Is Bullishness Unwarranted?

Mish at the Global Economic Analysis suggests that there is unwarranted bullishness.

Here is what I think:

There is a technical reason, may be two for the bullishness.

First, "Change" is coming to White house, most likely. Do you think political hacks like Paul Krugman will be bearish once messiah "O" is declared the next president of the U.S?

Second, The sell off in the financial markets were spectacular and they are way oversold. The rally, even if it is very unlikely to take the markets to a new high this year, is likely to be just as spectacular. That's what volatile markets do.

Bulls are right; at least for a while they will be. Messiah "O" will instill confidence until he takes office, he will propose mesmerizing grandiose schemes to "save" the economy. It will all work until he gets into office. A rally is coming, and how long it will last or how far it will go is anyone's guess. Some time in the next 2-4 months, there will be another opportunity to go short, at is my speculation.

(Nothing personally against "O", I am not a big fan of his rival either. I supported Ron Paul during the primaries.)

The 2002 lows in S&P and Dow is likely to be taken out, possibly in 2009 or 2010. Ultimately the entire Dow could be bought for 1-2 ounce of Gold. Do you think that is a fantasy? In the last century it happened twice - once in the early 30s and again in the early 80s.

As for inflation, it is likely catch the deflationistas with their pants down.
Shorting long term U.S government bonds looking like a nice trade to go into. It is not a short term trade, instead a long term one. Tremendous supply of new treasuries coming to market, as the treasury tries to raise funds to fill the humongous budget gap. Also, watch out, Chinese, Indian, Russian and Saudi governments are likely to use some of their reserves to stimulate their economies.

Obama's Loss Traced To a Single Voter.

Does your vote count? You may want to rethink, if you are planning a "non-vote" in the upcoming election.

Peter Schiff Interview On Glenn Beck Radio

Part I



Part II

Highway to Serfdom in Cartoons

Flash presentation provided by the Mises Institute

What Would You Do?

Penn Jillette asks an interesting question on Big government and Taxation.

Chavez Calls President Bush a Comrade

Reuters: Chavez says "Comrade Bush" turns left in crisis (via drudge report )

Socialist Venezuelan President Hugo Chavez mocked George W. Bush as a
"comrade" on Wednesday, saying the U.S. president was a hard-line leftist for
his government's intervention of major private banks in the U.S. financial
crisis.

Chavez, who calls capitalism an evil and ex-Cuban leader Fidel Castro
his mentor, ridiculed Bush for his plan for the federal government to take
equity in American banks despite the U.S. right-wing's criticism of Venezuelan
nationalizations.

Hugo is right for a change

SNL on the bail out.

SNL on the bail out. THe skit was so truthful, NBC apparently pulled it from their website.

2081: Everyone Will Finally Be Equal

Everyone Will Finally Be Equal

Based on the short story Harrison Bergeron by celebrated author Kurt Vonnegut, 2081 depicts a dystopian future in which, thanks to the 212th Amendment to the Constitution and the unceasing vigilance of the United States Handicapper General, everyone is finally equal... The strong wear weights, the beautiful wear masks and the intelligent wear earpieces that fire off loud noises to keep them from taking unfair advantage of their brains. It is a poetic tale of triumph and tragedy about a broken family, a brutal government, and an act of defiance that changes everything.

Naomi Klein Debates Milton Friedman

Part I



Part II



These are must watch.

Out of the closet

Gorbachev comes out of the closet -

Mikhail Gorbachev, the last communist leader of the Soviet Union, admitted publicly for the first time on Wednesday that he is a Christian.

Rumors had circulated for decades that Gorbachev was a “closet Christian,” but it as only confirmed yesterday when he made a surprise visit with his daughter Irina to pray at the tomb of St. Francis of Assisi in Italy. The former communist leader spent half an hour on his knees in silent prayer at the tomb.

Read on

Bird & Fortune on Iraq & Oil

Hilarious - Enjoy.

Don Luskin endorses Dr. Ron Paul for president

Towards the end of the video, Don Luskin endorses Dr. Paul.

Ron Paul Campaign Fund raising

Ron Paul To Bernanke: What is the moral justification for debasing the dollar?

