Wednesday, May 17, 2006 7:56:44 PM
I have done a LOT of reading about oil and would like to share a few startling findings. Venezuela's President Hugo Chavez told British Prime Mister Tony Blair to "go right to hell" and told his supporters that the US sponsored Free trade Area of the Americas "can go to hell. If oil was 20 buck instead of 60 a barrel, that guy would be watching his mouth much more closely. As it is, he has leverage. My point is that Venezuela will not be very eager to share its oil with us (i.e. one less source)-- if it does they wil makes us pay for it in more than one way.
When oil pricers were at their nadir in the early 90s, Arab oil states were talking about reform. As prices started to climb, political reforms went on the backburner. My point?
We are having to deal with a lot of cocky demanding demagogues.
For example, Iran's president is pushing ahead with its nuclear program before its oil shield is lost. Here is a quote which exemplifies my point: An Iran delegate, Ali Asghar Soltanieh, said to the IAEA bluntly in march, "the United States has the power to cuase harm and pain, but the United States is also susceptible to harm and pain. So if that is the path that the US wishes to choose, let the ball roll." Why would Bush or anyone want to deal with that crap when they can deal when the peaceful CAnadians?
Whether we choose to accept it or not, consumption in China, India, and southeast Asia has SURGED. In short, we have competition unlike before.
Conclusion: All stocks having to do with oil sands in Canada will go up. Within that sector, this is probably one of the strongest plays. I think everyone else posting has given evidence of that.
p.s. Please tell me if anyone like this post or if I was just ranting. Thanks and Keep posting!
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