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"We will not stop using oil because we have run out - It will be because we will have found something better"

Sheik Ahmed Zaki Yamani - Saudi Arabian Minister for Petroleum and Minerals 1962 - 1986

Crisis = Opportunity - Ancient Chinese Proverb

0920 EDT Monday May 08, 2006

Good Morning: We decided to repeat Sheik Ahmed Zaki Yamani's proclamation, more because of the fact that we have to find something better is being forced upon the World at large and also because of the apparent leaking of what may or may not be entirely accurate, ie: That the much vaunted Saudi Reserves of 260 Billion Barrels of "virtually limitless supplies", may not be half of what they claim and that in of itself could be behind the sudden realization that a number of criteria are contributing to all time high price levels in Crude and Gasoline.

To be sure, before alternative measures are in place and the World can breathe a sigh of relief, Oil prices may have no limits on the upside in the event of unforeseen developments that could sharply curtail supplies, but the wake up calls of recent years, have finally gotten the World's attention and now the creative minds of the World are hard at work on all manner of ideas and technologies that in all likelihood will eventually replace much of the Crude Oil consumption of today. As we said a while back, we are in a race against time and while the view point that if we don't come up with some replacement soon, demand could sharply exceed supplies, necessity is the mother of invention and all things being equal, we'll probably eventually make a transition to the next generation of fuels. The Oil companies are locked in a status quo state of mind and that is regrettable, but just like the horse and buggy mentality, if they fail to recognize and capitalize on future trends, they will end up being left behind by new technologies. While they see their monopolies being threatened by hydrogen and ethanol, their attitude of wanting to drill for more Oil instead of finding a better solution to an increasingly atmospherically contaminated World is as criminally irresponsible a 'head in the sand' attitude as they are hell bent on extending their monopolies to kingdom come. The Oil industry cannot see beyond its nose, anything except Oil and yet potentially the greatest Energy Bonanza ever, lies within their grasp, if they could only see the solution that is staring them in the face, in terms of converting America's vast Saudi size reserves of coal to Ultra Clean Fuels that can not only power conventional engines, but have all the promise and potential of powering Fuel Cell and other vehicles of the future. We have a major growing problem in this World... We have about 10 years to make this transition or a Global catastrophe surely awaits...

Allied to the current high fuel prices are soaring Gold prices in part because historically Gold has traded at a price of 15 times the price of a barrel of Crude and now that this trend towards the norm has begun to accelerate from its anomaly extreme of around 6.5 times last year to the current 9.7 times or so of today, there is not only the likelihood that Gold will catch up to its norm, but may well overshoot and if the price of Oil keeps rising and soars to $85 or higher, then we could potentially be looking at Gold prices of $1275 or higher before too long.

to be continued....

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