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About Petroleum Products

2019-02-24T11:03:00.000+00:00

Petroleum (from Greek: petra: "rock" and oleum: "oil") is a naturally occurring, yellow-black liquid found in geological formations beneath the Earth's surface, which is commonly refined into various types of fuels. Components of petroleum are separated using a technique called fractional distillation.

It consists of hydrocarbons of various molecular weights and other organic compounds. The name petroleum covers both naturally occurring unprocessed crude oil and petroleum products that are made up of refined crude oil. A fossil fuel, petroleum is formed when large quantities of dead organisms, usually zooplankton and algae, are buried underneath sedimentary rock and subjected to both intense heat and pressure.

Petroleum has mostly been recovered by oil drilling (natural petroleum springs are rare). Drilling is carried out after studies of structural geology (at the reservoir scale), sedimentary basin analysis, and reservoir characterization (mainly in terms of the porosity and permeability of geologic reservoir structures) have been completed. It is refined and separated, most easily by distillation, into a large number of consumer products, from gasoline (petrol) and kerosene to asphalt and chemical reagents used to make plastics and pharmaceuticals. Petroleum is used in manufacturing a wide variety of materials, and it is estimated that the world consumes about 95 million barrels each day.

Concern over the depletion of the earth's finite reserves of oil, and the effect this would have on a society dependent on it, is a concept known as peak oil. The use of fossil fuels, such as petroleum will have a negative impact on Earth's biosphere, damaging ecosystems through events such as oil spills and releasing a range of pollutants into the air including ground-level ozone and sulfur dioxide from sulfur impurities in fossil fuels. The burning of fossil fuels plays the major role in the current episode of global warming.

U S May Join Opec. 1/4 Of World's Untapped Oil Reserves In Artic

2018-04-19T18:53:00.000+00:00

Recent exploration of sediment deep beneath the Artic Ocean has led geologists to estimate that approximately 1/4 of the world's untapped oil and gas reserves are located there. After evaluating the impact of the news, the U. S. may seek membership in OPEC.

President Bush, smiling and joking with King Abdullah of Saudi Arabia at a press briefing in Nome, Alaska, stated, "Since it looks like we've got about as much oil off Alaska as our good friend the King here has in the Saudi desert, it seems like a pretty good idea for America to consider membership in OPEC. The least you can say is, maybe then we'll have more influence on prices at the pump".

King Abdullah, who flew in to tour the newly oil-rich region with President Bush and Vice President Cheney, commented, "Until now, I thought a country had to have a lot of sand to have oil. Now, I see it can also have a lot of snow. If America wants to join OPEC, we will be very happy to consider the application. But, of course, we only have one vote". Crude Oil Brokers website.

Reaction across the Middle East was not unmixed, even in Saudi Arabia. A member of the nation's delegation to OPEC, speaking on condition of anonymity so he could remain in the employ of the King, cited Allah's usual ways to man in terms of the oil trade, saying, "The eternal wisdom of Allah has provided that no part of the world is able to have more oil than Saudi Arabia. But our King likes to visit George Bush at his ranch in Crawford or wherever he is, so if we see enough gushers blacken the Artic Ocean, I suppose we will bring ourselves to consider U. S. membership".

The Iranian representative was, expectedly, evasive while definite. "If the U. S. wants to join OPEC, we may say no or yes, never or maybe, later or now. There is, of course, more likelihood that we will say yes or maybe sooner if the U. S. agrees that our proud and progressive Islamic nation has the right to develop nuclear weapons for peaceful purposes".

When asked about possible opposition to U. S. membership in OPEC, President Bush made no maybes about his intentions, turning to the King first, and saying, "Excuse me for saying this, but you how I'm always forthright". Then he turned to the reporter, and stated, "We have a backup plan. If the other nations who control OPEC vote against American membership, we intend to form an oil cartel with Canada, which, like our own state of Alaska, borders on the Artic Ocean. Greenland, which also has a presence there, has indicated interest in the cartel, which, by the way, we've given the working name of APEC, with the "A" standing for "Artic". I also plan to invite Russia, which, as you know, borders on the other side of the Artic Ocean, to consider the benefits of membership in APEC.”

Vice President Cheney, flashing his usual fleeting acidic smile at the King, took his turn at the skillful conduct of international relations, adding, "It's quite a relief to know we've got as much oil up north as we do, and frankly, I kind of like the idea of APEC. So just let me say that, with all due deference to the King, the choice for OPEC is clear. It's their cartel or ours".

Environmentalists were widely distressed. A leading researcher of the multinational team that extracted the deep cores which indicated the vast reserves said, "It's disheartening to think that our discovery of how much oil and gas lie under the Artic has led to a desire to extract it. I would have thought everyone would just appreciate the wisdom of leaving it there. Now, I shudder to think how much the combustion of the reserves will contribute to global warming, which, unfortunately, will make it even easier to pump out the oil, since there won't be any ice left to get in the way".

Eskimos generally applauded the news, with many expressing an eagerness to trade in their traditional garb for Arabian dress. One Eskimo confided, "If you want to know the truth, I like global warming. We’ve had it cold long enough".

Everyday Americans at the pump were ecstatic about the prospects of a domestic oil glut. "Wow, just think", an American SUV driver, who was at a gas station pumping out his wallet, said, "if the U. S. is part of OPEC or forms its own cartel, I might even be able to keep my gas guzzler".

Achieving Success In Oil And Natural Gas Investing

2016-04-17T19:42:00.000+00:00

Investments in oil & gas private placements, or direct participation projects should only be made by investors who understand, or learn how to implement a deliberate plan to minimise risk, while clearly understanding a likely, and reasonable risk/reward ratio...investors need to accept the over-all risk they must take to achieve the upside necessary to justify taking the risk in the first place.

Investing in oil & gas projects usually takes a check-list approach in my view. Investors should realize that almost all oil & gas development operations involve technical challenges. Deals take time to develop and come to fruition, actually, often up to two years before significant pay-back of capital is possible.

Oil & Gas investing is not for investors who don't need the tax advantages, or who simply think they are going to get steady, and fixed rates of return each month immediately after they first start investing. The only exception that I know of is when you find an oil and gas investment which is nearly fully funded already, and is one which is beginning to achieve some level of success when you find it. Crude Oil Brokers.

Spreading-out your capital in multiple well drilling programs with people who control, or operate their own deals makes more sense to me than trusting a promotional company who wants to test a new drilling location with your money.

Investing in the Stock market where you get liquidity with public stocks on the larger exchanges, and your principal is typically safer is a better place to start when considering oil & gas investing.

Specialty Motor Oil Protects Cars From Ethanol

2016-04-15T20:03:00.000+00:00

Since President Bush announced an agenda for weaning the country from dependency on foreign oil, new ethanol plants have been popping up across the nation.

Ethanol demand is rising. If you fuel your car in the U.S., you are putting ethanol in your gas tank because regular gasoline now contains at least 10 percent ethanol. And many gas stations are replacing their mid-grade gasoline with E85, which is 85 percent ethanol.

The strategy seems to be working. According to Bob Dinneen, president of the Renewable Fuels Association, the U.S. has already reduced its fuel consumption considerably.

The increased use of ethanol is good news in terms of energy independence and environmental friendliness. However, its use can form acids and lead to oxidation of internal engine parts if you do not use the right motor oil. Crude Oil Brokers website.

Lubrilon, a specialty automotive oil, was specifically formulated for use with all ethanol-blended fuels. Lubrilon multi-viscosity motor oils are SAE and API licensed for use in all gasoline engines, and are engineered to help combat the acids formed when burning any modern ethanol fuel blend, including gasoline and E85.

While the name Lubrilon may be new to the average consumer, it is recognized by specialty shops, racing fans and aircraft mechanics across the U.S. Throughout its 30-year history, the Lubrilon name has been known for its lubrication products for the automotive, racing and aviation industries.