Peak Oil Linkfest - 08/24/07

Economist Sees Peak Oil Near

Peak oil, the point at which production of oil worldwide begins a progressive decline, is probably coming soon, economist George Littel told members of the Kansas Independent Oil and Gas Association at their annual convention this morning.

Further, Littel said, when peak oil arrives it will be an economic, not a geologic, event because demand for energy is a strong driver of new exploration and production.


Current global challenges and alternative energy futures for South Africa

The combined effect of depletion of global oil and natural gas reserves, climate change and global monetary imbalances and financial instability is likely to have significant impacts on the global and South African economies throughout the 21st Century.

These impacts are likely to include far reaching consequences for energy, food security, settlement patterns and social stability.


Corn, ethanol rush relies on dwindling water

The field came to life in the August wind, dense stalks swaying in tandem, silky tassels swirling like so many kite tails in the sun.

Duard Fix shouldered his way through the lush stand, stopping to break off and husk a prize he'd been waiting for since May: The perfect ear of corn — nearly 800 light yellow kernels in 16 neatly symmetrical rows.


Saudi domestic oil consumption up 6.2pc in ’06

Saudi Arabia's domestic oil consumption last year went up by 6.2 per cent to 2 million barrels per day (bpd) from 1.89 million bpd in 2005 in the wake of economic boom, while its oil production for the international market declined by 2.3 per cent during the same period, according to the ŒBP Statistical Review of World Energy June 2007' released recently.

Economic analysts attributed the growth to the surge in economic development, especially the decision to set up economic cities, industrial estates and IT parks in different parts of the Kingdom.


Iran's hangmen work overtime to silence opposition

Stonings, hangings, floggings, purges. President Mahmoud Ahmadinejad might claim that United Nations sanctions can't hurt his country, but that is not how it feels for Iran's long-suffering population which now finds itself on the receiving end of one of the most brutal purges witnessed since the 1979 Islamic revolution.

The most visible manifestation of the new oppression sweeping Iran has been the wave of public executions and floggings carried out in Teheran and provincial capitals over recent weeks in a blatant attempt by the regime to intimidate political opponents. The official government line is that the punishments are part of its "Plan to Enforce Moral Behaviour".


World oil prices climbing again

Crude oil prices rose on Thursday after earlier losses as a steady stock market performance alleviated worries about dampening consumer demand caused by the slowdown in economic growth.

On the New York Mercantile Exchange, light sweet crude for delivery in October closed 57 cents higher at 69.83 dollars per barrel. In London, the price of Brent North Sea crude for October delivery settled 1.16 dollars higher at 69.86 dollars per barrel.


Industrial Agrofuels Have No Future; Does Food?

The E.U. has set absurdly high targets for agrofuels in its transportation fuel mix. By 2020, the E.U. intends to sate 10 percent of its transportation demand with agrofuels, and it is counting on cellulosic ethanol for most of that new fuel.
It won’t work. Advocates claim that cellulosic ethanol has a positive energy return – that is, the magnitude of energy required for biomass production and conversion is smaller than the magnitude of energy displaced by the ethanol produced. And this claim has been carefully crafted to convey the idea that (a) cellulosic ethanol can replace fossil fuels, and that (b) we should be happy with this new technology, because cellulosic ethanol is an energy-positive fuel and therefore, the more we drive the more we save.


The Peak Oil Crisis: Hurricanes and Meltdowns

Earlier this week Hurricane Dean slammed into the Yucatan peninsula and crossed over into the Bay of Campeche where some 1.5 million of the 10 million barrels the U.S. imports every day are produced. While it is too early for a full damage assessment, at best a few days of production will be lost and possibly quite a bit more if any of the production platforms, pipeline systems and nitrogen injection facilities have been damaged.


"Peak oil" becomes burning issue

Swiss scientists say politicians and the public should have a greater awareness of "peak oil" – the moment when the world's maximum crude oil output is reached.
Researchers at Basel University warn that although climate change is grabbing more headlines than the possible exhaustion of fossil fuels, a conflict is brewing over crude oil.

This suggests that U.S. imports will be less than normal over the next few weeks. While some of these imports might be made up by increased shipments from other countries, the tight overall oil market suggests that this will be difficult.


