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Gold/Mining/Energy : Canadian Warrants Only -- Ignore unavailable to you. Want to Upgrade?

To: calgarylady who wrote (4331)	5/20/2008 11:51:43 PM
From: onepath	Read Replies (2) \| Respond to of 23093

You might of already seen this but worth a reprint.... Shortage fears push oil near $140 By Carola Hoyos and Javier Blas in London and Geoff Dyer in Beijing Tuesday May 20 2008 14:10 continued from previous page Anne-Louise Hittle, of Wood Mackenzie, said investors were shifting their focus from the short to medium term where supply fears are dominating the thinking. "For example, we know Iraq has the oil but we don't know if it will be able to bring the needed supplies into the market," she said, referring to the political uncertainty in the country which has the world's second largest conventional oil reserves. This comes as demand, especially from China, is set to continue to grow. Adam Sieminski, chief energy economist at Deutsche Bank, said: "The price is going to go up until governments that subsidise oil consumption in Asia and the Middle East can no longer afford it." Goldman Sachs, one of the Wall Street's most influential voices in the energy market, last week advised its customers to buy oil contracts for 2012. T. Boone Pickens, the influential oil investor who believes the world's oil output is about to peak, warned oil prices would hit $150 a barrel by the end of the year. "Eighty-five million barrels of oil a day is all the world can produce, and the demand is 87m," Mr Pickens said in an interview with CNBC. "It's just that simple." Mr Pickens' view is still in the minority but concerns over future oil supplies are fast moving into the mainstream. Even some industry executives have warned that geopolitical supply constraints will mean oil production will not be able to match demand as early as 2012 to 2015. Those are the years that saw the greatest jump in oil prices on Tuesday and have rallied since the start of the year. The nervousness about Chinese energy demand was exacerbated when officials said 32 power plants had been forced to close because of coal shortages, the second time this year the power industry has run short of coal. PetroChina (NYSE:PTR) and Sinopec, the two largest domestic oil groups, have diverted fuel supplies to the quake-hit Sichuan region in the past week, while China's State Reserves Bureau has released oil products to ensure supplies in the area. But PetroChina, which has substantial natural gas facilities in Sichuan, said that 99 per cent of production had been restored to pre-earthquake levels. << Page 1