 18:00:50 -0700

online.wsj.com :

Crude oil prices soared Thursday [8 Oct 2009] as the dollar headed toward a 2009 low against the euro, both moves fueled by increasing optimism about the world economy. NYMEX light, sweet crude for Nov 2009 delivery reached $72.55 per barrel intraday, the highest since 18 Sep 2009. Oil prices shot up to a 3-week high as investors sold out of the dollar and into assets expected to benefit from an economic recovery, including equities and commodities, while the EUR/USD forex exchange rate hit $1.4818. In the short term, oil prices may not yet crack the 2009 intraday high of $75 set in August, with oil inventories still above average levels.

- That's right, $75 continues to be the all-important resistance level for now. The consolidation pattern of +/- $70 might have a few more weeks to run yet, as the bullish factors of money supply, EUR/USD, Iran-Israel work against the bearish factors of oil inventory levels, economic fundamentals and the credit crisis, still ongoing. And of course, few people outside the peakoiler community still continue to acknowledge Peak Oil - the proverbial 800-pound gorilla in the living room - a critical factor that is biding its time to roar back with a vengeance.

COMEX gold prices hit all-time record high of $1045 per ounce

Low Ee Mien — Tue, 6 Oct 2009 21:18:11 -0700

bloomberg.com :

Gold's rally to a record high shows commodity investors remain concerned that the US economic recovery will spur inflation, even as Wall Street forecasts and government bonds suggest stable prices. COMEX gold prices have jumped 18% this year after gold futures touched a record $1,045 an ounce yesterday [6 Oct 2009] amid increasing demand for a hedge against inflation and a weaker USD. Demand for gold is increasing as US government debt reaches record levels and the Federal Reserve keeps interest rates near 0%.

Gold prices have more than tripled in the past 8 years as the dollar tumbled 67% versus the euro. Gold is appreciating along with other assets, from commodities to stocks. The S&P 500 gained 17% this year, and the CRB Index of 19 commodities gained 13%, including a 97% jump in copper, a 60% rally in crude oil prices and a doubling of sugar prices.

- Like I've said before (here and on the forums), vertical or near-vertical rises make me nervous and this is certainly no exception. *Something* is happening but, like I posted, the billion-dollar question is *what*.

Short list :

* USDX making a double-top from 77 marking a trend reversal
* Israel-Iran conflict possibly heating up (should be bullish for oil too, obviously)
* Rumours of oil producers shunning USD, promptly officially denied of course
* Rumours of an ongoing economic recovery (yeah ... right ...)

Meanwhile, with last year's record price around $1030 officially blown away, we can now take a look at the technicals. If this level holds, it will mark a major breakthrough of the critical $1030 resistance level, forming good support over 2 points within a roughly 1-year period. It looks like the probability of a double-top is getting reduced slowly the longer prices hold above $1030. But let's remember not to get ahead of ourselves - a technical pattern is not a pattern until it is *completed*. Gold prices will have to test $1030 over the next few weeks and only upon succesful tests can we come to an intermediate-term conclusion.

NYMEX crude oil prices rise sharply back to $70 on economic recovery signs

Low Ee Mien — Thu, 1 Oct 2009 03:00:46 -0700

channelnewsasia.com :

Crude oil prices rose sharply on Wednesday [20 Sep 2009] on data showing more signs of recovery in the US. NYMEX crude oil for Nov 2009 delivery rallied $3.90 to end at $70.61 dollars per barrel. The US economy moved close to emerging from recession in Q2 2009 - revised data showed a smaller-than-expected 0.7% output decline. An unexpected and large slide in gasoline inventories implied increasing demand, boosting prices. Last week, oil prices slumped amid concerns over rising supplies and continued weak demand.

Elsewhere, the market digested simmering geopolitical tensions over key crude producer Iran. President Mahmoud Ahmadinejad lashed out at demands for access to Iran's newly disclosed uranium enrichment plant being built near the central holy city of Qom. Iran denies the program is aimed at making atomic weapons.

- In times like these when the market is in a consolidation pattern grinding on for weeks on end, sometimes one might wish that it would just, you know, make up its mind, get on with the program and all that. If you zoom out to a longer-term chart (as above) you would see what I mean. Basically the same thing happened from Dec 2008 to Feb 2009 where oil prices would just go back and forth around the $40 level, neither going below $35 or above $45 for any sustained period. And one fine day, it just decided to break out and upward into a multi-month move.

And then from Aug 2009 to this point in time, we're back in another consolidation pattern, neither going below $65 nor above $75 for any sustained period. In fact, $75.00 (exactly) has been a key resistance level. Some call this a trading range, but I don't see much joy in messing around with narrow ranges. The billion-dollar question is whether the next breakout will be to the upside or to the downside.

Of course as usual, I am on the side of the oil bulls, pointing to the time-lag effect in money supply propagation, government stimulus, green-shoots psychology, and a weak-looking dollar, while on the other hand the oil bears point to weak economic fundamentals, falling CRB and BDI (Baltic Dry Index) charts, and continue to lay claims on a repeat of the meltdown of Aug-Oct 2008. Well it's October dudes. Onward back to $100 oil - or bust - total washout, crash, collapse - whatever is the case.

Tesla Model S electric car platform to be used for electric van, MPV and other models

Low Ee Mien — Wed, 30 Sep 2009 21:30:47 -0700

engadget.com -> teslamotors.com :

Via Engadget, as revealed in an official blog post by VP of Business Development Diarmuid O'Connel, the Tesla Model S electric car platform will be put to use in other vehicle models :

.. the Tesla Model S can be plugged into conventional outlets or be fully quick-charged from a higher powered system in as little as 45 minutes. The company unveiled a working prototype in March 2009. The Tesla Model S platform will also be used for derivatives including a minivan, cross-over utility vehicle and a utility van for fleets and other industrial or civic uses.