The original formula, an engine protection treatment, is still available today. That formula has been determined by university and government testing laboratories to be a one-time, permanent engine protection that virtually eliminates wear. It's the only product of its kind on the market.

Grease And Oil On Your Car's Interior

2016-04-13T20:23:00.000+00:00

We all know the properties of oil and grease. They can really stick on anything and could become quite a mess. They are very slick and oily. Aside from these, they could prove to be quite a challenge to remove.

Much as you keep your car's interior immaculate and clean, accidents do happen. You could step on oil or grease that may have leaked from other vehicles. And when you do, you could bring it in your car’s cabin without you knowing it. Well, only until you notice that oil or grease stain on your carpet – or even on the fabrics in your car. Too bad.

One of the easiest ways of removing these grease or oil stains from your car's interior is by replacing the oiled-up or greased-up parts with new parts for Jaguar XJ6. But that could prove to be quite expensive on your end when you can simply remove the stain yourself by simply using some muscles and working up a little sweat.

If you got grease or oil in the fabrics of your car, you should first blot away any excess oil or grease, especially if these elements are still fresh on the fabrics. After blotting these out and there are still more, you can try scraping them away. On the same spot, put a cloth that is very absorbent and leave it there. Let the cloth absorb any more oil or grease. Come back after a few hours and this time, apply a laundry stain remover product to the area. This would remove the stain. And when you have successfully done so, sponge the stain remover away with warm water. Crude Oil Brokers website.

Remember that should be done only in fabrics. If you get oil or grease on your leather seats or any leather part of your cabin, do not attempt to clean it up or you just might only mess up the stain more. It is recommended that you bring it to a professional leather cleaner instead.

The seeming lockstep price of Crude Oil and the Morgan Stanley Capital International

2016-04-11T21:50:00.000+00:00

The seeming lockstep price of Crude Oil and the Morgan Stanley Capital International EAFE based TSP 401k.

A friend of mine at work got into the I fund (based on the Morgan Stanley Capital International EAFE) at the right time and rode it to some great profits. He said that as oil prices rose so did the I fund. Being a curious fellow I decided to take a look and an interesting pattern appeared.

I graphed the five funds available in the Thrift Savings Plan, 401k retirement plan.

The funds are:

- The C Fund is based on the S&P 500

- The F Fund is designed to match the bonds in the Lehman Brothers U.S. Aggregate (LBA) index.

- The G Fund invests in short-term U.S. treasuries

- The S Fund follows the Wilshire 4500 index

- The I Fund follows the EAFE index

I chose the start date of this graph as 5/1/2005. I chose this date for a reason. This was the start of the great price increase in oil last year. During this period, the C fund (based on the S&P 500) had a slow and steady rise. The S fund (based on the Wilshire 4500 index) had a greater rise but it was the I fund which almost seems to be in lock step with oil prices. When the price of NYMEX Light Sweet Crude rose, the I fund rose. When the price of NYMEX Light Sweet Crude fell, the I fund fell. There was not an exact percentage by percentage match but the pattern was unmistakable.

We know that the I fund, which is based on the Morgan Stanley Capital International EAFE does hold a portion of its assets in foreign oil companies including BP and Royal Dutch Petroleum. Could this explain the seeming link? Not in it’s entirely as there is too much not in oil to explain. Could it be that rising oil prices are seen as bad for the US and investments are following suit outside of the US? Perhaps but even so, the C and S fund did rise as well, though there is certainly oil money in there as well. Crude Oil Brokers website.

I am prone to lay low on stocks during the summer through Mid October but an active hurricane season threatening our domestic oil fields and refineries in the Gulf of Mexico combined with the ever present risk of unpleasantness in the Middle East, might just have me ready to hit the button on an allocation back into the I fund at a moments notice.

Where Did All the Oil Drilling Equipment and Well Service Equipment Go?

2012-04-09T23:19:00.000+00:00

The well drilling and servicing businesses have been very prosperous the last few years. The industry, although, has been marked by an extreme cyclical past that discouraged capital investment. It doesn't feel too good to have a multi-million dollar piece of equipment collecting weeds somewhere in a field. When oil began to rise a few years ago, demand for drilling came back and rotary giants came back. The interesting thing is that although equipment can come and go, what about people?

Many people who in the late 70's or early 80's had done well in the oil business saw there returns diminish over the next two decades. Talented people tend to be able to switch gears, therefore, many of them moved on to more profitable endeavours.

The average family oil business struggled for many years as oil prices languished. Funny, I don't recall hearing such outrage from politicians as has been witnessed lately. For the people that stuck it out and invested when times were bad, they are now reaping the benefits of the flip side... to punish them for risk taking is un-American.

Now that times are booming, it is not necessarily the equipment that is missing, but the human capital. People make things happen. I am sure many of them did not want to get back into oil just to see it languish again, so they waited it out. This has led to a lack of skilled labour in oilfields all over America. Human capital will always be more important than any piece of new equipment in the oilfield. Crude Oil Brokers website.

U.S. Ends Oil Dependency: Turns B.S. Into Fuel

2012-04-08T00:01:00.000+00:00

While America is experiencing a gasoline shortage, the nation's dependence on foreign oil is about to end.

A researcher at The Department of Energy, from which breakthrough ideas emanate on a regular basis, noticed that Americans, along with most people who ever lived, have a virtually unlimited and renewable supply of B. S. He wondered if it might be turned into fuel.

The hypothesis proved so promising that his work produced a marvellous result in as short a time as it took to record some B. S. from a wonderfully fertile colleague and wire it to a refinery. He calls the new potion Bio-Super.

"It's the most concentrated fuel in history", he tells us, "with an octane rating of 99.9. I figure we've got enough of a supply to meet our total energy needs for the foreseeable future. All we have to do is keep B. S.-ing the way we do, and we'll have all the Bio-Super we and our children need". Crude Oil Brokers website.

The product is ready for mass production. The technique calls for the collection of B. S. from all over the country by having the most irrepressible exponents of it talk into microphones. The B. S. is then broadcast to the closest refinery.

Bio-Super also has an advantage over other fuels in terms of pollution, because the process actually takes a lot of it out of the air.

Since the B. S. is so highly concentrated to begin with, the production of Bio-Super is quite a lot more efficient than the manufacture of biofuel from corn or woodchips. Just a hundred words of good old American B. S., particularly from people who like to hang out at bars after work and talk their heads off, can produce enough to fill up the gasoline tank on a Hummer.

The only negative aspect is the product's exceptional volatility. Once you pump it into your tank, you have to slam the gas cap shut instantly or it will all evaporate. Motorists are also advised only to remove the cap when the gauge is nearly on empty and to stand aside; otherwise, there is the risk of being knocked out with a force that scientists have calculated is equivalent to six airbags.

Credit Cards From Oil Companies Are No Bargain

2012-04-06T00:46:00.000+00:00

The number of consumers with oil company credit cards, good for gasoline purchases, has increased dramatically during the last ten years. The two main reasons for this growth are the general easing of qualifications for such cards and the growth of pay at the pump. It is simply much easier and faster to buy gasoline if all you have to do is stick a card in the pump, get your gas and drive away. Many Americans are all too happy to apply for another credit card if it means avoiding lines inside the gas station.

Gasoline is a recurring expense for most people. Anyone who drives to work each day will probably find that his or her gasoline expenses are about the same each month. Given that the monthly use is the same, gasoline purchases can be viewed in much the same way as a cable TV bill or an electrical bill. It is something that should be paid, in full, each and every month. If the bill isn't paid in full this month, it will only get larger next month. So paying promptly, and in full, makes a lot of sense.

