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Profits from pgpm moving into this one could be another 100%+ day tomorrow. Oil and gas are smokin' hot. Maybe a dip in the morning for a good entry point. Thats when I got in this morning.
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huge deposits that elimate our dependence on foreign oil that are now viable given the high cost of oil - which is not likely to change given global instability and demand.
"The Green River shale deposits in Colorado, Utah and Wyoming are estimated to contain 1.5 trillion to 1.8 trillion barrels of oil, and while not all of it can be recovered, half that amount is nearly triple the proven oil reserves of Saudi Arabia. " FPPL has leases (see below) in these well sought after land that is has to receive the permission of the US Gov't to drill. It has leases that even companies like XOM cannot get. Listed below are segments of the article in Rocky Mountain News that I felt were the most compelling. The first link below is to the entire article. The second is a link to a report on the Piceance Basin.
"The agency has rejected 14 out of the total 18 applicants on various grounds. Among those rejected was Exxon Mobil, the world's biggest company with revenues of $339.94 billion in 2005."
"The BLM (US Gov't office in-charge of giving out leases) began accepting proposals to lease federal lands last summer to kick-start development of oil shale in the Rockies, mainly in Colorado's Rio Blanco County. Of the 20 proposals it received from 18 companies, eight companies had plans for Utah, one for Wyoming while the remaining 11 were for Colorado.
First Petroleum Completes Its Property Acquisition Program With the Purchase of Its Final 3 Oil & Gas Leases in Wyoming and Colorado Market Wire (Mon, Dec 12) • First Petroleum Expands Colorado Oil & Gas Lease Program With Third Purchase Market Wire (Tue, Nov 15) • First Petroleum Secures Federal Oil & Gas Lease in Denver Basin, Colorado Market Wire (Wed, Nov 9) • First Petroleum Secures 2 Leases in the San Juan Basin of New Mexico Market Wire (Mon, Nov 7) • First Petroleum Acquires Oil & Gas Lease in Uinta-Piceance Basin of Colorado Market Wire (Wed, Nov 2) • First Petroleum Secures Federal Lease in the Permian Basin of New Mexico
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we need to start and have started exploring other sources of oil like shale - and FPPL is sitting on a lot of shale
"The Second Most Famous Oil Geologist: His name is Professor Kenneth Deffeyes...
Deffeyes was born in the oil fields of Oklahoma during the Great Depression. He spent decades as an oilman with Shell and just retired from a full-time teaching position at Princeton.
Now he spends his days lecturing investment bankers and brokers on peak oil.
Deffeyes has traveled all over the world studying oil fields. He claims to be the only non-Saudi geologist ever to have studied the reservoir rock samples from Saudi Arabia’s Ghawar oil field. Ghawar is by far the largest conventional oil field in the world.
In 2001, using the exact same techniques Hubbert used to predict peak U.S. oil production in the 1950s, Deffeyes predicted global peak oil production would occur on December 16, 2005.
He made his prediction in 2001 in a book titled: Hubbert’s Peak: The Impending World Oil Shortage.
“It turns out I was a few weeks off,” said Deffeyes in yesterday’s conference call, “With the benefit of the most recent data, we now know the actual peak occurred sometime in mid-January 2006.”
If Deffeyes is correct, mankind has a serious problem:
The world will never again produce as much crude oil as it did in January 2006.
By 2010, Deffeyes thinks global oil production will be 10% below today’s levels. By 2035, oil production will be half.
He says the main challenge to his view comes from the U.S. Geologic survey. They claim there are still huge untapped oil reserves in the USA.
Then moderator asked him about his price targets. “If we get really lucky,” he said, “if we get some very mild winters, and at the same time they stop blowing up pipelines in Iraq and peace breaks out in Iran and Nigeria... if all that happens at the same time, it wouldn’t be surprising to see oil fall back into the $30-$40 per barrel range.”
“But that doesn’t mean the problem is over,” he added.
He also mentioned that, on the upside, we could easily see oil go over $100 and stay there.
Next, the moderator asked him what sectors he thinks will be most affected.
The aviation industry was the first he cited. The commercial airlines, cargo airlines, manufacturers and suppliers all have a big problem: Unlike other energy consuming industries, there is no substitute for jet fuel. You can’t fly an airplane on ethanol or pig manure.
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