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Valuable Market Information


Market Synopsis

  The global Oil & Gas markets are extremely volatile.  These precious commodities are approaching an ever-decreasing supply mode.  Many analysts feel that we have already reached "Peak Oil".  As this reality becomes more apparent with current events we realize that even OPEC is powerless to increase their production.  As of May 2008 Saudi officials pledged to increase their output production by a mere 300,000 barrels a day.  This is just a fraction of the >90M barrels of oil consumed daily by the world's economies.  The end result of that move if realized is insignificant.  Global demand is rapidly outstripping production.

Global Demand is outstripping Production

  This situation is not good for commerce in general, and especially for the world markets.  As time progresses, more emphasis will be placed on production of fossil fuels, and deposits that were previously too costly to exploit will be tapped.  In an unpublished memo sent to a group of investors in November of 2007 we said that we felt that Crude Oil prices would reach a range of $130-145 by Spring 2008.  That prediction was realized in May of 2008.

  Also in the time ranging from November 2007 to May 2008 some of the largest run-ups in the U.S. stock market have been in the energy sector.  But not across the board.  It's not just as simple as picking an Oil or Gas stock & investing in that company.  It takes a lot of research to find the picks that will generate sustained performance over time in this market.

  Below is a link to a very riveting presentation by powerswitch.org.uk.  If you have a few minutes it would serve you well to view it.  The facts & figures they present are based on publicly available information that indicates that if we have not reached "Peak Oil" we will very soon.  All the more reason to invest in energy infrastructure wisely today to maximize market losses in other sectors that will be immensely affected.  The presentation is a bit outdated, but it highlights what is happening globally now.

Click here to see the short Powerswitch.org.uk presentation

  This presentation is not a fear-mongering approach.  It does however, point out some very important aspects concerning global oil supply.

  FossilTrax does not endorse or agree with all points discussed in the above presentation, but we do feel that much of what is presented is accurate & very timely. 

NOTICE: Oil & Gas Scams:

  Beware of get rich quick scams where unscrupulous people try to get you to "invest" in sure bets.  Here is a link to a warning generated by the SEC.