oil crisis, page-5

Hi folks,

Like Mangrove said, the alternative energy plays
can be good for traders .....

..... even now, just look at PHY in windpower
and others like SGL in the CBM industry.

Power from "hot granite" is also being exploited
in Australia and could be a big deal for drilling
companies, in years to come.

-----

That report came out in 1995 and would not have
taken into account new technology that virtually
doubled the global oil reserves overnight ... that
is "white crude".

One plant in Indonesia has been making white crude
from natural gas, since 1994 ... and now with oil
prices at about US$30.oo bbl, then it is comparable
with drilling for new "black crude" oilfields.

When oil was price around US$10-15.oo bbl, then
it cost about $18.oo to produce a bbl of white crude,
but doing the sums today, the economics would stand
up much better.

..... and best of all, there's no nasties in white
crude, as it is sulphur free, which is a bonus for
some specific engine designs.

We can also see by the offshore rig counts, that
despite the sustained high price of black crude,
some fundamental shift has occurred to make
the oil companies spend less money on exploration.

..... it is thought, that rising white crude production
has contributed to this shift of resources, bringing
known gasfields online, in preference to digging
more wildcat wells.

Only 1 out of 12 categories in the global rig
count has been fully utilized this year and the
other 11 rig categories a well off their maximum
usage .....

So, to the doomsayers, it may take a little longer
for black crude to exit the scene than you may
imagine.

Meantime, new gasfields will receive a better
welcome, than they have received in the past.

happy trading

yogi

Beyond Gann - into a NEW dimension of TIME and PRICE

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