Share slump and credit crunch: passing peak oil

Regular readers may be surprised to see me offer commentary on the financial markets, given my dim view of such factories of speculation and greed. This is no sideshow, however. The unfolding turmoil may eventually be seen as a historic event. Another turning point, the worldwide peak in oil production, is a key player in this unfolding drama, although its role goes unnoticed by most in the audience.

Peak Oil Linkfest - 07/30/07

Malthusian misery's comeback

The great demographer and economist Thomas Malthus was 23 years old the last time a British summer was this rain-soaked, which was in 1789. The consequences of excessive rainfall in the late 18th century were predictable. Crops would fail, the harvest would be dismal, food prices would rise and some people would starve. It was no coincidence that the French Revolution broke out the same year.


When life hands you vegetable oil, make biodiesel fuel

A teacher at Bloom High School has been awarded a $10,000 grant to fund a student project that will create a waste vegetable oil recycling program.

Barry Latham’s student project is titled "Free Energy for Me." A chemistry and physics teacher, he received an A+ for Energy grant from BP America.


Depleting water level a big problem

An international study group has warned that the water shortages in India and other parts of the world will be a serious problem in days to come. “Scores of countries are overpumping aquifers as they struggle to satisfy their growing water needs, including each of the big three grain producers —China, India, and the US. “More than half the world’s people live in countries where water tables are falling,” Lester Brown of the Earth Policy Institute has said.


Chomsky: There Will Be a Cold War Between Iran and the U.S.

In the energy-rich Middle East, only two countries have failed to subordinate themselves to Washington's basic demands: Iran and Syria. Accordingly both are enemies, Iran by far the more important.

As was the norm during the Cold War, resort to violence is regularly justified as a reaction to the malign influence of the main enemy, often on the flimsiest of pretexts. Unsurprisingly, as Bush send s more troops to Iraq, tales surface of Iranian interference in the internal affairs of Iraq -- a country otherwise free from any foreign interference, on the tacit assumption that Washington rules the world.


Peak oil - expensive food

At one time the need for more food resulted in the worldwide increase in arable land via the clearing of forests and irrigation of arid land. The land available has peaked and is decreasing because of salination of irrigated soils, diversion to bio-fuels and the growth of cities. Cheap fossil fuels allowed pumping of water for irrigation, and cheap food transport encouraged the growth of cities away from the centres of food production.


Forget Big Oil - politicians bowing to Big Ethanol

When the Senate passed an ethanol-friendly energy bill last month, there was no particular scientific or economic reason for setting 36 billion gallons - six times what is used today - as America's renewable fuels requirement within 15 years.

But there was a political reason for that number: Senators wanted to one-up President George W. Bush, who had called for 35 billion gallons in his State of the Union message.


The choice is ours: Big Oil or Chavez?

In the coming century, the world will transition from cars that run on liquid fuels to cars that run on something else, perhaps electricity or hydrogen. Until then, we have a choice. Either support the "Big Oil" companies that are SEC and IRS regulated, traded on the major stock exchanges, contribute to our economy and national security, and whose employees are our neighbors, or butt into energy myths and stand by idly (gleefully?) while Hugo Chavez ejects "Big Oil" from Venezuela.

Peak Oil Linkfest -07/24/07

Cold sore - Russia's relations with the West

In early 2000, the UK embassy in Moscow took a bit of a gamble. They persuaded Tony Blair to make one of his first major foreign policy initiatives a meeting with the new face in the Kremlin and heir apparent, Prime Minister Vladimir Putin. At the time it was a bit of a shocker – a popular, powerful, top-level, democratically elected leader meeting with an unelected, unknown, KGB spy who was failing to manage a bankrupt country over-run by dodgy oligarchs.


Migrating to New Energy Paradigms Part 2 - The Economic Importance of Crude Oil

Peak Oil is defined as the point at which 50% of the world's oil reserves have been consumed, and 50% remain. We all understand that oil is important to the world economy, but just how important is it?

In October 2004 I attempted to answer this question on behalf of a client as part of that client's long range strategic planning process. The amount of work involved was fairly significant so I have chosen to rely on my findings of that time for the purposes of this article. There are two other reasons:


$100-a-barrel oil may be only a few months away

The $100-a-barrel oil that Goldman Sachs Group said would prevail by 2009 may be only a few months away.