- Tesla had started out with the Roadster, but they had always wanted to do more than that. The Tesla Model S was the next step in the evolution of their product line and now it looks like they are going to do a whole lot more, albeit with some help from the Obama administration. For now Tesla is maintaining its targeting on the niche, higher-end of the let's say we call it the "non-conventional car" market, whilst the likes of Toyota and Honda are going for the mass market models as usual, with the GM/Chevrolet Volt somewhere in between. But with these new upcoming models Tesla will start to face some real competition and we'll just have to see how that turns out in the years ahead.

Lithium-ion maker A123 Systems IPO electrifies with 50% share price rise, nearly $2 billion market cap

Low Ee Mien — Sun, 27 Sep 2009 06:10:29 -0700

greencarcongress.com :

Lithium-ion battery maker A123 Systems went public [24 Sep 2009] in a widely anticipated IPO. Initially priced at $13.50 per share, the company, which was spun out of MIT, opened trading on the NASDAQ at $17.00, and closed at $20.29, resulting in a market value of $1,964,396,640 at the end of the day.

news.cnet.com :

A123Systems is expected to raise over $400 million through its IPO, closely watched in the green tech community. It supplies batteries for power tools and has built large, megawatt-scale batteries for utilities. It's also eyeing the automotive sector, potentially a much larger market. A123 Systems received a $249.1 million grant from the Department of Energy to build a lithium ion battery-pack factory in Michigan as part of a $2.4 billion investment in the plug-in electric car supply chain. Despite the strong IPO, experts say that lithium-ion batteries, which will be used in a number of upcoming plug-in hybrid-electric vehicles, need to come down in costs significantly for hybrid/electric cars to be more mainstream.

- Lithium-ion is the new in-thing, and nanotech has always been hot. Put these two together and you get something that engenders lots of interest from both investors and the general public. My fund is not long yet and neither am I personally on an individual stock basis. But if/when the PBW ETF (PowerShares Wilderhill Clean Energy) picks up AONE - and it's hard to imagine why it wouldn't with a market cap closing in on the likes of SunPower Corporation - we will be long too.

It has been quite a journey for A123Systems. Putting out an IPO in these turbulent times with the global recession still lingering takes a certain kind of company, and having share prices rise like this is something. Since first tracking them back in 2006, they have had their ups and downs, winning the Black & Decker deal while somehow managing to bungle up the Chevrolet Volt one, at least for the initial production round. The latter apparently had something to do with their focus on cylindrical cells whilst GM/Chevrolet preferred a flat/prismatic format. The good thing is that they've since corrected that oversight with their new prismatic cells (pictured). Here's to hoping that A123 Systems picks up the pace from here and helps build up the electric future.

New efficient nanotech materials may boost enhanced geothermal power systems

Low Ee Mien — Sun, 27 Sep 2009 00:40:54 -0700

peakoil.com -> seattlepi.com :

New nanotech materials could provide the efficiency boost needed to make geothermal power a more practical energy source if research at Pacific Northwest National Laboratory proves out. Geothermal energy fell out of favor in the early 1980's when few places proved to have hot enough rock close enough to the earth's surface to make geothermal power generation efficient and economical. Geothermal power is renewable and produces almost no pollution. Unlike solar and wind power, it provides steady base-load power. But in conventional geothermal power production, hot rock needs to heat water to 300 degF [149 degC] or hotter. That hot rock might be found 5,000 feet beneath the ground in a few places, but typically it's much deeper.

Peter McGrail thinks nanomaterials may help make geothermal more practical by allowing efficient energy production closer to the surface at lower temperatures. "Metal organic heat carriers" are nanomaterials one-thousandth the width of a human hair, of which some could absorb 30% of their weight in organic compounds. In geothermal power systems, this could help drive turbines with organic compounds at lower temperatures. Tests may prove the technology ready to use in 5 years on existing geothermal systems. An MIT study estimates that enhanced geothermal systems could provide 10% of America's electrical generating capacity by 2050.

- One of the things that I really like about geothermal power is its support for baseload generation, as opposed to intermittent energy sources like terrestrial solar and wind (space-based solar power being something else altogether). The other closest renewable baseload-capable contender so far has been ocean power but implementation of that has been sporadic thus far. The big limitation with geothermal power systems has always been geography, putting it in a similar situation as hydro-power systems. If these new nanotech materials work out it may well lead to Geothermal 2.0 triggering a renaissance of sorts in this field.

China strategic oil reserve second phase building starts

Low Ee Mien — Fri, 25 Sep 2009 19:58:13 -0700

reuters.com :

China has started building [34 million barrels] of oil tanks at Dushanzi in Xinjiang in its far west as part of the second phase of strategic oil reserves. The project will cost 2.65 billion yuan ($390 million) and is due to be finished by July 2011. China finished filling the first phase of its strategic oil reserves at the end of last year and has said it plans to stock up when oil prices are relatively low. China will complete building 8 bases under the second-phase plan within 3-4 years. By adding all three stages, China, the world's second-largest oil user, will have capacity for 440 million barrels of crude oil, or roughly 105 days of net imports at current rate, by 2020.

news.xinhuanet.co :

China will "certainly" build a third phase of strategic oil reserves to meet international standards of reserve capacity, Zhang Guobao, head of the National Energy Administration said. Zhang said China was aiming for enough oil reserve to cover the OECD standard of 90 days.

