North West Oil Group, Inc. (NWOL)

[JLP76]

InvestmentNews report bullish on Russian oil....

NewYork- An executive at an American energy company with assets in Siberia is one of many who suggest that the U.S. come up with an alternative to Middle Eastern oil.

And not surprisingly, he is pushing Russia, among other areas.

The U.S. is sitting on an energy land mine, said David Zaikin, the founder, chairman, and chief executive of Siberian Energy Group Inc. of New York. The firm owns seven oil assets as part of a joint venture covering 1 million acres in western Siberia and 90% of the gas assets in the Russian region.

"Some traders and oil companies suggest that if Iran withdraws half of its oil deliveries, price per barrel will jump to $160," Mr. Zaiken said. "All major oil and gas companies can bridge the gap for a very short period of time, but after that, the price is in free territory."

Mr. Zaikin cited Iran's nuclear ambitions, flaring tensions in the Middle East and a 3-1/2 hour energy crisis simulation at the 2006 annual World Economic Forum in Davos, Switzerland, that showed that terrorist attacks could cause oil prices to rise to more than $120 a barrel.

With Saudi Arabia's infrastructure under constant threat from al Quaeda, the U.S. should look to safer bets, such as Azerbaijan and Kazakhstan, he said.

Russia also looks to be a long-term energy play for the U.S. "Due, in part, to disagreements with Russia (mostly in Iraq), the U.S. continues to overlook the fact that Russia has the largest oil and gas reserves in the world," Mr. Zaikin added.

Other agree.

"We see Russia as the largest producer of crude oil outside of OPEC, and its reserves are quite impressive," said Tina Vital, oil and gas analyst at Standard & Poor's in New York.