Jeffrey Currie, a London-based commodity analyst at the largest brokerage firm, said that $95 crude was quite likely this year unless OPEC unexpectedly increased production and that declining inventories were raising the chances for $100 oil.


The future is solar; politics is ethanol

This seems like a good place to tout Robert Rapier's excellent recent post: "The future is solar." In it, he makes the very simple point that photosynthesis -- the means by which corn, rapeseed, switchgrass, etc. make energy from sunlight -- is not particularly efficient: "when an acre of rapeseed/canola is planted, we get about 0.06% conversion of the sun's energy into oil."


Falling dollar puts pressure on Opec

The falling US dollar is lowering the Organisation of the Petroleum Exporting Countries’ purchasing power by up to a third, making the powerful oil cartel more reluctant to increase production and cut prices.

Although oil is trading near last August’s record $78.65 a barrel, Opec calculations show that, when adjusted for the weaker dollar and inflation, an average of the 12 Opec members’ crude oil prices has fallen in the past year.


British teach less Churchill, more global warming

Once upon a time, the British curriculum was straightforward. There was math, English, science. You learned about Winston Churchill, how to locate Greece, and how to say "My name is John" in French.

But starting next year British teenagers will face an exotic range of new disciplines designed to equip them with more practical skills. Healthy cooking, personal finances, and global warming are in. Charles Dickens, Jane Austen, and the Battle of the Nile may be nudged out.


Nigeria: Tackling the Niger Delta Crisis

From being prided as the region that lays the golden egg for the nation, the Niger Delta gradually slipped into the abyss of underdevelopment and environmental pollution. Today, it has metamorphosed into a zone characterised by militancy, pipeline vandalisation and hostage-taking for ransom. This region that accounts for only about 7.5% of Nigeria's landmass has become a top priority of the President Umaru Yar'Adua's administration, having been similarly prioritised by the regime of former President Olusegun Obasanjo.


The Future of Thought in the Oil and Gas Industry

When I joined Shell Development in January 1983, I was among a group of 11 Ph.D.s, engineers and physicists hired from the best U.S. universities. I entered a venerable research organization shaped by none other than M. King Hubbert, who led Shell Development for 20 years. Over its history, this organization gave the world Hubbert’s peaks and the notion of resource limitations, W. R. Purcell (capillarity), G. E. Archie (modern petrophysics), M. A. Biot (modern geophysics), J. Handin (rock physics), and many others.

Candidates@Google: Ron Paul

Ron Paul Interviewed at Google on July 13, 2007

Peak oil Linkfest - 07/13/07

President: Iran not to halt uranium enrichment work

Iran's President Mahmoud Ahmadinejad says the West should not expect his country to suspend uranium enrichment. He made the comment as a delegation from the UN nuclear watchdog arrives in Tehran.


Reader Mail: Peak Oil, Global Economy Shifts Away From US Towards Asia

Some questions about Peak Oil from a reader. And by the way, while we don’t always have space to publish your questions and comments in the e-mail edition of the Daily Reckoning, there is plenty of room in the comments section under any post on the website. You can respond directly to other readers, too. Here’s a question:


Play peak oil before you live it

On April 30, 2007, an oil crisis shook the world. Supply chains were interrupted, and in the ensuing weeks the price of gas pushed higher and higher, peaking around $7 per gallon. The American economy sputtered to a halt as shortages spread -- Detroit's car factories cited lack of demand and shut down for the duration, trucking fleets scrambled for fuel to move their cargo, supermarkets jacked up their prices, and commuters bitched and moaned and grudgingly changed their lifestyles. Looting broke out, along with the occasional riot.


IEA boss denies and confirms peak oil in same breath

It seems that the International Energy Agency, the intergovernmental energy watchdog, has been going in overdrive lately. First, we had the interview of its chief economist warning us that we were going toward a wall without Iraqi oil, then the recent publication of their yearly outlook report predicting shortages within 5 years, and now we have another disquieting interview in Le Monde, the big French daily, with Claude Mandil, the head of the Agency, who pulls no punches, despite an apparent denial of "peak oil". Follow me below the fold for a translation.


OPEC says no plans for increased production; crude prices continue upward

Light, sweet crude for August delivery was up 99 cents a barrel to trade at $73.55 midday on the Nymex. London Brent crude made its way above $76 a barrel before settling at $75.44 a barrel – up $1.36.