- It is good that China is on the right track to complete their own version of the Strategic Petroleum Reserve. From a Peak Oil point of view, the timing may be a little bit overdue with global conventional crude oil having already peaked back in May 2005, and earlier opportunities to accumulate oil reserves were missed with historical crude oil prices in the $30-$40 range just a few years back, but of course it is better late than never.

As their car population starts to rise, with China car sales jumping up 71% in Jul 2009, their projected oil demand may be set to increase rapidly. Their strategic oil reserves may well be put into use one day when the demand for oil starts to bump up against the limitations of supply.

NYMEX crude oil prices fall to $65 on home sales drop, economic recovery doubts

Low Ee Mien — Thu, 24 Sep 2009 16:10:46 -0700

bloomberg.com :

NYMEX crude oil prices for Nov 2009 delivery fell to $65.89 per barrel , an 8-week low, as sales of existing homes unexpectedly slumped, raising concerns about the economic recovery. Oil futures (see live oil prices) declined after the National Association of Realtors said home purchases dropped 2.7% annually and the dollar climbed against the euro. Futures have ranged between $65 and $75 since July 31.

Concerns about the US housing market also sent the S&P 500 and Dow Jones lower. OPEC agreed at its Sept. 9 meeting to maintain production quotas at 24.845 million barrels a day. Crude oil futures have gained 48% this year on speculation fuel consumption may recover as economies emerge from the global recession and as a weakening dollar encourages investors to purchase commodities as an inflation hedge.

- What I have referred to recently as the "3 lines in the sand" ($70 oil, $1000 gold, 76 USDX) have been proving to be among the toughest challenges yet for the anti-dollar crowd, at least in the recent weeks. Oil prices have to sustain momentum above $70 and preferably $75, gold prices have to breach $1000 and test support successfully, and the USDX has to break convincingly below 76 for the dollar bears to have any traction at all in this market.

Just as I abhor vertical rises in the price of anything (even if it's gold or oil, or perhaps especially), in the same fashion, I am rather skeptical of vertical rises in the price of anything - check out that 90-degree bounce above 76 on the USDX. This might turn out to be a short-term thing - unless oil's support is broken around the 200-dma level which currently stands at $56.57.

Toyota hybrid vehicle sales worldwide surpass 2 million units as of Aug 2009

Low Ee Mien — Sat, 19 Sep 2009 20:10:25 -0700

engadget.com -> green.autoblog.com :

As of Aug 2009, Toyota's global cumulative sales of its hybrid vehicles have topped the 2-million mark. The first Toyota Prius was launched in Dec 1997, the 2nd-gen Prius in 2003 and Toyota's HSD [Hybrid Synergy Drive] system was expanded to MPV's and SUV's. On May 31, 2007, the global cumulative sales of Toyota's hybrid vehicles topped 1 million. This year, Toyota continues to expand its hybrid lineup, launching the Lexus RX450h in April, the 2010 Toyota Prius in May and the Lexus HS250h hybrid - the first dedicated Lexus hybrid model - in July.

As end-August 2009, Toyota calculates that its hybrid vehicle fleet, since 1997, have led to approximately 11 million fewer tons of CO2 emissions than an equivalent fleet of gasoline-powered vehicles of similar size and performance. Toyota currently sells 13 hybrid vehicle models in approximately 50 countries and regions worldwide. Toyota intends to introduce hybrid models in its entire lineup by the 2020's.

- 2 million hybrid vehicles is in itself a laudable milestone for Toyota. But if we were to say, conservatively estimate Toyota's global vehicle sales to be an average of 6 million units per year, in the past 12 years from 1997 to 2009 they might have sold about 72 million vehicles, of which hybrids at 2 million units would have made up about 2-3% of the total. Which sounds right about there - at least on an order-of-magnitude basis if nothing else. There is definitely room for improvement there, as Toyota and its compatriots including Honda, Mazda and Nissan race to revamp the world's vehicle fleet from conventional to hybrid and then to electric. Whether we have the time, money or physical resources to do so, is of course a separate issue for the peakoiler community to debate over.

How to disable Lotus Notes 8.5 client instant spell check

Low Ee Mien — Sat, 19 Sep 2009 02:17:17 -0700

Whilst the spelling check in the Lotus Note client may be useful for some people, it is more of an annoyance to me especially when writing about people, places, projects, or anything else that the built-in spell-checker does not recognize.

So here's how to turn off/disable the instant spell check in the Lotus Notes 8.5 client when sending emails :

1. Go to File, Preferences, Spell Check
2. Uncheck "Enable Instant Spell checking"

Also, while you are reading your emails in the Mail/Inbox tab :

1. From the Action Bar, click Tools, Preferences, go to Mail tab
2. Under "Spell Checking", uncheck "Automatically check mail messages for misspellings before sending"

And you're done.

Other tech tips as follows :

1. How to insert currency exchange rates into Google Spreadsheets
2. How to insert images/pictures/photos into Gmail

2009/2010 Transformers Bumblebee Chevrolet Camaro at Compass Point Singapore

Low Ee Mien — Fri, 18 Sep 2009 05:46:09 -0700

I spotted a Transformers Bumblebee look-alike of the 2009/2010 Chevrolet Camaro at Compass Point Mall (Singapore) today after work. It is of the concept model from the first Transformers movie, as can be seen from the bumper design. So the first thing I did on seeing that was to go back home and change into my TF.sg Autobot T-shirt, get the kids and my Canon SX1IS camera to take some photos. See the entire album here.

China car sales jump 71% in Jul 2009, to surpass US as largest auto market

Low Ee Mien — Thu, 17 Sep 2009 04:08:49 -0700

bloomberg.com :

Automakers and investors are focusing on China as it withstands the global recession. Chinese sales of cars, sport-utility vehicles and other passenger vehicles jumped 71% in July 2009. China's vehicle sales may rise 28% this year, likely enough for the country to surpass the US as the world's largest auto market.

