Is this Why There's $37 Oil?

My neighbor, Clayton, has forwarded this email about the discovery of 3 to 4.3 billion of barrels of oil in North Dakota, 25 times a 1999 estimate. Note that the USGS says 3 to 4.3 billion barrels but the e-mail says 500 billion barrels. If someone called me an oil man, I would have to disagree, but 3 billion is a long way from 500 billion. The e-mail goes on to cite the Stansberry report that claims a 2 trillion barrel discovery in the Rocky Mountains:

"Hidden 1,000 feet beneath the surface of the Rocky Mountains lies the largest untapped oil reserve in the world — more than 2 TRILLION barrels. On August 8, 2005 President Bush mandated its extraction. Three companies have been chosen to lead the way. Test drilling has already begun..."

This claim is based on the region's deposits of large amounts of oil shale, the extraction of which is still experimental. Stansberry states:

"Companies are coming up with ways to extract oil from the Green River Formation very cheaply."

However, the run-up in oil prices to $147/barrel occurred after this was known. Therefore, the markets don't seem to be taking it seriously. Or are they?

According to the USGS:

"The Bakken Formation estimate is larger than all other current USGS oil assessments of the lower 48 states and is the largest "continuous" oil accumulation ever assessed by the USGS. A "continuous" oil accumulation means that the oil resource is dispersed throughout a geologic formation rather than existing as discrete, localized occurrences. The next largest "continuous" oil accumulation in the U.S. is in the Austin Chalk of Texas and Louisiana, with an undiscovered estimate of 1.0 billions of barrels of technically recoverable oil."

Clayton's e-mail suggests that the Democrats have been blocking recovery of the shale oil, forcing up gasoline prices.

THINK ABOUT THIS THE NEXT TIME YOU FILL UP AT THE GAS STATION.

>You don't & won't see this on any of your nightly news casts. This IS news! Why do you think they won't report it?

>http://www.usgs.gov/newsroom/article.asp?ID=1911

>The U.S. Geological Service issued a report in April ('08) that only scientists and oilmen knew was coming, but man was it big. It was a revised report (hadn't been updated since '95) on how much oil was in this area of the western 2/3 of North Dakota; western South Dakota; and extreme eastern Montana ... check THIS out:

>The Bakken is the largest domestic oil discovery since Alaska's Prudhoe Bay, and has the potential to eliminate all America an dependence on foreign oil. The Energy Information Administration (EIA) estimates it at 503 billion barrels. Even if just 10% of the oil is recoverable... at only $50 a barrel, we're looking at a resource base worth more than $2.5 trillion. Gasoline would be less than $2.00 a gallon for the rest of yur life.

>'When I first briefed legislators on this, you could practically see their jaws hit the floor. They had no idea.' says Terry Johnson, the Montana Legislature's financial analyst.

>'This sizable find is now the highest-producing onshore oil field found in the past 56 years,' reports The Pittsburgh Post Gazette. It's a formation known as the Williston Basin, but is more commonly referred to as the 'Bakken.' And it stretches from Northern Montana, through North Dakota and into Canada. For years, U.S.oil exploration has been considered a dead end. Even the 'Big Oil' companies gave up searching for major oil wells decades ago. However, a recent technological breakthrough has opened up the Bakken's massive reserves... and we now have access of
up to 500 billion barrels. And because this is light, sweet oil, those billions of barrels will cost Americans just $16 PER BARREL!

That's enough crude to fully fuel the American economy for 41 years straight.

2. And if THAT didn't throw you on the floor, then this next one should because it's from TWO YEARS AGO, people!

U.S.Oil Discovery- Largest Reserve in the World! Stansberry Report Online - 4/20/2006Hidden 1,000 feet beneath the surface of the Rocky Mountains lies the largest untapped oil reserve in the world is more than 2 TRILLION barrels. On August 8, 2005President Bush mandated its extraction.