But few Americans pay their bills in full each month, and for those who do not, a gas credit card comes with quite a shock. The interest rates charged by these credit cards are quite high when compared to other types of credit cards. In fact, these cards tend to have interest rates that range from 18-25%, when many banks will offer a Visa or Mastercard for a much lower rate. Someone with good credit can probably obtain such a card with an interest rate in the 10% range.

Anyone who pays for gas by credit card but does not pay in full each month would be advised to use an alternative credit card with a lower interest rate, if one is available. Gasoline pumps that accept credit cards will take usually accept most major credit cards, so using a Visa or Mastercard would generally make more sense than using a gas card. The Discover card is particularly useful for this purpose, as it provides a cash back rebate every year based on use. Crude Oil Brokers website.

Savvy consumers who wish to watch the amount of interest that they pay on their credit card bills would be wise to find an alternative to the high interest charged by most major oil companies. After all, there is no benefit to paying interest.

Oil Production May Be At Its Peak, Experts Say

2012-04-04T02:10:00.000+00:00

Anyone who has recently visited a gas station has felt the pinch of the impending oil crisis by having to pay more than $3 per gallon for gas. While most people understand that we are facing a worldwide shortage of one of our most precious commodities, the reasons behind the deficiency remain somewhat vague.

According to Mammoth Resource Partners, Inc., a Kentucky-based oil and gas exploration company, major media coverage has largely ignored the underlying reasons for the relentless march toward ever-higher oil and natural gas prices.

Experts report that the reasons are rooted not only in Middle East chaos and Asia's booming economies, but they also predict that it's in the possibility that the world's oil production may be peaking.

By definition, peak oil is the name geologists have given to a proven fact of oil exploration and development: When half of an oil field's reserves have been extracted, the field will begin to progressively yield less oil with every passing year until it yields zero.

"As peak is approached, what is left in the major fields is becoming harder to extract, reducing the growth of oil supply, thus increasing its price," said Dr. Roger L. Cory, President of Mammoth Resource Partners, Inc.

In short, the world has been consuming more oil while it has been drilling and extracting about the same amount of oil. These two trends cannot continue without some long-lasting effects.

"The supply and demand lines are crossing, leading to huge increases in the price of oil and oil-related petroleum products," Cory predicts. Crude Oil Brokers website.

Cory said there will always be oil in the ground, but the questions that producers need to ask themselves are, how hard will it be to get out, and thus how much will it cost? And how high will the going rate per barrel have to be to make it worth my while?

"We have recently seen crude sold for more than $70 per barrel. Is this a temporary price spike, or part of a major, permanent upward price trend?" Cory said. "It's anyone's guess how high the price of crude will go, but triple digits per barrel certainly do not seem out of the question."

Auto Repair: How Can They Screw Up An Oil Change

2012-04-02T03:14:00.000+00:00

"It's all about beating the clock". This quote comes from a wise old service manager, advising me on how to maximize my income as a flat-rate technician. If you have ever wondered why your car doesn't get fixed correctly, or all your concerns weren't addressed, you can blame, in part, the flat-rate pay structure.

Flat-rate simply means that your mechanic is paid a flat fee for a particular repair, regardless of how long the repair actually takes. In other words, if your car needs a water pump, which pays two hours of labor, and the mechanic completes the job in one hour, he gets paid for two.

In theory, this can work to your advantage. If the job takes longer, you still only pay the “predetermined” labor amount. In THEORY, not reality!

The flat-rate pay structure is designed to drive productivity. It's very effective. The flat-rate pay system encourages technicians to work hard and fast, but it does not promote quality. Crude Oil Brokers website.

In terms of getting your car fixed correctly, the flat-rate pay structure has disastrous effects. Flat-rate technicians are constantly looking for shortcuts to beat the clock in order to maximize the number of hours they bill. Experienced flat-rate technicians can bill anywhere from 16 to 50 hours in an 8 hour day.

It's these shortcuts and the breakneck speed at which flat rate technicians work that result in some of the most idiotic mistakes. In the rapid-fire pace of a shop I've witnessed technicians start engines with no oil. I've seen transmissions dropped, smashing into little pieces onto the shop floor. And I've seen cars driven right through bay doors—all in the name of “beating the clock.”

Flat-rate technicians can get quite elaborate with shortcuts. My favorite was the implementation of an 6-foot-long 2-by-4, which was placed under the engine for support while a motor mount was removed. It made a job predetermined to take 1.5 hours achievable in twenty minutes. A win-win, right? The technician makes extra money; you get your car back faster.

Actually, in many cases the placement of this 2-by-4 damaged the oil pan. Moreover, it caused the car, your car, to balance precariously 6 feet in the air, while the technician manipulated the car lift to access your engine mount.

This tactic was abruptly discontinued when a technician's 2-by-4 snapped causing the car to crash nose down onto the concrete floor.

Sometimes the shortcuts create very subtle disturbances, which create problems overtime. A quick example: a vehicle had its transmission serviced with a new filter, gasket, and fluid. During the procedure, the technician was able to save time by bending the transmission dipstick tube slightly, in order to get the transmission pan out faster. The vehicle was reassembled, and the technician re-bent the tube back into place and off it went—no worries….

Six months later, the vehicle returned with an intermittent misfire. The engine wasn't running on all cylinders. After extensive diagnostics, it was discovered that the transmission dipstick tube had chaffed through the engine harness, intermittently grounding out an injector. Hmm, that's strange. Don't usually see that.

The high-speed environment and the subsequent shortcuts illustrate the devastating effects of the flat-rate, sales-driven pay structure on the quality of car repairs.

No wonder even an oil change gets screwed up!

The poor quality of work encouraged by the flat rate pay structure is disconcerting enough. Unfortunately, it doesn't stop here. The negative effects of flat-rate get exponentially worse, as it opens "wide" the door to rip you off!

Car Repair Prices: Why Your Oil Change Is Never 'Just An Oil Change'

2012-03-31T04:03:00.000+00:00

For a repair shop, there is little profit in the $29.95 oil change. By the time a shop pays its technician, pays for the oil, the filter, and the hazardous waste disposal fees, there's no money left.

This low profit margin is worsened by the extremely competitive "Quick Lube" business, which forces local repair shops to refrain from raising prices, despite rising costs.

This all begs the question: If oil change specials, which range from $15.95 to $29.95, clearly produce very low profits, then why do so many service facilities advertise oil change specials?

The answer is actually very simple: It gets you in the door. Service centers know that once they have your vehicle, they can sell you additional work. Crude Oil Brokers website.

Suggesting additional work is called upselling, and it's a primary profit tactic of every service facility.

Here's a typical example. You drop your vehicle off for "just an oil change." Upon completion your service representative smiles and proudly states, "We noticed that your air filter was dirty; so we popped in a new one." You may think "Great; what wonderful service!"

What really occurred is that you were casually upsold an air filter. It probably wasn't needed; it certainly wasn't replaced according to any factory recommendation, and you were definitely overcharged for what was most likely a poorly-fitting, aftermarket, inferior air filter.

Here's a real-life example that occurred recently. This particular vehicle had 54,000 miles on it, and was dropped off at a local shop for "just an oil change." Upon paying the bill, the customer was handed an estimate for $199 to replace his air filter and top radiator hose.

Shocked at the price, he called me.

After review, I found that the air filter suggestion was premature. It didn't need replacement until the manufacturer's recommended 60,000-mile service interval. The top hose was also premature. In fact, it did not need replacement at all, despite a very minor problem easily addressed during the factory maintenance schedule—at no extra cost.

Check out the aftermarket part prices quoted below (including the unnecessary radiator hose). Compare these to the manufacturer's suggested retail price (MSRP) for the factory OEM parts (Original Equipment Manufacturer).

Local Shop Aftermarket Air Filter: $32

Manufacturer OEM Filter, MSRP: $17

Local Shop Aftermarket Top Hose: $36

Manufacturer OEM Top Hose, MSRP: $19

Notice that this local shop was doubling the price of the OEM parts with its inferior aftermarket parts.

