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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?


To: dvdw© who wrote (48886)12/1/2009 7:12:25 AM
From: dvdw©  Read Replies (2) | Respond to of 207440
 
U.S. Crude Oil Production in 2009 Poised To Show Biggest Jump in Almost 40 Years: Platts Analysis

NEW YORK, Nov. 27 /PRNewswire/ -- Platts - United States crude oil production for 2009 is on target to have its biggest one-year jump since 1970, according to a Platts analysis of industry data.

With U.S. oil production averaging 5.268 million barrels per day (b/d) through October, the gain in U.S. output will be the most since the country produced 9.637-million b/d in 1970, which turned out to be the peak year of U.S. crude output, according to Platts' analysis of data published by the U.S. Energy Information Administration (EIA). If that 5.268 million b/d figure holds through December, this year would show a 6.4% boost from the 4.95 million b/d average of 2008 and rank as the best U.S. oil production year since 2004, when output averaged 5.419 million b/d.

For comparison, in the 40 years since U.S. oil production peaked annual output has jumped only eight times. Seven of those increases were minimal; only in 1978 was there a jump of significant magnitude, an increase of 5.6%, to 8.7 million b/d.

Last year's hurricane curtailments distorted the production numbers somewhat for the 2008 comparison, given that 183,000 b/d of Gulf of Mexico output was still offline at the end of that year. However, 2009 is still expected to post increases of 3% and 4% from the relatively storm-free years of 2006 and 2007, respectively.

Projections from the U.S. Minerals Management Service (MMS) indicate that the primary driver for this year's U.S. oil production resurgence is actually just getting started. That driver is the Gulf of Mexico, where operators have begun launching a group of new fields, fulfilling what has been a decade-long focus on unlocking the promise of deepwater exploration there.

In its reporting, Platts concluded that with the jump in the Gulf of Mexico, combined with the emergence of two other new oil-production trends, it appears the U.S. has a chance of at least maintaining oil output in the range of five million to six million b/d for some years to come. "We see it above five million barrels per day for the next 10 years or so," Platts quoted Peter Jackson, senior director for IHS CERA, as saying. "There is still a tremendous amount of exploration potential in the U.S. and that plateau could be sustained."

The Gulf posted its biggest oil production year in 2002 with 1.556 million b/d, but only 61% of that total came from deepwater. In contrast, this year the MMS projects oil output of 1.213 million b/d with 76% from deepwater as the Gulf ramps toward an expected new oil production record of 1.635 million b/d by 2011.

Besides growth in the Gulf, those other trends involve further development of the Bakken Shale oil play in North Dakota and success by a group of operators now training their onshore exploration sights toward new oil targets at the expense of natural gas.

The development of the Bakken into a robust, new oil province is well under way, according to data from EIA. Bakken oil output has already elevated North Dakota into fifth place among U.S. states for oil production with average daily output of 202,000 b/d at the end of 2008. But that number already appears to be old, even though is was 50% more than 2007 figures. For example, in June of this year, production in North Dakota had climbed to 215,000 b/d.

As for companies shifting their strategies, that group includes large Houston independent and Bakken pioneer EOG Resources, which has set a goal of shifting from a 70% gas production share to a 50:50 oil and gas mix by 2011 with a comprehensive review of additional potential North American shale oil targets.

This rise in output has helped the U.S. reduce its net imports -- defined as imports less exports, both crude and petroleum products -- by a substantial amount. While there are many factors that go into the United States' net import figure, the decline has been striking, according to EIA data.

For the final three months of 2008, net imports - reported weekly by EIA -- were never less than 10.5 million b/d, and were as high as 12.68 million b/d. This year, the EIA is reporting that net imports in the first week of October were 10.1 million b/d, have not been higher since, and have been as low as 8.84 million b/d.

And while the drop in U.S. consumption can be seen as accounting for much of that decline, the U.S. also has put more than 140 million barrels of crude oil and products into inventory since the beginning of October 2008, something made possible in part by the rise in crude oil output.



To: dvdw© who wrote (48886)12/1/2009 9:30:59 AM
From: dvdw©  Respond to of 207440
 
Information dissemination under the terms of RO/RS=CF is on display with this chain of posts. Information management is the life blood of systemic intent. In the current market obfuscation is the prevailing metric through which masking intent is managed by dissemination. The public must become acutely sensitive to it sources of information; realizing at last, that the games are all informational, conducted by systemic mouthpieces to specific purposes.

This little chain of posts is a powerful illustration of the game and its subsistence. If the battery is going to be important, and it certainly will be, than the holistic parts of the machine need to come together in preparation. Notice in the articles below, the tired old big names associated with the down playing of battery....that is purposeful to give the illusion that they as knowing players have considered the subject and deemed the shortcomings as X Y Z etc.