China's full-year car sales may reach as high as 12 million vehicles. Meanwhile, US sales have slumped 28%, pushing GM and Chrysler into bankruptcy. US sales will likely be around 10.5 million, according to General Motors and Ford. In the US, the government's "cash for clunkers" rebates helped cause a 1% increase in auto sales last month, the first gain since 2007.

- There seems to be some kind of odd symmetry at work here. China car sales are set to go up 28% for the year while at the same time US car sales slump 28%. The big surprise is the jump in China's July 2009 vehicle sales figures which have surged an astonishing 71%, dwarfing India's own 26% rise which is already pretty significant in its own right.

Now it remains to be seen how much of it is due to the governments of the respective Asian countries pumping money into the system, and how much of it is actually due to the rise of the proverbial Asian consumer. It all kind of reminds me of the endless arguments over whether crude oil prices are driven by speculators and traders, or by actual demand and supply.

India industrial production output rise continued in Jul 2009 for 7th straight month

Low Ee Mien — Sat, 12 Sep 2009 17:25:26 -0700

channelnewsasia.com :

India's industrial production output climbed for a seventh month in a row, rising 6.8% in Jul 2009 from a year earlier, driven by strong consumer demand, fuelling hopes of an economic rebound. India's strong industrial output may help offset the economic impact of poor monsoon rains that have hurt crops. Manufacturing which is 80% of industrial output also grew 6.8%. The rise was driven by inventory re-building and a pick-up in consumer demand.

Analysts said the data signalled the emergence of India's economy, Asia's third-largest, from the global downturn, albeit at a slower rate than China which grew 7.9% in the same period. India's growth has fallen from the 9% levels it clocked during previous years, as a result of the global economic recession. But recent data such as passenger car sales which jumped nearly 26% in Aug 2009 from a year earlier has spurred expectations that India's economy could pick up pace.

- So the proverbial green shoots are taking root in India as well as China, along with many other places around the world. The last statistic is also highly interesting, with the rise of 26% in Indian car sales. This jump, along with the even bigger 47% jump in China car sales, possibly signals the much-heralded rise of the domestic consumer in the emerging Asian economies of India and China.

Singapore opens largest CNG refuelling station in the world

Low Ee Mien — Fri, 11 Sep 2009 16:35:57 -0700

channelnewsasia.com :

The world's largest CNG refuelling station - spanning over 7,000 square metres [75,000 square feet] - has opened in Singapore. It has 44 pump hoses for cars and 2 for buses, and is open 24 hours. This should address the problem of insufficient refuelling stations that users have complained about. The S$16m C-nergy station, the 5th CNG station in Singapore, is owned by the Union Energy Group. C-nergy is the brainchild of Teo Kiang Ang, who also runs TransCab, Singapore's second largest taxi company. Mr Teo plans to open 3 more CNG stations - in Bedok/Changi, Woodlands and Toa Payoh - within the next 3 years.

There are 4,200 CNG vehicles, 1/3 of them taxis, out of over 700,000 vehicles in Singapore. Still, users are hampered by a Catch-22 situation. Drivers are reluctant to switch to CNG despite the green tax rebate, because there are not enough CNG stations. CNG refuellers say they are reluctant to spend millions to build CNG stations because there are not enough CNG vehicles. But as oil prices increase and relatively cheaper CNG becomes more easily available, Mr Teo expects more to switch to CNG vehicles.

- It is probably a good (or at least slighty better) thing from an environmental point of view for more to switch to CNG vehicles, since vehicles which run on CNG, or compressed natural gas, have slightly less emissions than conventional petrol vehicles. Still, my contention remains that CNG is still natural gas, and natural gas is still a fossil fuel, as prone to depletion as any fossil fuel is.

Big-picture wise, using CNG, and consequently importing LNG, is at best an interim solution, which my earlier post has explained in greater detail. From a longer term point of view, my money remains on hybrid vehicles, followed by electric cars, and as for the source of energy, nuclear power, followed, eventually, by space solar.

How to set Lotus Notes 8.5 client proxy server settings to view images in emails

Low Ee Mien — Fri, 11 Sep 2009 05:18:31 -0700

via smokey.rhs.com :

The default Lotus Notes installation may not have had the proxy settings set. To set the proxy server settings for your Lotus Notes 8.5 client to enable displaying of images in emails, particularly if you are behind a corporate firewall :

1. Go to File, Preferences, Locations
2. Select Office (Network) which is probably the default, and click Edit
3. Under the Basics tab, click on the "propellor head" icon to go to the Proxy Configuration page
4. Enter <your proxy server address> for proxy address
5. Enter <your proxy server port> for port
6. Check "Use same proxy for all the above"

Other tech tips as follows :

1. How to insert currency exchange rates into Google Spreadsheets
2. How to insert images/pictures/photos into Gmail

How to minimize Lotus Notes 8.5 client to the system tray

Low Ee Mien — Thu, 10 Sep 2009 23:37:57 -0700

The Lotus Notes client, whether 8.0, 8.5 or other versions, usually sits on the taskbar taking up valuable screen real estate. Surprisingly, despite years of development and a wholesale re-write and port over to the Java-based Eclipse platform, there is still no option to minimize to the Windows (XP or other) system tray, a feature missing since the days of the old 6.5 client.

To minimize your Lotus Notes 8.5 client (or other version) to the system tray :

1. Download and install the TrayIt! utility (alternative link) which enables you to minimize any application to system tray.

