Pressure is being brought to bare on the US authorities to authorise use of the Strategic Petroleum Reserve. This is a reserve of oil kept in the US for emergencies, where the existing supply of petroleum is under threat.
It does not take any great intellect to realise that the combination of unrest in Venezuela, and imminent military action in Iraq will spell disaster for the supply of oil. There is no way that OPEC can simply increase supply - the logistics require time to activate that increased supply, and in the case of Saudi Arabia (the most likely source), that supply will take three months at best, to reach the US.
With increased cost, and decreased availability, Indcor, a company which is a manufacturer of ethanol additive, and is listed on the Australian Stock Exchange, looks more and more attractive.
Ethanol is routinely added to petrol that is sold at the pump in Australia. Certain states (NSW, for example) add upto 20% ethanol by volume. The resultant mix is more envoronmentally friendly than straight petrol, and being manufactured locally, results in a substantial saving of foreign exchange.
The jury is still out with regard to the effect on the internal combution engine, of the petrol/ethanol mix, relative to straight petrol.
IMHO, Indcor has a fantastic future. I will not be surprised if Indcor is one of the stand-out stocks of 2003.