Now, let's look at the labor time quoted.

Local Shop Labor Time: 2.0 @ $60 per hour = $120

Manufacturer Labor Time: 0.9 @ $60 per hour = $81

Notice that the shop labor time estimate for the repairs was 2 hours. This is more than "twice" the manufacturer's recommendations (even after calculating manufacturer times against the industry standard multiplier).

Had the local shop abided by the vehicle's particular maintenance intervals instead of trying to make a quick buck, it should have recommended a 60,000-mile service at the next visit. This would have better served the client, saved him $199, and maintained the vehicle properly.

Instead, the service center lost a customer, forever!

What needs to be made crystal clear is that this type of price-gouging occurs every day in every type of service facility in one form or another across the automotive service industry.

This type of price-gouging is considered normal!

Coal Reduces Reliance On Foreign Oil

2012-03-29T05:57:00.000+00:00

Recently, the price of a barrel of oil rose to $40, the most expensive price in American history. With the rise in oil prices and constant instability in the Middle East, the United States seems headed for an energy crisis.

But there is an abundant, low-cost energy source located throughout the country. That energy source is coal.

After years of mine shutdowns, there is a renewed interest in coal in the United States. Companies such as Quest Minerals and Mining Corp. are now reopening mines and resuming coal production.

There are 274 billion tons of coal in mines across the country. That amount of coal could last the United States for about 250 years, considering that the average American uses 7,000 pounds of coal each year. Using this resource decreases dependence of foreign oil and stimulates the economy in several ways. Crude Oil Brokers website.

First, coal stimulates the American economy by maintaining and creating jobs for people that work in the mines and in coal transportation. For each of the four major freight rail lines, coal represents at least 40 percent of the total tonnage hauled each year. Many people are dependent on coal for their livelihood and will remain so if Americans increase their use of coal as an energy source.

Moreover, because coal is a domestic resource, the cost of transporting it is much lower than the cost of importing oil from other nations. Transportation costs of coal are also lower because there are more options for transporting coal from one place to another. Coal is carried by barge and by train.

Using coal is beneficial for more than just jobs and reducing transportation costs. The abundance of coal allows the price to remain stable, unlike oil prices in the volatile Middle East. Commodities like coal, whose costs remain stable or decrease, keep inflation low. Low inflation rates allow Americans to be confident that their savings and investments are safe.

Another major benefit of coal power is the cost of electricity generated by coal. Generation of coal power costs one-fourth that of natural gas power generation. Businesses using coal power keep their overhead costs low and maximize profitability. Furthermore, coal is used to generate electricity for telecommunications, computers and all other electric-based technologies that boost the American economy.

The benefits of coal power make it a logical choice for the power source of the future of the United States.

Oil Partnerships: How to Protect Your Investment

2012-03-27T06:25:00.000+00:00

As burgeoning economies push the demand for oil to historic highs, some analysts say the world's oil production is in the process of peaking. Believing that an oil crisis -and, thus, higher prices - is inevitable, some investors are seeing dollar signs in their future.

According to the International Energy Agency, 2004 world oil demand increased by a higher rate than any year since 1988. And if current trends continue, worldwide oil demand will exceed 120 million barrels per day, according to the Energy Information Administration.

As oil fields yield less oil to satisfy this demand, prices are predicted to keep climbing. Forward-looking investors who see an opportunity to profit from these high prices are entering drilling partnerships with oil and gas exploration companies in geographical areas known to have established oil fields. Such drills may result in commercially marketable oil being found, bringing an investor anything from modest monthly checks to great wealth.

Although it's a risky investment, a good drilling partnership program may only have to hit one successful well to create a substantial profit. In addition, drilling partnerships can offer outstanding tax advantages.

However, investors should be cautious and research the company thoroughly before investing, said Dr. Roger L. Cory, President of Mammoth Resource Partners, a company that explores for oil and gas in oil-rich areas of Kentucky.

Cory says the company sets itself apart from others in the industry in the way it does business - more communication with and accountability to its investors. Through its "Partner Communication System," for example, investors are kept up-to-date on drilling activities via an online drill log. They also are able to see the status, GPS coordinates and permit numbers for each drilling project as it progresses. Crude Oil Brokers website.

Investors also should consider the net revenue interest - the percentage of the profits that investors receive from the sale of the oil produced, Cory said. Mammoth offers competitive net revenue interest.

Another thing for a potential investor to address is whether the company takes steps to increase the likelihood of striking oil. Mammoth packages multiple wells into one project and uses computer technology to minimize the risk of "dry holes."

And unlike others, Cory says, Mammoth includes already-producing wells in its packages to provide income and offset risk while exploring for new strikes.

Enhanced Oil Recovery, Secondary, and Tertiary Recovery

2012-03-25T07:22:00.000+00:00

Did you know that much of the oil in the ground is still present after primary recovery? In the king's english that means there is still a lot of oil left in a well even after 10 years of pumping. The reason oil production slows is that the natural drive that once pushed oil aggressively towards the wellbore has subsided. Normally, the natural drive is either water or gas in the formation. In this article, we look to explain some of the common enhanced or secondary/tertiary methods of oil recovery.

With oil hitting new highs every day, it is clear the cost benefit of utilizing technology to get at extra production makes sense. When oil was in the $10-20 range, the incremental cost of some enhanced oil recovery methods did not make economic sense.

One of the most common secondary recovery methods is a waterflood. Essentially, a waterflood is a reintroduction of water into the formation to create a drive to push more oil towards the wellbore. To increase the efficiency of a waterflood, new methods utilize Alkaline-Surfactant-Polymer floods and some explorers are introducing microbes into the wellbore to increase the sweep efficiency of the flood, both methods have been met with success.

One method I find very interesting and have used with success on one oil well is the radial jet enhancement. The technology utilizes jets of high water pressure to cut laterally into the formation up to almost 300 feet. The technology can be viewed at wellenhancementservices.com, ask for Steve Bowen if you are interested in utilizing the technology on some of your new or old wells. Crude Oil Brokers website.

With 80% of the oil still in the ground after primary recovery, there is still plenty of meat on the bone for utilizing EOR. New technologies are constantly being tested and will lead to greater gains in the future. One area I am very interested in is new drilling technology. The rotary drilling rig has not changed radically in 100 years but new advances are coming and we'll discuss those in future blogs.

Oil - The Lifeblood Of Your Car

2012-03-23T08:38:00.000+00:00

I was actually a passenger in a car that was having an active oil leak. The driver knew what was happening, and was warned to pull to the side of the road and call a tow truck, but she wanted to try to make it home. Unfortunately, she didn't. The engine seized up, never to run again. What a foolish and costly mistake.

The simple fact is that the engine in your car cannot run without lubrication from oil. Heat and friction would, as illustrated in the case above, cause the engine to come to a full halt.

When I bought a new car many years ago and took it in for it's first oil change the mechanic said to me that if I kept the oil changed I'd get 200,000 miles out of the engine. He was right. I faithfully changed the oil every 3,000 miles and at 189,000 miles had to say goodbye to my faithful friend, not due to engine trouble, but due to a rusting frame. He also noticed that the oil filter that was on my vehicle from the manufacturer was larger than actually called for. He said this wasn't a bad idea. A larger amount of oil meant more flowing through the engine cooling and lubricating and cleaning the engine. When I started to change the oil myself I kept on using the larger oil filter.

Most new cars today don't call for their oil to be changed quite as often as every 3,000 miles. Generally it's 5,000 and some even more. I like to have the oil in my car changed at least every 5,000 miles. That oil change is actually more than an oil change. The technician gets to give your car a once over, checking belts and hoses and other vital fluids. Generally we don't even think about these things. It's much easier to change a worn belt while your car is in the shop than be broken down on the side of the road waiting for a tow truck. Crude Oil Brokers website.