2. Put the Lotus notes client in the system tray by keeping down the button when minimizing the window.

3. To always keep the window in the system tray when minimized, right-click on the system tray icon and check "Place in System Tray".

Other tech tips as follows :

1. How to insert currency exchange rates into Google Spreadsheets
2. How to insert images/pictures/photos into Gmail

How to disable/remove Lotus Notes client 8.5 Sametime icon from the system tray

Low Ee Mien — Wed, 9 Sep 2009 22:32:26 -0700

via lotus.com :

To remove the Sametime icon from the system tray when your Lotus Notes 8.5 client is launched :

1. Edit the plugin_customization.ini file in Notes :
at c:\Program Files\lotus\notes\framework\rcp\plugin_customization.ini
or c:\notes\framework\rcp\plugin_customization.ini

2. Add the following line:
com.ibm.collaboration.realtime.application/useSystemTray=false

Other tech tips as follows :

1. How to insert currency exchange rates into Google Spreadsheets
2. How to insert images/pictures/photos into Gmail

Gold prices rise above $1000 level on overwhelming momentum

Low Ee Mien — Tue, 8 Sep 2009 05:33:58 -0700

news.yahoo.com :

Gold prices powered through the $1,000 per ounce psychological barrier on Tuesday [8 Sep 2009], carried by a wave of pent-up technical momentum and dollar weakness, with some analysts eyeing last year's record high at $1,030.80. US COMEX gold futures for Dec 2009 delivery rose to $1,009.4. Gold prices have now made 3 attempts to rise and stay above $1,000. The market stayed above the key level for 1 day in Feb 2009 and 3 days in March 2008, when the record gold price of $1,030.80 was hit. Meanwhile, silver prices hit a 13-month high of $16.81 per ounce, and crude oil prices rose above $69 per barrel on NYMEX.

- Near-vertical rises may be awe-inspiring and all that, but someone like myself with a contrarian mindset always tends to get nervous whenever something like that happens. I will be more convinced if it can hold that key $1000 level and test it successfully as a support level, say for a week or two. If not, then it's just the proverbial flash in the pan.

The verdict will continue to be technically-driven momentum until proven otherwise. Of course, from a TA point of view, if it could test and maintain this critical level, we could draw a one-and-a-half-year line from Mar 2008 through to Sep 2009 and call it strong support. Let's see if that comes to pass.

Advanced Technology Investment Company (ATIC) of Abu Dhabi to buy Chartered Semiconductor for US$3.9 billion

Low Ee Mien — Mon, 7 Sep 2009 22:06:24 -0700

channelnewsasia.com :

An Abu Dhabi investment firm has offered to buy Singapore's Chartered Semiconductor for US$3.9 billion, which would create one of the world's largest microchip makers. The buyout by Advanced Technology Investment Company (ATIC) comes as chip companies worldwide look to boost sales after being hit hard by the global recession. Chartered is the world's third biggest maker of custom chips, but it has been struggling to catch up with leaders TSMC and UMC of Taiwan.

ATIC is also the main shareholder in Globalfoundries, a joint venture with AMD. ATIC chief executive Ibrahim Ajami said the combined Chartered and Globalfoundries would make them number two in the world, behind TSMC in terms of capacity. ATIC, which is owned by the Abu Dhabi government, wants to buy each Chartered ordinary share at S$2.68 in cash. Singapore's Temasek Holdings, which owns about 62% of Chartered, has thrown its support behind the deal.

- So it looks like Temasek might finally be handing over its "problem child" (not my words) to someone else. The semiconductor chip business is a fast-paced industry, with expensive high-tech equipment that keeps getting obsolete every few months, where margins are razor-thin, where volume is king and the customers fickle, where the smallest mistakes may lead to millions of dollars of damage and lost sales. It's hard to keep ahead of the changing technological landscape with chip features getting ever smaller and the challenges getting ever greater.

It looked to outside observers that Chartered fumbled somewhat in the transition from 90nm to 65nm technology and then from 65nm to 45nm. It's probably a good thing that Temasek is selling off the company to somebody who has deeper pockets (petrodollars) and hopefully better management, who may be able to better pull this off in the long run.

Hong Kong recalls gold reserves from London, opens gold repository at Chek Lap Kok airport

Low Ee Mien — Thu, 3 Sep 2009 16:04:11 -0700

doomers.us -> marketwatch.com :

Hong Kong is pulling all its physical gold holdings from depositories in London, transferring them to a high-security depository newly built at the city's airport. The 3,660-square-foot depository at Hong Kong's main Chek Lap Kok Airport will serve as a "storage facility for local and overseas government institutions". The facility would support Hong Kong's emergence as a Swiss-style trading hub for bullion and would lessen London's status as a key settlement-and-storage center.

The Hong Kong Monetary Authority will transfer its gold reserves stored in other vaults to the depository later this year. The monetary authority reported $63 million in physical gold reserves as of July 31. The Hong Kong Mercantile Exchange had signed an agreement to use the depository for its physical settlement and storage needs. Efforts will also be made to reach out to commodity exchanges, banks, refiners and precious metals and gold ETF providers.

- A smart and timely move by the Hong Kong authorities. Talk on the street in recent weeks has been rather critical of certain gold custodians, the uncertainty of having gold reserves stored with distant third parties and so on. And now with gold prices moving up again towards the critical $1000 level, it looks like government authorities, central banks, fund managers and some individual investors are starting to take action to secure their gold holdings.