Why does Kuwait keep its oil reserves secret?

Kuwait's Acting Oil Minister Mohammad Al-Olaim has reaffirmed the oil reserves at 100 billion barrels under the pressure from the members of parliament.

Some lawmakers had threatened not to pass this year's budget, which is with a projected deficit of around 10.3 billion U.S. dollars, if the oil sector didn't tell them the truth about the country's oil reserves.


Global Warming May Spawn Floods of Beaches and Cities

Global warming may spawn more flooding at northeastern U.S. beaches and cities and disrupt the ski industry unless heat-trapping emissions are curbed, scientists said in a report.


'Swindle' director hits back at critics

THE director of a controversial documentary about global warming airing on ABC television tonight says he's been vilified for challenging popular theory.

Briton Martin Durkin directed The Great Global Warming Swindle, which seeks to debunk the idea that climate change is being caused by human activity.


The Peak Oil Crisis: A Tale of Two Reports

In the last few days, two important reports on the prospects for world oil production were “released.” While these reports reach diametrically opposite conclusions, each of them, in its own way, is likely to make a contribution to the debate over just when the economic troubles occasioned by the peaking of world oil production will occur.


Platts Survey: OPEC Oil Output Up Slightly in June, Well Above Target

The 10 members of the Organization of Petroleum Exporting Countries (OPEC) bound by the group's crude oil output agreements boosted production by 40,000 barrels per day (b/d) to 26.6 million b/d in June, from a revised May level of 26.56 million b/d, a Platts survey showed July 11. This is well above the 25.8 million b/d production target set in February by the so-called OPEC-10.


Net Oil Exports and the "Iron Triangle"

As Matt Simmons pointed out several years ago, the critical problem with post-peak exporting regions is that we would have two exponential functions (declining production and generally increasing consumption) working against net exports. From the point of view of importers, it is quite likely that we are facing a crash in oil supplies. In my opinion, what I have described as the “Iron Triangle” is doing everything possible to keep this message from reaching consumers.


U.K. Parliament Members Form `Peak Oil' Study Group

The U.K. parliament formed a group to study peak oil, the theory that world oil production is approaching its zenith, as British lawmakers face up to the country's future as an energy importer.

The All-Party Parliamentary Group on Peak Oil and Gas, which held its first meeting June 26, comprises 32 members of the House of Commons, or lower chamber, and seven from the House of Lords, or upper chamber.


Ethanol Boondoggle: Your Taxes at Work

In recent years, the price of gasoline has soared as the supply of crude oil has risen in response to unprecedented global demand. But never fear, Uncle Sam is here! Citing the need to decrease our country’s dependence on foreign and potentially unreliable sources of energy, Congress, encouraged by President Bush, has passed laws mandating that ever-greater quantities of corn-based ethanol (CBE) be produced, and subsidizing this production with tens of billions of dollars. Could it be that our leaders are finally demonstrating bipartisan unity for the good of the country? Well, “unity,” yes, “good,” no.


The Coming Conflict in the Arctic

Russian President Vladimir Putin and U.S. President George W. Bush spent most of their time at the “lobster summit” at Kennebunkport, Maine, discussing how to prevent the growing tensions between their two countries from getting out of hand.

The media and international affairs experts have been portraying missile defense in Europe and the final status of Kosovo as the two most contentious issues between Russia and the United States, with mutual recriminations over “democracy standards” providing the background for the much anticipated onset of a new Cold War. But while this may well be true for today, the stage has been quietly set for a much more serious confrontation in the non-too-distant future between Russia and the United States – along with Canada, Norway and Denmark.


Climate Expert Questions Gore's Global Warming Campaign

This past weekend concerts took place around the world to focus attention on the problem of global warming, which former U.S. Vice President Al Gore says is the greatest single threat facing humankind today. Most of the world's scientists agree that it is a problem and that it is largely caused by human use of fossil fuels, which produce so-called greenhouse gases that trap the Earth's heat. Al Gore and scientists who wrote the United Nations report on climate change say the debate is over and the time has come to act. But some prominent climate scientists are objecting to that, claiming that the debate has yet to even begin. VOA's Greg Flakus recently spoke to one of them and filed this report from Fort Collins, Colorado.