The simple act of changing the oil in your car may be the best thing you can do to protect your car, and your investment in it.

Oil Panic! The Three Myths Driving the Market Wild

2012-03-21T08:44:00.000+00:00

Oil is by far the most widely traded commodity in the world. It is also the most corrupt.

By way of example we need look no further than the events of the past two years. What with our TV screens filled with images of blazing oil pipes in Iraq, traffic jams in Shanghai and hurricane disasters in the US. A seemingly endless list of horrors endlessly regurgitated. All this with one goal in mind: to convince us all we face an oil crisis of biblical proportions.

OPEC warns they cannot keep up with demand. We see faceless "experts" wheeled in to pontificate on China´s insatiable oil demands. They “fret” over gasoline and heating oil shortages, the failure to discover new oil fields and agonize over how our oil reserves will sink to dangerously low levels within twenty years.

Now, of course, the market is all in a lather over Iran and whether they will hold oil off the market. Oh, sure, as if they don`t need our money as much as we need their oil.

Inevitably, crude oil prices rocketed from $25 per barrel to a recent high of $72. At the time of writing the price stands at $66 which, the media breathlessly warns, represents merely a pause for breath before its run continues to $150 and gasoline to $5.30 per gallon.

Now before you rush out to replace your SUV with a battery driven car with the power of a hair dryer, you should know the real facts, the real story. Talk about being spoon-fed a plateful of old baloney! Let me expose the three popular myths (=lies):

MYTH #1 - Demand Heavily Outstripping Supply

The monthly reports from the IEA (International Energy Agency), the bible for the trading pits, contradict this. Worldwide, inventories grew to near record levels, having climbed steadily since the invasion of Iraq. So, if demand exceeds supply how come we see inventories climbing? Consider the perversity of rising inventories AND rising oil prices.

MYTH #2 - China Voraciously Sucking-In Oil

Yeah, right. The same IEA reports show that in 2004 China increased its imports by a fairly modest 900,000 barrels per day. Compare this with daily world consumption of 20 million barrels. In 2005, China´s imports actually dropped! They not only consume less but they manage to sell the stuff to the US! But the market boys refuse to allow these facts get in the way of a good story!

MYTH #3 - No New Discoveries of Oil Reserves

The Department of Energy itself estimates that world reserves stand at some 7.6 trillion barrels. To put this into perspective, since 1971 the world consumed just 767 billion barrels! This estimate includes (quite apart from the huge tar sands deposits in Alberta and Venezuela) the recent finds off the coast of West Africa, the Gulf of Mexico, the South China Seas and the Falkland Islands. These taken alone equal half world consumption to date.

Oil crisis? The only crisis I can see, the world is drowning in the stuff! We have enough for the next 400 years! How many people do you know failed to get their tanks filled due to shortages?

So what lies behind these spiraling oil price? We need look no further than those profiting from it, the usual suspects, namely the oil producers, the oil companies and speculators, mostly in the guise of hedge funds. All big winners in the Wall Street crap game. All aided and abetted by the sold-out financial media. They conspired to coin an extra trillion or more dollars in profits at the expense of Joe Average. All effortlessly achieved under the glazed eyes of our elected politicians.

These same politicians stood by during the plunder by DOT.CON stocks, the collapse of the rigged stock market, the wipe-out of peoples` savings and pension funds and the billions of dollars stolen by the "captains of industry." Now they watch helplessly while this latest oil swindle unfolds.

So What Can You Do? If the politicians refuse to act then we must. Firstly, why not follow my example and send this article to your elected political representative? Demand an explanation. At the very least urge the banning of these avaricious hedge funds. They exist for no reason other than to manipulate markets, up or down, purely for personal gain, fleecing you in the process. Send copies to your friends. Urge them to do likewise. Get hopping mad! Stop the Wall Street hucksters from getting their $150 per barrel oil. Crude Oil Brokers website.

Secondly, do not trust Wall Street with your money; do not assume your job and your pension are safe. They are not. Have an escape plan. Get a second income. Check out this link techno-twerp.com for some real advice. In these uncertain economic times, be prepared for the unexpected.

Investing In Oil And Gas Opportunities

2012-03-19T10:38:00.000+00:00

Investing in direct participation, or working interest ownership in new oil & gas prospects being offered by only the very best oil & gas independents, and broker/dealers is now a pretty common way to beat the stock market, and just about any other passive investment being offered to you today... particularly when... but only when... you can do it correctly...

Cash flow is always king, and making money when oil & natural gas prices are going up, and to be able to do so while not having to sell your working interest ownership to make a profit, is a chief advantage of investing in only the most successful of the developmental, and exploratory oil & gas drilling prospects being offered to private & industry investors today...

First, you need to be investing with the right companies...only the most successful...those who are fully aware of all the risks associated with drilling for oil & gas, and they must know how to control them...for example...by being aware of the absolute requirement to diversify, and spread-out the risk of dry holes, and poorly performing wells...by picking the very best and most lucrative oil and gas options by using only the best technology we have, and by working with only the best drilling companies, and contractors, etc. etc...

Don't fall for quick estimates of establishing cash flowing distributions from new wells drilled, completed, and placed on line...unless they are very shallow, and simply offsets to other wells already in production. You must normally wait at least 90 days before you begin to receive income from new development activities in a lease hold interest, or Area of Mutual Interest (AMI)...purchase contracts must be negotiated, and fine tuning of new wells is typically required before steady revenue can be established and maintained...6 to 12 months is often needed for cash flow to begin...this is especially true when drilling deep on shore, or off shore wells with big commercial reserves...however, the major oil companies, and large independents are targeting very big recoverable reserves of both oil & natural gas...and their prime objective is to 'book large reserves'...and maintain revenue streams over a relatively long period of time after bringing their new wells on line...in other words they are looking to establish long term cash flow, and value...as opposed to getting short term 'bragging rights'... it can be pretty easy to quickly drill a shallow well and find a little production...only to find these same wells falling-off, or declining rapidly...you then find you are just 'trading dollars'. rather than discovering big new commercial quantities of oil & gas... drilling wells with rapidly depleting reservoirs isn't why the more successful oil & gas professionals are in the business...

You must be 100% sure the tax write-offs are being properly listed as legitimate tax preference items in the yearly K-1 reports, which are prepared by the development companies and sent to the IRS each year... you are then certain of getting all of the legal tax benefits, and be assured of taking every one of these tax write-offs you are entitled to receive to lower your taxable income from all sources. Crude Oil Brokers website.

Compounding your cash flow from oil & gas monthly revenue distributions, and knowing what your return on investment really is...also...by knowing internal rates of return, and trusting the companies you do business with to be well aware of the 'time value of money'...when calculating the total returns on your money over time... really is the key... this level of sophistication is only possessed by the top people in our business...if this sounds interesting, and makes good sense... just give us a call, or sign-up for the newsletters, and updates we send to people making inquiries about oil & gas investments.

Deciding Whether To Invest In Oil Stocks

2012-03-17T10:53:00.000+00:00

The decision to invest is confusing in general but when you are deciding on very particular stocks, it takes a significant amount of research in order to feel confident in your choice.

One popular choice of investment is that of oil stocks; the reasons for its attractiveness are incredibly diverse. And deciding whether you want to involve yourself in this particular industry is a very personal choice.

Oil stocks are generally thought of as a safe and consistent investment. The need for oil will never dissipate; the theory is that oil stocks will continue to hold their value because of the demand for the product.

Not every oil stock is the same. And so each stock must be researched thoroughly to avoid any surprises. You must first determine whether a particular oil stock is overvalued. Some oil stocks may look to yield a dramatic return on investment but the earning ratio must be considered; such a large profit margin – while appealing – may indicate volatility. Crude Oil Brokers website.

