1 Trillion Barrels of Oil? Good Luck Getting It!!!
Iran has suggested that it might ‘temporarily’ suspend uranium enrichment – on its own terms. So while Ahmadineja toys with the rest of the world like a drunken cat with a ball of yarn…tensions ease.
The massive Atlantic hurricanes that were supposed to smash us to bits have disappointed the doom and gloom crowd…but still managed to rack up some serious advertising dollars for CNN.
And of course we had Chevron’s announcement last week that forced some to throw around a very irresponsible 15 billion barrel figure.
So everybody jump for joy…right?
Well not to rain on anyone’s parade, but this early Christmas gift isn’t going to last – and it has no return policy!
Despite a more than $10 drop in oil prices over the past few weeks, the EIA is still predicting an average of near $70 for the rest of the year.
I think they’re wrong. I think we’ll be back up over $70 by the end of the year. And thanks to a recent Saudi ‘cry for help’ – I’m feeling even more confident with this prediction.
1 Trillion Barrels in 25 years???
Abdallah S. Jum’ah, president and CEO of the Saudi Arabian Oil Company (Aramco), recently told Saudi oil execs that the world has a potential 4.5 trillion barrels of oil in reserves, and that the world has only consumed about 18 percent of its conventional potential.
Now Jum’ah has challenged oil ministers and petroleum executives to step up exploration through a new “era of continued economic advancement” and find new oil resources to add 1 trillion barrels to world reserves over the next 25 years.
Translation – “Somebody, quick – help me figure out a way to get this oil, which we have no way to verify actually exists…and fast!”
Look, first off, any ‘oil data’ coming out of the slippery halls of Aramco is nothing less than questionable.
These guys have been making all kinds of promises over the past few years – and none have measured up to the hype.
Remember when Aramco pledged an extra 500,000 barrels of oil in 2004 and an extra 5 million bpd by 2012? Turned out that only 2.5 million barrels would be added to output.
Now we’re supposed to believe that they’ll be able to dredge up another 1 trillion barrels?
Believe it if you want…but if we’re serious about getting off foreign oil – we better crank it up soon. Because when the largest oil-producing nation starts throwing around this kind of fear-driven rhetoric (which is exactly what this is)…prices are going through the roof and the fit’s going to hit the shan!
From Capital Hill to Wall Street, there have been a hundred and one ‘possible’ solutions to weaning ourselves off foreign oil. Some good…some bad…and some completely ridiculous.
Now listen. I’m not saying I’m an expert in this. Not even close. But I would like to show you something today that you may find interesting. And if you don’t – perhaps you’d be interested in moving straight to the Middle East…where being a slave to the oil peddlers would be less of a long-distance undertaking.
Despite a brief respite in gas prices, Americans will soon be reminded again that our dependence on foreign oil is a dangerous one.
So you want a solution? How’s this…
By the year 2025…if all the cars on America’s roads are hybrids…half of which are plug-in hybrids, the U.S. could displace 8 million barrels of foreign oil a day. Make sure these cars are flexible fuel vehicles, and that number hits 12 million barrels per day.
That’s how much we import today!!!
Throw into the mix, biodiesel for trucks, plug-in hybrid transit and school buses and even hybrid locomotives that cut fuel consumption by 40% – and we’re well over that 12 million barrel mark.
(Incidentally, the hybrid locomotive market is becoming increasingly attractive to rail markets as ethanol demand continues to rise.)
Of course, none of this is going to happen overnight. But while Saudi charlatans continue to parade holographic promises in front of our faces, savvy investors know that this is the time to load up on those companies that’ll soon be expected to fill the empty oil troughs with some homegrown alternatives.
Oil prices have taken a breather, and the sheep are getting right back in line. But their slaughter will make for a hefty feast. And you better believe…we’re hungry!
For more on the renewable energy solutions to foreign oil dependence (and fewer metaphors), visit Green Chip Stocks today!