Saturday, September 26, 2009

Peter Schiff: Gold Could Rise to $5,000 and More

As measured against gold, Peter Schiff said in a recent interview that gold and the Dow could end up trading at a ratio of one-to-one, as against the existing level of 9.7-to-1. Consequently, gold could very easily rise to $5,000 or more according to Schiff, over the next several years.

What that means is the Dow will plunge another 90 percent from where it stands now as measured against gold.

Even though gold has risen significantly, it's still being held back by concerns that will eventually fall away when it starts climbing from between $2,000 and $3,000 an ounce.

Schiff said it could take on similar growth as tech stocks did in 1999, possibly moving up in $100 increments a day at many points.

Much of Schiff's view on gold is based on the misguided policies of the Obama administration, along with the Federal Reserve, which refused to cut back on printing money and bailing out banks and companies they consider "too big to fail."

Norway Ready to Go to Gates of Hell for Oil

Norway Oil

Having explored the majority of its Norwegian shelf, Norway is looking to other more remote regions in order to remain a major player in the oil industry, which has largely paid for the welfare nation's lifestyle.

One area they're looking toward is a volcanic island in the Arctic with the strange name of Jan Mayen, which was at one time supposedly called the 'Gates of Hell,' based on the possibly true legend of being discovered by Brendan, and Irish monk, who when seeing the vulanic activity thought he had literally discovered the Gates of Hell.

Norway will find it hard to finance its welfare state if oil production continues to fall as it has recently, with estimates in this year alone dropping by 9.7 percent, according to the Petroleum Directorate. Oil and gas accounts for about 25 percent of the economic output of Norway at this time.

The first step will be to drill a shallow well outside of Jan Mayen to make an assessment on the geological structures in the area. Oil drilling in the region won't begin until about 2020.

Norway Oil

Wednesday, September 9, 2009

Brazil Finds Another Huge Oil Field

Brazil continues to increase its reputation as a major player in the oil business, discovering another major oil field, with estimates of up to two billion barrels of oil able to be recovered from it.

This oil discovery is called Guara, and is the result of the new techniques being used which can find oil under the salty sea bottom, which were undiscoverable before.

Estimates in the overall region is what is being called pre-salt reserves, cover a huge range, from a low of 60 billion barrels of oil to 150 billion barrels of oil.

There is no doubt that once the economic crisis begins to wane down, which could still be several years away, Brazil is poised to be come the major oil producer in the region, and as a result change the political and social structure of the region, as they become the largest Latin American provider of energy, overtaking the socialist foolishness of Hugo Chávez and his continuing destruction of Venezuela.

So far it is the largest area of oil discovered this century, and more than likely won't be the last, as the ocean floors are scoured for new oil fields that couldn't be seen in the recent past.

Monday, September 7, 2009

Everyone Drilling Oil but U.S.?

Oil Exploration and Drilling

It's extraordinary that countries around the world are drilling and pursuing oil, with the exception of off the coasts of America and within its borders as well, where billion's of barrels are sitting there because of the far left environmental activists pressuring Democrats, who refuse to ignore them and open up our land and coasts to the billions of barrels of oil already known to be available to us, along with the potentially huge, unknown reserves there for the taking.

I'm not saying American Oil Companies aren't drilling, just that they're not drilling off the coasts of the U.S., which would be very lucrative and helpful to the American economy and American people.

Bizarrely, the Obama administration continues to resist drilling off the shores of the U.S. while oil companies from other nations cash in, like BP from the UK did recently in the Gulf, where they found billions of barrels of oil recently, although it'll take time to know how much it is overall. They are also going to drill a second place in attempts to tap into even more reserves, while the U.S. oil policy is in shambles because of political special interests.

Even though Congress repealed the restrictions on 85 percent of American waters, the Department of Interior under the Obama administration hasn't issued one lease to an oil company for drilling and exploration.

Foolishly, the result will be continued dependence on foreign oil and whims, while we sit on potential resources that could help ween us from this foreign oil dependence in a big way.

Interestingly, the discovery of the Tiber oil by BP in the gulf recently has led some to believe it is a big piece of evidence that strengthens the abiotic theory of oil's origins.

The abiotic theory of oil asserts that any type of hydrocarbon, which includes gas and oil, is the result of natural chemical processes deep in the earth which rise through the fissures of the planet and is usually deposited in sedimentary layers beneath the surface.

What is hypocritical in all this is under the Obama administration, the U.S.Export-Import bank loaned $2 billion to Brazil's Petrobras for furthering their offshore drilling efforts. This gives support to billionaire George Soros, an avid Obama supporter, who owns a stake in Petrobras, which is a state-owned oil and gas company.

Oil Exploration and Drilling

Wednesday, September 2, 2009

BP in Big Oil Discovery in Gulf of Mexico

Oil Discovery BP

Drilling down to over 35,000 feet, BP Plc made a significant oil discovery in the Gulf of Mexico at the Tiper Prospect, with an estimate of over 3 billion barrels of oil found there.

The 35,000 plus foot drill is the deepest exploration well in history.

It is expected to be in production during the latter part of the next decade, and help BP bring oil production to about 600,000 barrels a day sometime after 2020.

According to BP's lead executive for exploration and production, Andy Inglis, this could increase production of the company between one to two percent from between 2013 and 2020. That of course depends upon how long it takes to get the oil field on line.

This is the second material discovery in what is called the Lower Tertiary in the Gulf of Mexico by BP. The other one was a smaller field named Kaskida. Kaskida is estimated to hold about 3 billion barrels of oil, and Tiber is bigger than that, said BP. Plans are in place to drill as second well in Tiber sometime in 2010.

According to BP, they are the largest net leaseholder in the Lower Tertiary area.

Oil Discovery BP