They reported this stunning news: We have more oil inside our borders, than all the other proven reserves on earth. Here are the official estimates:

-8-times as much oil as Saudi Arabia
-18-times as much oil a s Iraq
-21-times as much oil as Kuwait
-22-times as much oil as Iran
-500-times as much oil as Yemen - and it's all right here in the Western United States.

HOW can this BE? HOW can we NOT BE extracting this!? Because thedemocrats, environmentalists and left wing republicans have blocked all efforts to help America become independent of foreign oil.

James Bartis, lead researcher with the study says we've got more oil in this very compact area than the entire Middle East -more than 2 TRILLION barrels. Untapped. That's more than all the proven oil reserves of crude oil in the world today, reports The Denver Post.

Don't think 'OPEC' will drop its price - even with this find? Think again! It's all about the competitive marketplace, - it has to.

Got your attention/ire up yet? Hope so! Now, while you're thinking about it ... and hopefully P.O'd, do this:

Pass this along.. If you don't take a little time to do this, then you should stifle yourself the next time you want to complain about gas prices .. because by doing NOTHING, you've forfeited your right to complain.

And, which politicians were saying "...drilling for oil in the U.S. would just be a waste of time... "and "...why don't the oil companies start drilling on the land they already have under lease options..??"

Now I just wonder what would happen in this country if every one sent this to every one in your address book.

Sex and the Oil Barrel

The Wall Street Journal reports that depression fears and continued OPEC production have driven oil prices to four year lows. The pro shares ultra oil and gas etf (DIG) which holds oil company stocks (Exxon is 23% of its holdings) and is 50% leveraged (in other words "The fund seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the Dow Jones U.S. Oil & Gas Index") was down 11.7% yesterday.

Few can disagree that buying at a bottom is better than sex. But how far does the oil barrel need to "go down" before we conclude there is a market bottom? The Journal says that this a four-year oil low. Despite the drop from $145.29 to $38, a 74% drop that rivals the tech stocks' fall seven years ago, I would rather be holding oil barrels than dollars, given the hyperinflationary policies of the Reinflateocrat Party!

Back in April '01 I put in a buy for the then QQQ (now QQQQ) for $35. My student, a professional trader who specialized in the Q's, argued that it would never fall that low. In fact, it did, right after 9/11. It ended up falling to something like $17, but then came back to the '40s. Now, in memory of the Q's, should I put in a buy on an oil fund at $35/barrel???

Raquel Okyay on Oil

Raquel Okyay points out that close to 70% of voters agree with Senator McCain:

"that the ban on offshore drilling should be lifted to ease the price of oil. Leading Democrats are still trying to prevent oil companies from offshore drilling, even with the high poll numbers against them."

Okyay points out:

"We want drilling because it makes sense to exploit our own resources instead of paying for oil elsewhere. There is a way to accomplish this goal without losing sight that renewable energy is the way of the future. Pelosi apparently has other things on her mind when determining whether offshore..."

The oil debate is an example of how America's commitment to socialism has crippled it economically. There ought not to be public debate concerning how to best obtain energy. The reason that we do not use alternative energy is that state and federal policy has inhibited the building of wind mills and has made risky investments difficult to make through regulation, inflation, taxes and other penalties to inventors. America becomes increasingly poorer as our Congressional Neros fiddle in Washington, dabbling in oil investing and exploration, subjects about which they know little. It is time to de-regulate the energy markets and stop penalizing inventors by taxing and harassing them when they succeed.

Are Left-Wing Speculators Causing the Run-Up in Fuel Prices?

A friend who is interested in gold and commodity investing just questioned whether well-heeled left wing or Democratic speculators might be causing a run-up in oil prices as part of a concerted anti-Republican campaign. I wonder if that argument has any merit. Is there an ideological component to the recent run up in oil prices?

Keywords: George Soros, Hollywood, oil prices, speculation, Republican Party, presidential campaign