Axis Energy Corp (AXGC)

[MistaPhat]

Holy cats! Are you saying the same geniuses that caused the meltdown are now predicting long term low oil prices? Well, I'll be a pickled prarie oyster! Time will tell... In The Mean Time:

From http://321energy.com/editorials/cohen/cohen122008.html (an interesting link by the way):

"Professor Vaclav Smil of the University of Manitoba has cataloged the vast record of energy forecasts offered by academics, corporations, consultants, trade associations, government agencies, "blue ribbon" commissions, policy activists and "futurists" of all stripes over the past 100 years and finds a "a manifest record of failure." There is simply no reason to believe that mere mortals can foretell oil prices or petroleum market shares in the future, absent some sort of time machine.

"... Not only is the assumption of a constant marginal production cost wrong, but the current NYMEX WTI price is $17 below the current cost. And since $62 is a break-even price, the price would likely need to be $75 or above to justify development of new oil projects. This is the price the Saudis recently said was required to maintain world oil production.

"$45 (now lower) for a barrel of oil signals that something very strange and ultimately tragic is going on in the oil markets.

"The oil price reached historic highs earlier this year because the world's economies were demanding lots of the stuff. The problem was that supply could not meet demand, which was reflected in inventory levels."


Me again: Gee, if OPEC is going to reduce supply, might the price go, boing, right back up? The Russians are not happy campers at the current price either from what I understand. Breaking news: 'Cold war's not ended apparently.

By the way, this guy Vaclav Smil is a very interesting guy. Read http://www.softmachines.org/wordpress/?p=296

Not that any of the above has anything whatsoever to do with Axis.

In any case Merry Christmas, all.