some views on oil, page-2

Further comment from that Daily Reckoning newsletter about the future price of oil follows on from the earlier section in my lasy post on this subject.

"--Both the International Energy Agency and the International Monetary Fund agree. IMF deputy managing director John Lipsky says, "The lower that oil prices drop now and the longer they stay low, the greater the negative impact on future supply...In other words, today's low prices could be setting the stage for another price run-up in the future."

--No one is interested in the oil story from an investment angle right now. That's what makes us so interested. Industry insiders couldn't be more clear about what they think is coming. And we think that means a big move in oil and oil stocks. You can read more about it here.

--Houston based oil man Matt Simmons says, "We are three, six, maybe nine months away from [an oil] price shock...We are not talking about three to five years away -- it will be much sooner...These prices now are dangerously low. The lower prices fall, the less oil will be produced and the greater the chance of an oil spike."

--"Unless oil demand falls by 10% or 15% per annum, which it is not going to do, then we don't need to wait for oil demand to come back before we have a supply crunch. Within a few months, we are going to realize our visible inventories are really tight -- squeaky tight -- and what would really be inconvenient is to see a recovery in the economy."

So the problem with low oil prices is certainly that projects have been delayed and a number of explorers all around the world have been hit hard and stretched in their efforts and their finances (just as QPN has /is).

The hope is that QPN and its partners can continue to get Bullseye producing well so that it can take advantage of the oil spike that is coming on the horizon.