Welcome to the Energy and Capital weekend edition — our insights in investing, as well as the top stories this week from Energy and Capital and our sister publications.
Once again, Saudi Arabia reiterated its satisfaction with oil prices around $75 per barrel. Saudi Oil Minister Ali al-Naimi was quick to point out that oil inventories are declining, and that current oil prices are "… OK between $70 and $80 per barrel." The next scheduled OPEC meeting to decide on production quotas is slated for December 22, 2009, in Luanda, Angola. Although oil demand is still weak, we’re not holding our breath for a production increase.
Meanwhile, the EIA’s weekly oil report showed another increase in U.S. stockpiles. Wednesday marked the third consecutive week that U.S. crude inventories have increased. Despite the 2.1 million barrel jump this week, inventory levels are still 19.5 million barrels higher than a year ago.
An economic recovery feels even closer after a U.S. Labor Department report was released. According to the report, the economy lost only 11,000 jobs last month. The estimate was much lower than the financial markets were expecting, giving us hope that a recovery is in sight. The news sent the dollar skyrocketing, which in turn led to gold dropping well below $1,200 per ounce.
Petrobras, Brazil’s state-run oil company, announced plans to develop the pre-salt region of the offshore Tupi oil field. In order to boost production, the company is spending approximately $174 billion to develop the field, which is expected to produce 5.7 million barrels per day by 2020.
Although natural gas prices have yet to get a boost from the winter season, it may be only a matter of time. On Thursday, MIT researchers proposed a new type of natural gas electric power plant. The new natural gas plant would provide zero carbon dioxide emissions at a lesser cost than both current natural gas and coal-burning plants. Natural gas currently makes up 22% of U.S. electricity generation.
With the recently made advancements in developing shale gas, the U.S. has been a hotbed of activity. In fact, some of the largest gas fields in the world have been discovered on U.S. soil, including one area that has been immune to the economic crisis. Check out this free investment report for more details.
Enjoy your weekend,
Energy and Capital
P.S. In case you missed our top stories from this week’s Energy and Capital or our sister publications, I’ve included them below.
Greenland’s Gift: A $273 Billion Resource At Stake
Energy and Capital readers get the first look at the one company about to have sole control over a chunk of Arctic tundra worth a fortune in rare earth metals.
Oil Vs. Natural Gas: The Prediction Buffett Missed
Energy and Capital Editor Keith Kohl explains why Warren Buffett’s prediction of an all-electric auto industry missed the mark, and offers a more logical solution to replacing carbon fuel.
History’s Biggest Drug Cartel: Racing to Build the Perfect City
Green Chip readers know all about how this cartel operates… But in this new report, we tell investors how they can profit from the cartel’s imminent downfall.
Gold Fever: Canada’s Abitibi Greenstone Belt
Wealth Daily contributor Greg McCoach weighs in on a newly discovered region in Canada that holds more gold than Fort Knox.
Data Center Power Consumption: What’s Powering the Internet
Editor Nick Hodge takes a moment to show readers how powering the internet is getting much more efficient — and how investors can take advantage of this new technology.
Paulson Picks Citigroup Stock: Buy, Sell, or Hold: Citigroup Stock Rises from the Ashes
Wealth Daily Editor Steve Christ provides insight on why Citigroup has survived the financial meltdown, offering readers a free investment report on this rising stock.
Buy Gold As the Dollar Burns: They Said It Couldn’t Happen to Uncle Sam…
Wealth Daily‘s Chris DeHaemer reports on the next leg of the debt crisis, pointing to one particular investment to play during the dollar’s crash.