Honda to reassign 400 F1 R&D engineers to improve fuel efficiency of hybrid cars

Low Ee Mien — Thu, 3 Sep 2009 03:27:15 -0700

bloomberg.com :

Honda's withdrawal from Formula 1 racing in Dec 2008 to save money may give it an advantage over rivals: fresh blood from an elite cadre of R&D engineers to improve its Honda Civic and Odyssey models. Honda reassigned the racing team's 400 engineers to develop new technologies to improve fuel efficiency and emission levels for mass-produced cars. An advanced regenerative brake system is being tested for possible use in Honda's hybrid cars. Racing has trained the engineers to acknowledge what works and what doesn't. Those competitive instincts are now redirected toward building cars to outsell rivals.

Honda quit F1 racing to cut costs as auto sales plunged amid the global recession. Teams using Honda's engines have won 69 races out of 151. Toyota, which started Formula One racing in 2002, has never won. The move may take Honda past Toyota in overall efficiency, as Honda expands its hybrid lineup with the 2010 Honda CR-Z sports coupe and the 2010 Honda Fit hybrid. Toyota plans to lease plug-in hybrid cars next year and plans to sell an electric car in 2012, and the 2010 Nissan Leaf electric car was announced recently.

- This is a great move by Honda. I'm just surprised that they had so many R&D engineers dedicated to the F1 racing team. 400! That is a tremendous amount of talent, not to mention the cost that Honda must have been incurring when it was sponsoring the racing side of things. And now with Toyota, Nissan, and Mazda announcing either electric cars or plug-in hybrids of their own, the competition for the next generation of cars is getting hotter by the day. So it looks like they've got their work cut out for them. They've got 2 or 3 years, maybe less, to get something out the door quickly. Let's see what they come up with.

NYMEX crude oil prices fall under $70 after China stock plunge

Low Ee Mien — Mon, 31 Aug 2009 16:16:01 -0700

channelnewsasia.com :

Crude oil prices fell under $70 a barrel level on Monday [31 Aug 2009] after a stock market plunge in China sent jitters across world markets about prospects for global economic recovery. NYMEX light sweet crude for Oct 2009 delivery closed at $69.96. Oil prices see-sawed last week, hitting $75 per barrel for the first time in 10 months before falling sharply. On Thursday prices briefly dipped below $70 dollars then bounced back.

Markets were concerned over the sharpness of the fall in the Shanghai stock market. Shares in the Shanghai exchange dived 6.74% - its biggest loss in 14 months. The slowdown in lending, some feared, may derail recovery in China, which has been driving rapid economic growth, and impact demand for oil. The market has been anticipating higher oil demand in Asia, which many feel could drive global economic recovery from the worst recession in decades.

- The old economic shivers are back, so much for the green shoots talk. And with oil prices apparently trying to do a 1:1 correlation with the stock markets (not really, but sometimes it might seem that way), it's getting harder for traders to talk about fundamentals during periods like this, instead leaving the technicals to do the talking (and trading).

And talking about technicals, NYMEX crude oil prices are currently testing the lower limits of the roughly $70 to $75 trading range that they have been in for the whole of August 2009. The cyclic indicators including RSI and stochs are in mid-range, while the 50-/200-dma crossover is still in effect until proven otherwise. The 200-dma, meanwhile, stands at $54.93.

Translation : we've probably got quite a bit further to muddle through during this period of consolidation, unless $55 support is broken which doesn't look likely at this stage.

Canadian Solar to build 500-megawatt solar power plant in China

Low Ee Mien — Sun, 30 Aug 2009 22:45:02 -0700

news.cnet.com :

Canadian Solar has been granted rights to develop a 500-megawatt solar power plant in Baotou, Inner Mongolia, China, the company announced Wednesday [26 Aug 2009]. Baotou is a manufacturing city on the Yellow River in Inner Mongolia with a population of over 2 million. The signed agreement includes rights "to design, install, operate, and maintain" the solar power plant in Baotou. In October 2008, the US Army announced plans to build a 500-megawatt solar thermal power plant in Fort Irwin, California in an effort to reduce its annual energy costs. Canadian Solar, while founded in Canada, has subsidiaries in China that already manufacture both solar cells and solar panels.

- 500MW worth of solar power sounds like a massive installation, and on a surface area basis it most likely will be. But we're also just as likely talking about "nameplate capacity" here, which given the effective capacity or load factor of solar power being typically not much better than 20%, we're probably looking at an average of just around 100MW.

Not bad, just that even at this scale it still does not quite approach conventional fossil-based power plants or nuclear power plants which generate 700-1500MW or more with a load factor of 80-90% or better. Still, with China's built-in advantages including labour and material costs, land area and environmental factors, it just might be the right place to try to pull off something like this.

Palm oil : RSPO group pushes for environment-friendly standards

Low Ee Mien — Thu, 27 Aug 2009 06:38:59 -0700

features.csmonitor.com :

Palm oil : companies can't get enough of the "golden plant" grown in Indonesia and Malaysia to keep up with demand. So plantations are burning and clearing rain forests - often illegally - to plant more palm trees. Clearing the jungle belches carbon into the air and is pushing orangutans to extinction. Now, a Malaysian-based network is pushing to end the destruction by adopting more eco-friendly standards. The RSPO (Roundtable on Sustainable Palm Oil) has signed up corporations such as Unilever, Johnson & Johnson, Nestle, Colgate-Palmolive, Cargill, The Body Shop, and Cadbury. The RSPO certified its first "green" batches a year ago, and now accounts for 1.4 million tons, or 3% of the world supply of crude palm oil.

It represents a first step in a very long journey for the prized vegetable oil that appears all over supermarket shelves - in detergent, soap, cooking oil, bread, candy bars, cosmetics - and, increasingly, in biofuels. There are plenty of gaps in enforcement of the new standards, however. Sustainable plantations don't produce much yet. The global appetite is so voracious that some brands mix "good" palm oil with "bad." A single chocolate bar, for instance, might contain oil from a compliant plantation and one that's not.