The biofuel myths

The term "biofuels" suggests renewable abundance: clean, green, sustainable assurance about technology and progress. This pure image allows industry, politicians, the World Bank, the United Nations and even the International Panel on Climate Change to present fuels made from corn, sugarcane, soy and other crops as the next step in a smooth transition from peak oil to a yet-to-be-defined renewable fuel economy.


Kuwait and IEA Show Declining Oil Production Future

Crude oil prices could reach levels of US$100 per barrel or more if some of the latest production factors in the news become reality.

Not only has the Paris-based International Energy Agency (IEA), the energy watchdog of the Organisation for Economic Co-operation and Development (OECD) countries, warned in its latest medium-term oil market report that a market crunch is looming over around 2012, but some OPEC producers are breaking even more negative news. After a short analysis hype in the beginning of 2006, analysts have been forgetting to cover OPEC countries currently battling reserve issues.


Peak Oil Now?

Demand for oil is continuing to grow, and threatens to burn up excess oil capacity by 2012, according to a new report released today by the International Energy Agency.

Excess capacity in OPEC is forecast to drop by 2 million gallons per day by 2009, and to virtually zero out by 2012. It won’t take until 2012 — or 2009 for that matter — for the cost of that tight supply to ripple through the economy straight down to the American homeowner and car driver.

Leading the Cause of Freedom in Iowa

http://www.ronpaul2008.com

Busted! Illegal Business Operation

Hilarious clip on Taxes.

Dr. Ron Paul Debate After Party

here are the 3 spammers who are spamming the online polls on behalf of Dr. Ron Paul

Energy Links Jamboree - 05/31/07

Commodities: Jeff Rogers Says ''We're In A Commodity Super-Cycle''

Were in a commodity super-cycle according to Jim Rogers and others. The super-cycle describes periods of unprecedented demand for commodities triggered by the rapid development of a major new industrial power. Once it was Britains Industrial Revolution, more recently the industrial expansion of the United States and today, the industrialisation of China. Given the country is home to some 1.3bn souls, its a fair bet were witnessing the most spectacular commodity super-cycle yet...

Is Water the Next Oil?

Is water the next oil? Motives behind the question vary, depending on who asks the question.

Those who see water as a future core commodity – therefore as profitable a prospect as oil – pose the question to create the right market conditions for water trade. Those who see the potential for conflict arising from scarcity compare diminishing freshwater to oil’s depleting reserves. Those who see an environmental threat from mismanagement of water see parallels with the abuse and waste of oil.

On the likelihood of peak oil

This is the fifth time that the world is said to be running out of oil. Each time ... technology and the opening of new frontier areas has banished the specter of decline. There is no reason to think that technology is finished this time. — Daniel Yergin

Prophesy is a good line of business, but it is full of risks. — Mark Twain

Charges Iraq Invasion Was to Keep Lid on Oil Production

Iraq was invaded in order to limit its oil production and thus keep world oil prices artificially high, a noted investigative journalist reports.

"Iraq's output in 2003, 2004, and 2005 was less than produced under the restrictive oil-for-food program," writes Greg Palast in his new book Armed Madhouse (Plume). Oil-for-food allowed Iraq to sell 2 million barrels per day during the 1995 to 2003 period.

G-8 Threatens New Measures Unless Iran Halts Nuclear Enrichment

Foreign ministers from the Group of Eight industrialized nations have renewed calls for Iran to stop nuclear enrichment activities or face "appropriate measures."

The G-8 foreign ministers of Britain, Canada, France, Germany, Italy, Japan, Russia and the United States Wednesday admonished Iran for ignoring the United Nations deadline to stop the sensitive nuclear work.

NASA Administrator Michael Griffin Not Sure That Global Warming Is A Problem

NASA Administrator Michael Griffin tells NPR News that while he has no doubt "a trend of global warming exists, I am not sure that it is fair to say that it is a problem we must wrestle with."

In an interview with Steve Inskeep airing tomorrow on NPR News' Morning Edition, Administrator Griffin says "I guess I would ask which human beings - where and when - are to be accorded the privilege of deciding that this particular climate that we have right here today, right now is the best climate for all other human beings. I think that's a rather arrogant position for people to take."