Another thing to consider when deciding whether to invest in oil stocks is to choose between what is referred to as a Trust Unit and a Common Share. Trust units are a conservative form of oil stocks that does not attach tax to the stock. The growth that the oil stocks can achieve - in the form of a trust unit - is limited but the risk is also minimal.

The riskier oil stocks are what are known as common shares, whereby earnings by the company are reinvested into the stock. This type of oil stock carries a greater risk but the possibility for greater reward.

Finally, you need to make the decision between natural gas or oil stocks. Natural gas – not as consistently in demand as oil – tends to be more unpredictable. These are things to keep mind when making your decision.

Whatever you choose be sure to conduct thorough research before making any purchases. There are plenty of online resources available for those looking to begin trading on the stock market.

You may also want to consult a stock market professional who can expertly guide you through the process of buying and selling oil stocks. It’s okay to ask questions. Stop at nothing to learn all you can about oil stocks and the stock market in general.

Deciding whether or not to venture into the stock market can be an enormous decision. Oil stocks can be a relatively predictable way to begin your journey.

Oil Exploration Update: U.S. To Play Catch-Up With Cuba

2012-03-15T10:57:00.000+00:00

Startlingly enough, it looks as if the time will soon arrive when the USA will have to play catch-up with Cuba in oil exploration. The diminutive and destitute communist enclave that serves as Fidel Castro’s personal cigar plantation now realizes that it has enough oil reserves under its coastal waters to prop up its no-go economy for decades and, incapable of assembling the capacity to out the oil itself, the island nation has begun to license drilling rights to other countries, including China, the prospect of which alarms us, and Spain, the idea of which invites us to think of tapas.

In wisdom wrought from its neediness, the resourceful islet has also offered to license American oil companies.

Expectedly enough, the very prospect of Cuba scooping oil out of the ocean floor while America has outlawed it for decades has enkindled hot debate in Congress about the present wisdom of our self-imposed interdiction. The debate has rapidly blossomed into a gusher partly because America has even more proven oil reserves in its coastal waters, no doubt principally because it has even more coastal waters.

Persuasively enough in these oil-dear times, there seems to be enough of the black gold there to meet all of our energy needs for about 18 years, or long enough for all the leaders in the Middle East who we aren’t getting along with these days to go the way of leaders everywhere who, we determine, are irredeemably misguided.

Naturally, conservation societies have been galvanized into opposition by the mere prospect of an oil bit chomping into the emerald waters of our abundantly fishy coastlines in search of the liquid treasure below the reefs. Crude Oil Brokers website.

As the debate bubbles on, we can only consider a worst-case, best-case scenario. Worst case: we do nothing while foreign companies who don’t exactly have the most reverential reputations in ecological propriety drill away and, as time allows, send oil spills slithering onto our beaches. Best case: we race to catch up with Cuba and maybe even preempt the ill-advised entanglements that might otherwise drill down into our hemisphere.

Since we’re actually talking about drilling in our own backyard pond, we might also, one hopes, do it in ways that are less likely to lead to the shameful oil blights that fill us all with remorse and send fish and fowl off to tarry death – derelictions that strange countries in a strange land might less assiduously labor to avoid.

Future Of Oil

2012-03-13T12:12:00.000+00:00

In recent days oil market has witnessed surge in global oil price. Crude oil went to a two-month high on concern that U.S. refiners will fail to produce enough gasoline to keep up with peak demand this summer.

Short fall in supply of oil from Nigeria and uncertainty on Iranian nuclear issues are already keeping buyers of oil nervous. Delivery in May future hit $68 per barrel, a 20 pct jump from last years $56.5 per barrel, only $2.85 from August 2005 high's of $70.85.

Since last 3 years oil market has been witnessing a substantial rise in the average price of oil. Last week number of oil analyst and agencies have one again raised their 2006 average forecast price to $63.

US Energy department Data reported that refineries are operating around 86 pct of their capacity. Analyst estimates that during same period last year, plants utilised 94 percent of their capacity. Not to forget that February, March & April are also crucial as all the maintenance work is done during these months.

There is difference of opinion as experts differ on whether the current soaring oil demand will outstrip the current supplies, and how quickly.

But for oil watchers, what could be more concerning is that if the current surging demand from China and India persists then Saudi Arabia, which has a known 25% global oil reserve, may see its oil reserves dwindle in twenty years time. Many leading oil analyst says Saudi Arabia is believed to be forced to over supply http://www.topsuppliers.com .

The country has the ability to produce 15 million barrels per day. Middle Eastern Oil analyst is of view that if Saudi Arabia produces 15 mbp, the lifespan of Saudi Arabia's proven oil reserve of 260 billion barrel, 100 billion has already been used and therefore the reserves can be used in our lifetimes.

Meanwhile, last year's impact of five major hurricane hitting United States of America still has the biting effect on the oil industry. Coastal oil refineries are still fighting to deliver maximum production.

Developing oil sands or natural gas-based diesel fuel is slower and more expensive proposition, though researchers are making every effort to produce an alternate to counter oil price.

US President George W Bush in his one of his State Union address in February, called for intense effort to develop more efficient fuel sources. The US Energy Department and the Agriculture Department spend tens of millions of dollars every year on biomass-based energy research and development. This is in addition to the billions of dollars. More than $4 billion was spent in 2004.The U.S. provides in subsidies for the production of corn, from which most domestically produce ethanol is derived.

Considering how ethanol is produced, corn or sugarcane is grown, harvested and delivered to an ethanol plant. Growing and harvesting the corn and heating the reheating the fermented corn of sugarcane to produce ethanol of a high quality to replace some of the gasoline in car requires enormous amount of energy.

According to researchers, it was found that it takes 30 pct more energy to top make ethanol from corn. Wood biomass takes 55 pct more energy. Swiss grass takes about 50 pct. Ethanol is just highly uneconomical product in the West, as compared in developing countries, also due to low labour wages. It also contributes to air pollution. Cars running on gasoline containing ethanol produce more air pollution than cars running gasoline alone.

Another research work on Pig manure is underway. One pig produces 10 pounds of manure to yield up to 21 gallon of crude oil. Hence, it is estimated manure from America's 60 million pigs could produce 50 million barrels of oil a year. Framers can earn $10 per pig from manure.

There are all very expensive propositions. The researchers would continue to search for oil alternate, but substitute for oil may still be far away. With current pace of global growth, thirst for economic boom and demand incurring due to population explosion is unending. Crude Oil Brokers website.

I have very few reasons to believe that oil prices will fall to USD 50 per barrel and would rather like to argue that we would continue to see higher oil price trend. Without which search for new oil find could not be met due to high exploration cost. Oil price could also be kept high intentionally, to give investors incentive to explore oil and to developed alternate fuel find which requires billions of Dollars. With growing annual demand for 2 million barrel per day, most of it coming from Asia, one single event that disrupts oil production could send prices sky rocketing. Current demand for global oil is 84 million barrel per day. I expect the oil to trade in a USD 75-80 range in a short span of time. Not long ago talking of oil price averaging USD 60 was a sin. So let us get prepared for the next coming big move.

Rising Commodity Prices Causing New Turmoil Through The Mining Sector

2012-03-11T12:37:00.000+00:00

The Gold and Silver Index (XAU) is holding steady above 120, having reached a high above 156 in January, a level it had not seen since September 18, 1987. The spot uranium price is higher than it’s been since January 1980. Crude oil? Filling up your gas tank should remind you that oil prices are still painfully high. So all of this must mean mining companies are thrilled with their good fortune? WRONG! There’s a snowballing crisis in the mining sector, which has been kept off the typical investor’s radar screen. This new emergency could drive commodity prices to even higher levels over the coming months, and possibly until the end of the decade.