- Palm oil. Peakoilers are well aware that it is an incredibly useful substance, and yet at the same time it is an increasing problem : Haze and burnt forests. Questionable EROEI (Energy Return on Energy Invested). Food vs fuel.

This RSPO thing. It sounds like a good idea, and I'm glad that they at least try.

But we need to do a bit more than that.

We need to recognize that biodiesels as a whole, with energy return ratios barely over the breakeven point of 1.00, and arguably many of them don't even make 1.00, aren't a terribly bright idea. We need to recognize that food for people should take precedence over fuel for cars. We need to recognize that, the energy we use worldwide every year is equivalent to over 400 years of total worldwide plant and animal growth. We need to recognize that, well, we need to find a better way. Biofuels are not the answer. They never have been the answer.

Singapore petrol prices increased by 5 cents, up in third rise in a month

Low Ee Mien — Tue, 25 Aug 2009 16:11:39 -0700

This article belongs to the Singapore inflation watch story arc.

channelnewsasia.com :

Singapore petrol pump prices are up again on Tuesday [25 Aug 2009], for the third time in a month. At Caltex and ExxonMobil, prices of petrol and diesel were raised by 5 cents a litre. Premium 95 grade now stands at S$1.867 a litre, while the price of diesel is up at S$1.343 and the price of Premium 98 has now hit S$2. The move was partly attributed to crude oil prices which have been on an uptrend in the past month.

- Uptrend? Oh yes. In the shorter term crude oil prices have been trading in a $70-75 consolidation pattern, but it has been up from below $60 in the past month to over $70 now. Zooming out to an even longer-term historical crude oil chart, you can see a recovery from the $32 level since Dec 2008.

As for the "partly attributed" portion, it should be noted that, despite the chunk of tax that the government collects (40 cents per litre), the price moves are mostly due to crude oil price movements, and as I have written earlier, downstream profits at the retail side of things are usually relatively thin in the overall scheme of things. We'll just have to see how the current consolidation pattern works out before a clearer picture emerges for crude and hence petrol prices in the near-term future.

See also :

NYMEX crude oil prices hit $75 resistance level

Low Ee Mien — Mon, 24 Aug 2009 07:23:14 -0700

Heads up. Crude oil prices on NYMEX have just hit the fabled $75 resistance level. In fact nymex.com itself went down momentarily, probably overloaded by excited onlookers. It's now back up. This is a key resistance level that I have been talking about. Let's see how it goes from here.

NYMEX crude oil prices jump to 2009 high above $74

Low Ee Mien — Sun, 23 Aug 2009 22:40:16 -0700

channelnewsasia.com :

NYMEX crude oil prices jumped on Friday [21 Aug 2009] to a 2009 high above $74, propelled by a weak US dollar, tumbling American crude reserves, rising equities and positive eurozone data. New York's main futures contract, light sweet crude oil for delivery in Oct 2009, closed at $73.89 per barrel, after soaring to $74.72 dollars - a level last seen on 20 Oct 2008.

The EUR/USD euro forex rate leapt as high as $1.4376 after a key purchasing managers index improved to the break-even point in August after a long contraction, a sign of a stabilizing eurozone economy. Crude oil (live oil prices) spiked on Wednesday after the US DoE said American inventories of crude fell a massive 8.4 million barrels last week, indicating that demand was recovering. Oil prices had hit an all-time record high of $147.27 in Jul 2008 before collapsing to $32 in Dec 2008 due to weak energy demand arising from the effects of the world financial crisis. The market has since clawed back ground on hopes of economic recovery.

- Like I said earlier, while the 50-/200-dma crossover remains valid, crude oil prices will probably enter a consolidation period between $70-75. Fresh probes may be launched at the $75 resistance level from to time. Unless the momentum crowd suddenly goes wild and decides to make a big run at the barrier all at the same time, it will take some kind of trigger event to break through $75.

Unless you are an extremely short-term-oriented day trader, it can be frustrating sitting still during consolidation periods. And in times like these, it might do one some good to recall the words of legendary speculator Jesse Livermore : "It's not the thinking that makes the money; it's the sitting."

NYMEX crude oil prices ease after surge to $73.24

Low Ee Mien — Thu, 20 Aug 2009 23:06:05 -0700

in.reuters.com :

NYMEX crude oil prices eased below $73 per barrel on Friday [21 Aug 2009], reversing an earlier surge to a 7-week high. Data on Wednesday from the EIA showed a surprise 8.4 million barrel plunge in weekly US crude inventories had buoyed sentiment. But oil's surge proved short-lived as consensus grew that this was due to a fall in imports rather than a rebound in US fuel demand.

The new NYMEX front month contract for Oct 2009 delivery was down at $72.77 a barrel (live oil prices), off a high of $73.24 earlier. Oil is on track for a 7.8% gain this week. So far, US economic signals have been mixed, with few signs of recovering fuel demand. US stocks rose for a third session after manufacturing data and a rebound in Chinese stocks reassured investors. Without a sharp slide in crude oil prices, OPEC is likely to leave its output targets unchanged when it meets on 9 Sep 2009.

- In the short term, the $75 resistance level looks like a tough one to crack, especially with economic indicators being as mixed as they are, demand is not exactly going to take off any time soon. On the supply side, we've got OPEC maintaining a steady course and no outsized supply or geopolitical disruptions so far.

So what's left is to look at forex rates, the US dollar and specifically the USDX, where it remains in a trading range between 78-79, apparent double-top formation notwithstanding. Remember, a technical formation is only a formation when completed. Besides, with the Sep 2009 NYMEX crude oil contact having just expired and being rolled over to the Oct 2009 contract, barring some trigger event, one could expect a consolidation period between $70 to $75 in the meantime.

