re: , page-36

re: Elliot Gue predicting $100 oil.

Now if he is right then things are looking good for NDO. Not so at the pump, but hey best way to pay for rising gasoline is by going long solid oilers.

A snippet from Elliott.

Now Im betting money -- my own money -- that oil prices will continue their upward march. Theyll hit up to $90 by summer and will be back into triple digits by the close of 2010.

The signs are everywhere, but here are the five major ones ...

1) Russia still excels at ticking off investors. Putin & Co. have huge, but mostly inaccessible, reserves in Siberia. And they've neglected this treasure due to an on-going "boycott" of investor money. Europe's investors don't like the nasty way the new commissars hold good energy customers for ransom. Many American investors don't like the way Russia has held NATO defense for ransom. Russian oil production could dwindle by a full third in the next few years if investors continue their snub. And I suspect they will.

2) Ever in the news, BP pulled out of the North Sea as once-bountiful reserves play out. Smaller operators still working North Sea wells cant afford the ultra-high-tech tools to squeeze these declining fields for the remaining drops.

3) OPEC can be relied upon to squelch production -- or withhold it from the market -- whatever supports the price threshhold they have in mind on any given day of the year.


4) Gulf of Mexico production was flagging even before the Horizon accident due to rising taxes, rising costs -- and skyrocketing insurance due to its status as Hurricane Alley. It may sound crass to trade on the headlines, but as investors we know that fewer drilling opportunities mean less supply and higher prices.

5) China's on one of the biggest oil grabs in modern history. They're in clandestine talks with Ghanaian officials to grab a huge chunk of the prize Jubilee oil field right out from under ExxonMobil.