The two-decade long bear market drove many geologists out of the mining sector. Drilling companies went bankrupt. Even with the recent explosion of activity in the mining sector, exploration in the sector is less than one-third of its peak in 1981, when more than 5,500 drill rigs were running. Crude Oil Brokers website.

The mining sector’s labor and drill rig shortage has gone past the “we’re in a crisis” stage. Without qualified geological staff and drill rigs for exploration and development programs, companies may fail to get their projects online fast enough to satisfy the worldwide demand for their metals, whether it is gold, silver, copper, or uranium. The Baker Hughes North American rotary rig count is a good barometer of how strongly the commodities boom has impacted the sector. In 1999, the U.S. and Canadian drill rig count reached its nadir of 488. On March 17th, the number stood at 1546 and climbing. Over the past seven years, the count jumped 316 percent. Compared to a year ago, the North American Rotary Rig Count is up by nearly 20 percent.

During the course of our three-month investigation, we found the labor and equipment shortage applied not only to uranium but also to coal, oil and gas, coal bed methane and precious metals exploration. Ed Calvert, who runs Nucor Drilling Inc in Wyoming, exclaimed, “There just aren’t any rigs available in the U.S. You may find one, but it’s a problem finding the right rig at the right time.” His company began searching for a drill rig in September for drilling scheduled to commence June 1st. Calvert explained that the big oil companies had signed up rig contracts so they wouldn’t get caught short, adding, “Whether the rigs are being used daily or not, they are paying the fees to hold them.”

Vancouver-based Max Resources announced in early January of this year they had received permits to drill on their Thomas Mountain uranium prospect in Utah. They hoped to drill in late January, depending upon drill rig availability. Max Resources recently announced it planned to start drilling on or about the middle of March. Norman Burmeister planned more wisely, announcing in mid January Kilgore Minerals would drill the company’s Idaho gold property in July.

The drill rig shortage pales when compared to the frighteningly tight labor market in the mining sector. According to the February 2006 Employment Situation Summary, published by the U.S. Department of Labor, “Mining continued its upward trend in February, adding 5,000 jobs.” Cynthia Pomeroy, Director of Wyoming’s Department of Employment confirmed the crisis, “There is definitely a labor shortage.”

Matt Grant, assistant director of the Wyoming Mining Association adamantly announced, “There are 800 direct job openings in the mining business that could be filled today.” He quickly noted another 2400 indirect jobs to service the mining industry remain empty, begging for bodies to satisfy those positions. Starting geologists make between $35,000 and $50,000 annually. Top geologists command $200,000 and higher. Mining consultants get $800-1000/day. Even day helpers on drill rigs can charge $22/hour or more. Wyoming state and county development associations have attended job fairs in Michigan earnestly trying to fill the growing job vacancy by recruiting laid-off auto workers.

David Michaud, president of TheJobPit.com, finds jobs for geologists, metallurgists and others in the mining sector. A mining engineer and consulting metallurgist, having graduated from Queens University in Kingston, Ontario, and until recently the operations manager for Corriente Resources in Ecuador, he began his internet employment agency for the mining sector because the demand was overwhelming. “Headhunters who have been around for twenty years say they’ve never seen a market like this,” Michaud stressed. “For the last ten years, the mining industry fed mining graduates to the wolves. Now they need them. All are busy with no takers to those far away places.” Michaud lambasted the mining companies for their lack of foresight, “Mining companies have to expect the demand for professionals, such as production geologists, will go up with the price of metals. There were no jobs for the past eight years.” He added, “It takes two to five years to train them.”

For example, Michaud is desperately trying to fill a South American mining company’s job opening for an experienced metallurgist. “Free housing, two cars, four weeks off annually, two plane tickets, basically no living expenses, and a salary starting at US$150, 000,” Michaud sadly explained because no one has jumped at the offer. “In the field of metallurgy, including mill managers, metallurgical engineers, techs and operators, about 150 new jobs are offered each month.” Only about one-half will be filled. Michaud warned the copper mining companies were in especially dire straits to fill new job openings.

The U.S. Energy Information Administration announced in its most recently published annual report, “The U.S. uranium production industry initiated a turnaround in 2004. All U.S. uranium drilling, mining, production, and employment activities increased for the first time since 1998. More companies conducted exploration and development drilling than in the prior 2 years. Employment in the U.S. uranium production industry totaled 420 person-years, an increase of 31 percent from the 2003 total. Wyoming accounted for 33 percent of the total 2004 employment, while Colorado and Texas employment almost tripled since 2003. Overall, $86.9 million went to drilling, production, land, exploration, reclamation and restoration activities in 2004.”

While the spot uranium price continues rising, exploration companies may find it harder to recruit veteran uranium geologists, to sign contracts for drill rigs, and to operate those rigs. Nucor’s Calvert laughed, “Finding and keeping employees is definitely a problem.” Michaud explained, “Finding a metallurgist is hard enough. Finding one with uranium experience is almost impossible.” David Miller, president of Strathmore Minerals, lamented, “Expertise in the uranium industry started with geologists who made discoveries in the late 1940s through the late 1970s. They trained the next generation, which coincided with the 1970s uranium boom. That boom was short lived and fizzled out by 1981. A very small number of professionals continued in the uranium industry, during the twenty-year bear market. Now that the number of uranium companies has skyrocketed to more than 420, there is a potentially catastrophic shortage of uranium expertise.” The generation gap has come to haunt the industry.

What’s the solution? Many, such as Michaud, believe, “Retired baby boomers are coming out of retirement to fill the generational gap and ride their last metal rush into the sunset.” Bloomberg News ran a story on December 8th discussing developments in the oil sector, “U.S. producers and contractors such as Ryder Scott, which assesses drilling projects and oil and natural-gas reserves, are working harder to keep their oldest employees and recruit college graduates because there aren't enough new engineers to go around. Engineers who help find petroleum deposits are in demand…”

Aging talent has found its way back into the uranium sector. Aging geologists such as Dr. Boen Tan, who helped discover two of the Key Lake uranium deposits in Canada’s uranium-rich Athabasca Basin in the early 1970s, is now helping Forum Development explore for new uranium deposits at its Costigan Lake, Key Lake Road and Maurice Point projects in Athabasca. Uranerz Energy’s entire advisory board consists of former Uranerz professionals, including top geologists, Dr. Franz Dahlkamp and Dr. Gerhard Ruhrmann. Respectively, they have 45 and nearly 30 years experience in the sector. Strathmore Minerals geological team includes former Pathfinder Mines employees, a subsidiary of Cogema, including board member Dieter Krewedl, President David Miller, and vice president of technical services, John DeJoia. Some of these companies bring more than 200 years of experience, collectively, to their new ventures. But without sufficient new mining school graduates to mentor under them, future exploration and development may become stalled.

What is troubling about the uranium market, in particular, is that the soaring spot uranium price shows no signs of abating. The crisis comes at a time when President Bush announced his nuclear initiative, as more U.S. utilities plan to add to the country’s nuclear fleet, and as China and India clamor for a reliable source of uranium to fuel their aggressive nuclear energy programs. Without uranium for those reactors, the power plants won’t produce the electricity required to meet their demand. As an aside, uranium mining is the stage in the nuclear fuel cycle where the environmentalist fanatics are baring their teeth. This past November, an office manager at Albuquerque’s Southwest Research and Information Center, an anti-nuclear activist group reportedly funded by Mott’s Applesauce and Ben & Jerry’s ice cream, told us when we went undercover, “We want to stop the front end of the nuclear fuel cycle, which is uranium mining.”

Don’t say the warnings weren’t made well in advance. At the World Nuclear Association (WNA) Symposium in 2004, Dr Moukhtar Dzhakishev, a Russian physicist and a former deputy minister of energy and mineral resources, presented his conclusions, “Firstly, natural uranium mining capacities cannot satisfy reactor requirements. Secondly, accumulated uranium inventories will be exhausted sooner or later. Thirdly, the spot price does not reflect the actual problems and, on the contrary, is capable of misleading all of us about the urgency of investments to be made in the development of new mining facilities.”