The Peak Oil Crisis: Preparing For Depletion

News on the gasoline stockpile situation was delayed this week due to the Memorial Day holiday. As gasoline consumption figures over the long weekend won’t be available until the middle of next week, we may get a better insight into prospects for this summer then. While waiting, however, it seems like a good time to start thinking a bit about the years ahead and what we should be doing to get ready for them.

China to Begin Using Methanol in Autos After 2010

A report regarding alternative fuels in China will encourage the use of fuel methanol as an alternative to fossil fuels in the country's auto industry, an expert who was involved in the drafting of the report said yesterday.

The draft, which was finished recently, is the conclusion of half a year's research into China's possibilities for alternative energy. The research was initiated by the National Development and Reform Commission and jointly carried out by the Ministry of Science and Technology, the Ministry of Health, the State Environmental Protection Administration, the Forestry Administration and 10 experts from the oil and automobile industries.

Peak Oil Test Looming

Gradually rising prices are accompanying a gradual peaking of oil production and pointing to investment opportunity in buy-recommended oil and gas producers including ConocoPhillips (COP), XTO Energy (XTO) and Occidental Petroleum (OXY).

World oil production may have already peaked at about 85 million barrels daily (mmbd) where it has been stuck for the past year (see chart Global Oil Production, below). With current demand near 86 mmbd, the difference has been made up by declining inventory.

Global warming, peak oil, and coal-to-liquids

There is no better reminder of the perils of the end of the cheap gasoline era than the article in today's New York Times, ""Lawmakers Push for Big Subsidies for Coal Process," i.e., coal-to-liquids. This is the process that converts coal to diesel fuel, and while doing so, according to the NYT, emits 119 percent more greenhouse gases than conventional diesel. (David discussed the article this morning.)

Merkel to press Bush on global warming

Chancellor Angela Merkel will meet with President George W. Bush before the Group of 8 summit meeting next week in an effort to prevent the talks from ending in failure over how to tackle global warming, officials said Tuesday.

Energy - new Russian missile?

As it plays an increasingly larger role in the relationship between Russia and its neighbours, is energy supply a way of seeing who is in control of the region?

Is the Kremlin on the verge of a nervous breakdown? The 26 April dismantling of a Soviet war memorial statue in Tallin recently provoked a diplomatic crisis between Estonia and Russia. This has resulted in the transport suspension of oil products originating in Moscow, and being brought by rail into the small Baltic republic of Estonia. Russian officials blame scheduled railway reconstruction work as the official reason for the suspension.

GOP straw poll: Election 2008

Energy Links Jamboree - 05/21/07

International oil companies could receive sole control of Iraq's oil

A representative for Hands Off Iraqi Oil (HOIO) said that an Iraqi oil law could mean that international companies may receive full control of Iraqi oil fields for more than two decades, Iraq Directory reported.

It was also mentioned that Shell Company has been working hand in hand with the United States and Britain to arrange an international policy to permit multinational companies to receive solitary control of Iraq's oil fields.

Green ETFs: Good Cause Doesn't Always Produce Better Performance

As the price of energy continues to rise there is going to be more demand for alternative options and that includes ETF investing. For the past few weeks, the hottest topic has been "green" investing (we've provide a list of some of the articles below).

There are a handful of “green” ETF options currently available for investors and more are likely to follow. There is still relatively little money in the ETFs, the two largest have about $22 million in assets each.

Oil above $70 on Nigeria attack

Oil climbed above $70 a barrel on Monday, extending an earlier gain, after a fresh attack on the oil industry in Nigeria, the world's eighth largest exporter.
Gunmen attacked an oil facility in Nigeria operated by France's Total on Monday, sources at private security companies said.

China and USA in New Cold War over Africa’s Oil Riches

To paraphrase the famous quip during the 1992 US Presidential debates, when an unknown William Jefferson Clinton told then-President George Herbert Walker Bush, “It’s the economy, stupid,” the present concern of the current Washington Administration over Darfur in southern Sudan is not, if we were to look closely, genuine concern over genocide against the peoples in that poorest of poor part of a forsaken section of Africa.

Peak coal: sooner than you think

Coal provides over a quarter of the world’s primary energy needs and generates 40 per cent of the world’s electricity. Two thirds of global steel production depends on coal.

Global consumption