Matt Simmons and Jim Puplava Interview
NH3 or liquid ammonia may be a solution for the energy crisis. Listen as Matt and Jim discuss issue.
Warren Buffett and Bill Gates at Columbia University. Hosted by CNBC Becky Quick.
I watched this last night on TV and am looking for the entire show to be downloaded on YouTube. The show was definitely insightful although I was a little taken aback by the hero worship and fawning that occurred at the start.
Once again I am impressed at the availability of high quality free information available on the internet–most specifically YouTube.
In this clip Jeff Rubin, the former Chief Economist at CIBC World Markets talks with Allan Gregg about his new book “Why Your World Is About to Get a Whole Lot Smaller: Oil and the End of Globalization.”
He offers a more positive spin then most discussing the many positive aspects of moving production of the things were need to buy closer to where we live. Essentially “Distance Will Cost Money” is the central tenet of the book.
Gone will be the days of Norwegian Salmon being sent to China for processing and then to North America to be sold as “Fresh Salmon”. Steel will have to produced more locally as cheap labor costs will just not be enough. Air travel will be a luxury and it doesn’t matter if it is for passenger travel, business or air freight. It will start to look a lot more like the 1960’s and 1970’s.
In an interesting prediction he says a barrel of oil will be triple digits within the next 12 months—probably sooner.
Enjoy the video.
Maybe America doesn’t like it but they need the oil that the tar sands produces. If the pipeline from Fort McMurray to the west coast is built then that oil will go to Asia.
The oil will be produced whether they like it or not so you might as well stop complaining about it.
No Doubt that in 10 years oil will be 300 dollars per barrel. He quips that America will be able to solve 2 of their problems if oil reaches 300 per barrel—health care and education. If oil reaches that level they won’t have the money to fund either one of them particularly if they are importing 70% of their energy need at that time.
This video was floating around the trade room today which sort of caught me off guard. Generally this crew are not gold bugs or even inflationists so to see them actually watching and discussing the issues brought up in the round table was a surprise.
A little background would be good for the reader here. Generally these days I do not discuss my opinions regarding Peak Oil (believer!) and inflation (rising!), Gold (long!) as no one really follows it. hard to believe that some of these guys are the “smart money” that is discussed in the media from time to time. In there defence they are not idiots and when they figure it out some of them will make a crapload of money off of the situation—so don’t discount them!
I found Jim Rickards analysis interesting with regard to the price of gold. Gold will hit 2,000 without breaking a sweat in 2010. If the market decides that gold is money then a proper valuation for gold is between 4,000 and 11,000. The latter is eighth grade math taking the price of gold and dividing it by the money supply.
The video with Matt Simmons, Jim Puplava and the Reuters article speak for themselves. Despite the recent economic weaknesses we are starting to see supply shortages in Energy.
China provinces hit by severe gas shortage – report
17 Nov 2009 05:13:40 GMT
Source: Reuters
BEIJING, Nov 17 (Reuters) – Central and eastern Chinese provinces faced the worst natural gas shortage in years as supplies were diverted to snowstorm-hit northern China, while producers lacked incentives to expand output because of poor margins, a state broadcaster said on Tuesday.
Gas supplies for taxis in Wuhan, capital of the central province of Hubei, were halted from Monday while 11 industrial companies in Hanzhou, capital of eastern Zhejiang province, were shut as a result of gas shortages, China National Radio said.
The gas shortage in Wuhan reached 600,000 cubic metres per day and pressure in the gas pipeline was at only half the usual level, it said. Wuhan’s government was providing a 100-yuan-per-day subsidy for taxis as drivers switched to more expensive petroleum, the report said. It said the gas shortage in Hanzhou was expected to worsen as the city lies near the end of the west-east gas pipeline that pumps the fuel from remote northwestern China to energy-thirsty regions in the east. The supply deficit in Nanjing, capital of eastern Jiangsu province, had reached 400,000 cubic metres per day, 40 percent of its planned consumption volume, according to C1 Energy, an industry information provider. Emergency measures to curb consumption had also been taken in other cities including Chongqing, Rizhao, Xi’an, Yichang and Yangzhou, but demand was set to rise further because of expected colder weather, C1 Energy said.