Singapore property market recovery seen as private home sales surge 52% in Jul 2009

Low Ee Mien — Mon, 17 Aug 2009 05:45:33 -0700

channelnewsasia.com :

Sales of private homes hit a new high in July 2009, surging 52% from June, surprising most analysts. Market watchers said an element of speculation could be involved although a significant portion of the sales was backed by real demand. Most analysts expect full-year sales to exceed the record 14,811 sold in 2007 when prices went up almost 40%.

Analysts said low interest rates, relatively lower prices and the fear of missing the bottom, are some reasons for the strong sales. Buyers are also generally more optimistic about the outlook for the Singapore economy. The mass-market segment was the star performer, but luxury home sales remained stagnant with no units above S$3,500 per square foot being sold. Despite the strong demand, analysts said prices are unlikely to go up significantly.

- Depending on who you talk to, the Singapore housing market looks either sunny with looming clouds over the horizon, or it looks sunny all the way to Sunday (and beyond). Actually this round I am siding with the bulls for now as a number of positive factors including the so-called green shoots recovery in the US and Japan carries over here with the usual lag period, and add to that the opening of the Marina Sands IR (Integrated Resort) now slated for early 2010 should liven things up a bit at least through Q1 2009. After that what happens next is of course anybody's guess, and of course barring a repeat of Q3 2008, the Singapore property market would probably be running fine for a while.

V-KOOL solar film specifications updated

Low Ee Mien — Thu, 13 Aug 2009 06:10:37 -0700

There have been some updates for 2008/2009 onward to the V-KOOL solar film specifications since my earlier Mar 2007 post. The J83 film remains the same for the front sides, while the front windscreen is now using the X75 film, and the rear sides and rear windscreen are now using the V-KOOL 70 film. The V-KOOL 70 package (upgraded from the basic Eurospec) that I took for my current Honda Civic Hybrid now consists of the following :

Front windscreen : X75 (updated)
Visible Light Transmission (VLT) - 77%
Infra-Red (IR/Heat) Rejection - 77%
Ultra-Violet (UV) Rejection - 99%
Total solar energy rejection - 46%

Front sides : J83 (same)
Visible Light Transmission (VLT) - 83%
Infra-Red (IR/Heat) Rejection - 57%
Ultra-Violet (UV) Rejection - 99.5%
Total solar energy rejection - 31%

Rear sides and rear windscreen : V-KOOL 70 (updated)
Visible Light Transmission (VLT) - 73%
Infra-Red (IR/Heat) Rejection - 94%
Ultra-Violet (UV) Rejection - 99%
Total solar energy rejection - 55%

- Pretty good numbers, especially with the X75 film for the front windscreen a bump up from the earlier specs and the V-KOOL 70 for the rear windscreen on par with the earlier Mystique package specs but with much better light transmission, and more acceptable to users like myself who prefer the "all-round clear" look.

Excellent service at V-KOOL Singapore

Low Ee Mien — Thu, 13 Aug 2009 05:07:24 -0700

Just back today after sending my car back to V-KOOL Singapore to remedy a very slight defect. I had been ignoring it but all the while Biow had been complaining about it as it was more visible from the passenger side but only at certain angles. After assessment, they replaced the entire V-KOOL solar film for my front windscreen at no charge.

Excellent service, very professional. I've gone to the same V-KOOL outlet at Sin Ming for both my conventional and hybrid Civic editions, and I intend to go back to them for *ahem* future editions. I've also recommended friends and colleagues, including fellow blogger Yen Kai. Highly recommended for both their technology and professional service.

PS : There have been some updates to the V-KOOL solar film specifications since my earlier Mar 2007 post. For the V-KOOL 70 upgrade package that I took, the J83 film remains the same for the front sides, while the front windscreen is now using the X75 film, and the rear sides and rear windscreen are now using the V-KOOL 70 film.

2015 Lamborghini Gallardo hybrid super-car disclosed by CEO in magazine interview

Low Ee Mien — Tue, 11 Aug 2009 07:22:25 -0700

Scattered reports around the web suggest that there may be a possible upcoming 2015 Lamborghini Gallardo hybrid super-car that was disclosed by the Lamborghini CEO in a recent German magazine interview :

peakoil.com -> forecastfortomorrow.com :

Lamborghini is jumping on the hybrid wagon by announcing that the Gallardo would be available in hybrid form in 2015 ... at slow speed, the electric engine will take over (traffic, city ...) and the gas engine will be used in more demanding situations. Lamborghini CEO Stephan Winkelmann confirmed that his company would not produce an all-electric car at the moment without saying why. Ferrari has already announced a hybrid model, scheduled to appear in 2015 as well.

nextautos.com :

In a recent interview with the German Magazine Automobilewoche, Lamborghini CEO Stephan Winkelmann said that Lamborghini is planning to launch a hybrid Gallardo ... he stated that the new hybrid will consist of a small electric motor for slow moving urban traffic but will switch to its V-10 or V-12 engine when on the open road.

- Apparently Lamborghini is trying to jump on to the hybrid bandwagon without *really* jumping on. As described, this is an either/or electric-car / sports super-car. As in, the electric part is entirely wasted at cruising speeds on the highway, with the motor and batteries being dead weight, whilst the gasoline motor is conversely a dead weight in the Prius-like city/stealth electric mode. An odd beast certainly. I wonder how the hybrid fan community will classify this one - not quite a Type II hybrid and not quite a Type III hybrid. Let's see how it turns out if/when they do release it.