Pay no attention to the OLD School or its mouthpieces. When a New School is demanded....innovation is moving the game holisticly, solving every associated problem on its own, and then performing the task of systems integration. Our economy depends on New School companies and solutions reinventing our goods and services.

During transitions expect the OLD School to be the resistance...while attempting to retain expert status....

note all those enlisted to each cause on any side of any equation, all play a biased role in dissemination of information. Characterize everything......associated with sources and categories.

From the oil thread, where self interest is anything but truthful.
From: CommanderCricket 11/26/2009 9:38:48 AM
1 Recommendation Read Replies (1) of 126094

Don't hold your breath for a mass produced electric car.

What's killing the electric car

Jerry Flint, Forbes Published: Wednesday, November 25, 2009

The advances in electric-car technology have been impressive, but solutions to recharging and cost aren't in sight yet. Getty Images The advances in electric-car technology have been impressive, but solutions to recharging and cost aren't in sight yet.

Electric cars may be coming, but they will come much more slowly than you might expect from all the publicity. The price is one problem. It's the batteries. To get an e-car with more range, you need more batteries.

The battery companies don't hand out the price list to me, and the carmakers keep it a secret, too. But we're taking about lithium ion batteries of some type, and from what I've heard, the batteries needed to give a car a 40-mile range cost around US$10,000. Batteries for a 100-mile range may run US$25,000 or more.

There's the legend that with mass production the cost will go down. Maybe, but that's bunk when it comes to certain materials. Take oil. Production is way up from the old days, and so is the price -- I remember US$3 a barrel, but now it's around US$70 today. Indeed, OPEC might be a model for LIEC, a lithium ion producers' cartel, when they realize how important it is.

Here's what we know.

Mitsubishi is making a little e-car in Japan, something like the small Smart -- and the price is around US$48,000. We have Tesla making a few e-cars in this country, and the price is US$125,000.

Nissan says it will build an e-car soon. It's called the Leaf, and will be built first in Japan. Nissan will get our government's money to help set up production here. The Leaf is 175 inches long, a couple inches shorter than a Honda Civic, with batteries under the seat and floor giving a 90-miles-per-hour speed and a 100-mile range, Nissan says.

Nissan wants to put 5,000 Leafs on the road here starting late next year. That's a big test.

Price or cost: Company executives have said the Leaf -- without the batteries -- could be priced close to what a regular car of that size would cost. That's without the batteries. They are thinking -- thinking, nothing is definite -- of leasing the batteries -- on top of the price of the car. If my estimate of US$25,000 is correct for the batteries that's a hefty lease--hundreds of dollars a month. This estimate seems in line with that US$48,000 price on the Mitsubishi car in Japan.

The third model coming is General Motor's Chevrolet Volt, to be introduced at the end of next year, and maybe 10,000 or so built in 2011. No price has been given -- but from what GM officials have said the price would be between US$40,000 and US$45,000, depending on how much loss GM is willing to take.

The Volt is more of a hybrid -- it's got a gasoline engine that takes over when the batteries run down after 40 miles. But the engine powers a generator that creates electricity that turns the wheels, so it's an e-car in its way.

These prices seem high, but then new technology doesn't come cheap. The e-car problems go beyond price -- indeed, price may be the lesser problem.

These companies, Mitsubishi, Nissan, GM are pushing the edges. Toyota, for example, says frankly that it doesn't think the batteries are ready yet -- and successful e-cars are years away. Toyota may be wrong, of course, but they are still the No. 1 carmaker in the world with the best reputation for knowing the business.

The two major problems have always been range and recharging. We do seem to be getting a handle on range. Even 200 miles or 300 miles seems possible for cars with enough batteries.

Recharging is still the problem. It can take 8 hours or four hours or maybe 2 hours or maybe half an hour. Companies talk of quick charging -- quick meaning half an hour or so. But some engineers say this can hurt the life of the batteries. Again, some say not so. We don't know yet until cars are on the road. And you need a long cord to charge the battery, and you must do this at your house or garage. There are next to no public charging posts.

What's likely to happen over the next few years is this:

Some electric cars will be built. They will be expensive because of the batteries. Recharging will remain a major problem. The Nissan Leaf and GM Chevy Volt will be less than successful because of this and the high price. But they will push the technology -- the learning experience-forward.

You should understand that everything an auto company announces is not, well, exactly the way it is. There are always announcements of projects that are late, years late, or get killed or just fail. Gosh, I can remember a small car, codenamed Cardinal, that Ford planned to build in this country that was killed just 60 days before the scheduled Job 1.

Yet auto company announcements seem amazingly credible to the press. When I was a boy there were stories about the carburetor that would produce 100 miles to the gallon, or the little pill you could drop in your gas tank, but that was street-corner gossip. We didn't read it in the regular press. Now we read humbug every day.

The advances in electric-car technology have been impressive. We can envision the day when the range issue is solved. Recharging and cost solutions aren't in sight yet.

Read more: financialpost.com