Unseasonably early and heavy snow in northern China had caused 38 deaths as of last Friday and a surge in energy demand. The power load on the Northern China electricity grid surged to a high of 127.5 gigawatts this month, 26 percent higher than a year earlier. On the Beijing-Tianjin-Tangshan grid networks, the load increased 24.7 percent from a year earlier late last week. China, which keeps rigid controls on gas prices, is expected to raise natural gas prices under a new pricing regime due to be in place in January. The move follows its last review in 2005, when Beijing linked the price of the fuel with coal and crude oil.
The radio report attributed the reason for gas shortage to the failure of the pricing mechanism, citing an unnamed official with CNPC, China’s largest gas producer. (Reporting by Jim Bai and Chen Aizhu; Editing by Chris Lewis)
Marc Faber is a guest host on RobTV in Canada and provides phenomenal insight into the inflation deflation debate that is raging across the airways at the moment. Yes there is some improvement in some sectors, but there is a problem. There is a disconnect between the real economy and the financial economy.
He says it best and I recommend that you watch him on this video rather than read my drivel. If you are searching for this information and actually found me then you probably suspect that there is something wrong. You are right! Don’t take my word for it. Listen to the many interviews that I have posted from investors, speculators and commentators that I have posted on this site.
I believe that you will not be disappointed!
Part 1
Part 2
Part 3
Part 4
The videos speak for themselves and I highly recommend that if you haven’t seen a Jim Rogers interview then view these four.
He reviews the problems the US faces and what will likely happen—remember he co-founded the Quantum Fund with George Soros and retired 10 years later at age 37 with 30 million plus. This was back in the early 1980’s when 30 million was a lot of money. He retired ahead of the game—traveled the world and continues to invest. George Soros continued to invest and is now a billionaire.
I have always thought that Jim Rogers could have been much more wealthy but chose not to. You have to admire traders who are successful and get out at the top of their game. There are too many traders who are past their time and end up as road kill. John Merriwhether and Jessie Livermore come to mind.
In these interviews he switches easily between the dollar, sugar, coffee, cotton, orange juice, oil, and provides insight into each—and no we are not in a bubble. I cannot recall him ever mentioning that oil is in production decline—only that the demand characteristics for oil were positive—if I missed something please advise.
Part 1
Part 2
Part 3
Part 4
Let’s look at the market from a more short term view—days and weeks instead of months and years.
I read the Gartmen newsletter daily and find it fascinating as he tries to find the various twists and turns in the markets ranging from commodity to energy to the stock and bond markets. His reputation is mixed in my office — I work in a Capital Markets environment—but I find him a good barometer on trades that are becoming too crowded.
If anyone thinks that that is unimportant then you might as well stop investing or speculating now because you obviously do not undersand the flow of a market and unless you place stops on everything you are going to get screwed.
Half the fun of speculating or investing is going long or short of something based on your view. If going short worries you then just think about all the money that some people made when the dot com burst or oil dropped from 147. The profits are swift and violent.
Enjoy your introduction to Gartman!
CALGARY, ALBERTA–(Marketwire – Nov. 12, 2009) – BlackPearl Resources Inc. (”BlackPearl”
or the “Company”) (TSX:PXX)(FIRST NORTH:PXXS) is pleased to announce its financial and
operating results for the three and nine months ended September 30, 2009.
Highlights during the quarter included:
- Revenues of $24.1 million, a 9% increase over Q2.
- Cash flow from operations of $8.2 million.
- Strong balance sheet with $59.9 million in working capital and no debt.
- Initiated a 27 well drilling program at Onion Lake.
- Commenced road construction and completed the steam generator for the Blackrod SAGD pilot.
- Continued the successful polymer pilot at Mooney; 14% recovery to date.
- Reduced operating costs and administrative expenses.
John Festival, President of BlackPearl, commenting on 2009 activities indicated that “When the
new management group joined BlackPearl we felt the Company required a more operational focus.