In his speech, Dr. Dzhakishev emphasized to the WNA, "Judging by these facts, the conclusion is evident: one day nuclear power plants will face a natural uranium shortage and it is not necessary to be a prophet to foresee this. It is clear today that the key to the solution of the major problems of the uranium market lies with the development of the potential of the uranium producers".

This past August, Angela Jameson reported in the online version of The London Times, "A GLOBAL shortage of uranium could jeopardise plans to build a new generation of nuclear power stations in Britain… a recent report by the Asia Pacific Foundation of Canada said that there was likely to be a 45,000-tonne shortage of uranium in the next decade, largely because of growing Chinese demand for the metal".

The upward spiral of the commodities boom is racing ahead at full speed. Depending upon whom you talk to, the labor and drill rig shortage is either very bad or worse than you can possibly imagine. If there are commodity inventory shortages right now, what happens by the end of this year, or later this decade, if current exploration efforts get grounded because companies lack the trained personnel, the proper equipment and the expertise to explore and/or develop their properties? You can’t run a drill rig if you can’t get your hands on one. You can’t drill the property if you can't find drillers to run the rig. While commodities prices soar to levels not seen in twenty or thirty years, the tight labor and equipment market could ratchet prices to much higher levels. And junior uranium development companies, with proven pounds-in-the-ground assets, should become sought-after acquisition targets by those who have the staff and drill rigs to bring the projects online.

For investors, the labor and drill rig shortage has a silver lining. As inventories dwindle lower, commodity prices will continue rising. For junior uranium investors, this might someday be realized as the "hidden reason" why spot uranium prices continued rising past $40/pound. If you don't drill for the commodity, you can’t find it and develop it. This strengthens the case for $50/pound uranium in the near future. Now we understand why Strathmore Minerals’ David Miller warned us in November, "I wouldn't be surprised to see uranium prices double again".

Venezuela Threatens To Cut Off Oil Exports To US

2012-03-09T12:53:00.000+00:00

On Sunday, Hugo Chavez, president of Venezuela, threatened Condoleezza Rice. Last Friday, he also made treats to discontinue exporting crude oil to America if they will still try to undermine his administration.

This is his response to previous statements made by Condoleza Rice that relationship of Venezuela with Cuba are perilous to the democratic system in Latin nations. Moreover, the US State Department accuses Chavez of utilizing Venezuela's abundant oil assets to interfere with the dealings of adjacent nations. They also criticized him of enhancing relationships with America's enemies, for instance, Iran and Cuba.

Furthermore, Chavez, a populist leader and a former military officer, accused the Americans of attempting to produce anarchy in his bid for re-election. In 2002, he expressed that US is maneuvering a coup that has overthrown him for a short time.

He stresses that the Americans will never get their oil. He also adds that US authorities would be unsuccessful in trying to make other countries go against their nation.

He asserted that Venezuela will not suffer if they can't supply their oil to America because he has already talked to other oil consumers, which is his contingency plan. In 2005, Chavez has roamed around the globe to look for new allies against the US and new countries to sell oil with. He signed contracts with countries exploring new oil sources to power their industries, like China, France, and India. He also purchased military equipment, such as Russia's military helicopters and rifles, Brazil's military aircraft and China's radar equipment.

Venezuela has placed fifth in the record of biggest oil exporters globally. Moreover, this country is an Organization of the Petroleum Exporting Countries (OPEC) member. It produces three million containers of oil per day, and sells 75% of its oil manufacture abroad. It distributes over a million containers of oil per day or supplies 13 percent of oil imports daily to America.

Therefore, America is dependent on Venezuelan oil. US is in dire need of alternative refined oil product and crude oil suppliers, like Venezuela, for the reason of uncertain oil supply situation in Middle Eastern nations. Richard Lugar of American Senate thinks that a reduction in importation of Venezuelan oil can affect the US economy, as he asked a government office to conduct a study on this matter.

Previously this month, Chavez banished a US naval attache because the American was allegedly spying on Venezuelan government. As a response, the US State Department expelled a diplomat from Venezuela. Crude Oil Brokers website.

How Does The Price Of Oil Affect The Stock Market?

2012-03-07T14:03:00.000+00:00

Ever since the price of crude oil started growing there has been talk about the price of oil affecting the share market and your investments. Now if you think about it logically it does sound like it would make an affect. If it costs a company more to run the company because oil prices are changing then it sounds like it would affect the share price. Same goes for the idea that people will be less or more likely top purchase shares in a company that has something to do with oil. So for instance would you invest in a company which sold hose sockets if you were in a draught? However is this theory about crude oil price affecting the share market actually real?

The rational behind this theory is that because many companies freight their products, they have to pay more to transport the products when price of oil goes up so does the transportation cost. This of course drives up the price of the product. So if the company wants to keep the price of their product at the same level, there will be less corporate profit and the share prices will go down after that. Makes sense right? Well maybe not!

Companies do tend to put up the price of their product or service if the price of providing it goes up. So the profit margin will stay at approximately the same. However if the mood of the population, and in particular the stock market investor population, changes about the product the industry might suffer.

Yes global events that affect the price of products like oil (think about Hurricane Katrina) do affect the investment mood. When there is a massive climb or dip people and investment companies tend not to change their portfolio around too much. But however when something grows in price over time people is less likely to react. We all know that the price of oil is growing but it is not like when a major event happens.

Straight after an event occurs fear spreads like wildfire. One person’s fear turns into the fear of an entire investment industry. So no one buys or trades, but there are generally lots of people selling. So there is no actual understanding of what is going on. Once the environment calms down so does the market.

So yes in massive bombs the price of oil will affect the price of shares. But in a long term growth situation it won’t matter. The price of oil has almost quadrupled over the last five years. But has the price of shares? Crude Oil Brokers website.

Not really because oil has become an even more precious commodity people want it even more. And owning shares in an oil company will give you that piece of Texas gold that you have been craving. So the price of oil shares hasn’t really changed, and if it has it has grown.

So if we know that market changes will affect the share price because of the mood of people buying and selling shares we can predict the change. If you feel a change in mood, it is almost certain that there will be change in market. So you can sell, but there also is a chance that the price will raise again after too long.

Drillers Hope to Strike It Rich With Old Oil Wells

2012-03-05T15:58:00.000+00:00

Exploration firms are finding that reopening oil wells that have long been closed may help decrease the crude oil shortages.

For example, Desdemona, Texas, which was booming with oil production in the early 1900s, once was one of the largest oil producers in the region.

Unfortunately, the town's heyday ended almost as fast as it started due to some of the oil wells drying up. Its production of 7.3 million barrels of oil per year was rapidly depleted. Production plunged to under 2.5 million barrels within two years.

But thanks to enhanced oil recovery techniques such as waterflooding (the injection of water into an oil reservoir to recover its petroleum) old wells in Desdemona are experiencing a rebirth and will be converted into producing and injection wells.

This also is true for good producing wells that were capped in the early to mid-1990s in the Appalachian Basin region. Research by Mammoth Resource Partners, Inc., a Kentucky-based oil and gas exploration company, found that many landowners and small oil companies were unable to maintain these wells at the low oil prices they were being offered.

Given the current worldwide oil crisis, many experts agree that state-of-the-art technology is a key component for companies who want to reopen closed oil fields. Dr. Roger L. Cory, President of Mammoth Resource Partners, Inc., says that a healthy dose of optimism and expertise will help as well. Crude Oil Brokers website.

"With the dramatic increase in the price of crude oil and the cutting edge technological advancements that Mammoth Field Services (the drilling arm of Mammoth Resource Partners, Inc.) employs, many of these wells that had been capped have become outstanding producers and a profitable venture for our partners," said Cory.