Initially, our objective was to reduce operating costs and overhead expenses, strengthen the balance
sheet and prepare development plans for our three core properties. We have now completed this phase
of the restructuring and we are beginning the implementation phase. We have initiated a 27 well
drilling program at Onion Lake, filed our application for a SAGD pilot at Blackrod and have advanced
our plans for a polymer flood at Mooney. We believe those three projects have the potential of
providing up to 50,000 boe/day of production over the next few years.”
Commenting on third quarter results, Mr. Festival indicated that “Crude oil prices continued to
recover during the third quarter; however, as a result of the economic downturn prices were still
considerably lower than 2008. During Q3, we were able to increase cash flow as well as maintain
production in the 5,000 barrel/day range with limited new capital activity.”
Financial and Operating Highlights
—————————————————————————
Three months ended Nine months ended
September 30 September 30
2009 2008 2009 2008
—————————————————————————
Daily production / sales
volumes (1)
Oil (bbl/d) 4,247 4,417 4,263 6,594
Natural gas (mcf/d) 5,065 8,156 5,846 9,434
Combined (boe/d) 5,091 5,776 5,237 8,166
Product pricing
Oil ($/bbl) 58.38 95.85 47.76 77.68
Natural gas ($/mcf) 3.05 8.08 3.96 8.54
Combined ($/boe) 51.94 85.02 43.34 72.78
($000’s, except per share
and boe amounts)
Revenue
Oil and gas revenue -
gross 24,065 45,180 61,964 162,849
Royalties ($/boe) 14.25 22.51 10.16 18.26
Transportation costs
($/boe) 1.58 1.29 1.90 1.29
Operating costs ($/boe) 13.32 17.45 15.53 17.70
Net income (loss) for the
period (12,013) 1,926 (43,418) 4,824
Per share, basic and
diluted (0.05) 0.01 (0.18) 0.03
Cash flow from operating
activities, before
working capital
adjustments 8,221 21,020 14,328 68,496
Capital expenditures 6,240 39,480 10,319 74,597
Working Capital, end of
period 59,875 36,147 59,875 36,147
Long term debt – - – -
Shares outstanding, end
of period 261,684,050 189,241,716 261,684,050 189,241,716
(1) boe based on a conversion ratio of 6 mcf of gas to 1 barrel of oil.
Boes may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 mcf: 1 barrel is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
The 2009 third quarter report to shareholders, including the financial statements, management’s
discussion and analysis and notes to the financial statements are available on the Company’s website
(www.blackpearlresources.ca) or SEDAR (www.sedar.com).
Forward-Looking Statements
Certain of the statements made and information contained herein is forward-looking statements and
forward looking information (collectively referred to as “forward-looking statements”)
within the meaning of Canadian securities laws. All statements other than statements of historic
fact are forward-looking statements. Forward-looking statements are typically identified by such
words as “seek”, “anticipate”, “plan”, “continue”,
“estimate”, “expect”, “may”, “will”, “project”,
“potential”, “targeting”, “intend”, “could”,
“might”, “should”, “believe” or similar words suggesting future events
or future performance. In addition, statements relating to “reserves” or
“resources” are deemed to be forward-looking statements as they involve the implied
assessment, based on certain estimates and assumptions, that the reserves and resources described
exist in the quantities predicted or estimated and can be profitably produced in the future. In
particular, this document contains forward-looking statements pertaining to, and which rely on
assumptions as to, without limitation, business plans and strategies, capital expenditure programs,
operating costs, production levels and oil and gas prices.
Undue reliance should not be placed on forward-looking statements, which are inherently uncertain,
are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties
(both general and specific) that contribute to the possibility that the future events or
circumstances contemplated by the forward-looking statements will not occur. Although we believe
that the expectations conveyed by the forward-looking statements are reasonable based on information
available to us on the date such forward-looking statements were made, there can be no assurance
that the plans, intentions or expectations upon which forward-looking statements are based will in
fact be realized. Actual results will differ, and the difference may be material and adverse to the
Corporation and its shareholders.
BlackPearl’s Certified Advisor on First North is E. Ohman J:or Fondkommission AB.
Company Registration Number: 409596-1
The report for the year ending December 31, 2009 will be published on or before February 28,
2010.