|
Up Pre-Paid Legal Insurance, Annuities Market Tracker Real Estate Asset Protection Seminars Other Services Contact Us



Call Now!
Colorado Springs
(719) 591-0433

| |

Investors:
Click
here or Call for a Free
Consultation.
We can design a portfolio of energy and natural resource
investments for growth or income. We can save
you time, money, research and costly mistakes. The information below
provides an overview and educational information on various natural resource investment choices.
For latest Commodity Prices and Charts, visit our Commodity
Prices page (wait for chart data to load).
Join
our Free Newsletter.
Fourth
Annual Energy Forum & Expo
coal, natural gas, oil shale, uranium, wind, solar, alternative energy
Learn the latest information on energy in Western Colorado
Friday, February 26, 2010, 8 am - 4:00 pm
Two Rivers Convention Center, 159 Main St, Grand Junction, Colorado 81501
FREE ADMISSION to the public
Agenda
Diversify with Natural Resources. A well-diversified investment portfolio should
include a variety of investment types such as
stocks, bonds, cash, real estate and natural
resources. Natural resources include various
commodities such as oil and gas, coal, precious
metals, industrial metals, and agricultural
commodities such as crops, livestock and
timber. Water is also a valuable natural
resource. The four broad groups are ENERGY (oil, natural gas,
coal, uranium), FOOD (corn, wheat, soybeans, oats, rice, livestock,
coffee, sugar, cocoa, orange juice) METALS and MINERALS (gold, silver,
platinum, copper, aluminum, lead, nickel, zinc) and RAW MATERIALS
(lumber, steel, cotton, wool, rubber).
There are several ways to invest including
commodity futures, managed commodity funds,
natural resource stocks and mutual funds, limited partnerships, and
commodity-linked securities such as bonds or ETFs backed
by gold, silver, oil, natural gas, gasoline, agricultural commodities and
others.
Often, hard assets such as natural resources
are going up in value when stocks or bonds are
doing poorly. Adding natural resources to
your portfolio provides better diversification and
another opportunity to profit under changing
economic conditions.
We have done research into various investment
alternatives including natural resource stocks, royalty trusts, mutual funds,
ETFs and commodity-linked
securities. There are investments for growth
or income or both. Some investments also provide tax benefits.
Oil & Gas. In 2000, Colorado
ranked 10th of all states in crude oil production,
6th in natural gas production, and 1st in coalbed
methane (CBM) production Oil and gas wells
are located in 42 of Colorado's 63 counties. The
top three counties in oil production are Rio
Blanco, Weld and Cheyenne. La Plata, Weld and
Garfield counties lead the state in natural gas
production. Two refineries operate in Colorado, both in
Commerce City. We have researched oil and
gas companies operating in the following regions
of Colorado as well as other areas in the USA and offshore:
- San Juan Basin (southwest Colorado)
- Raton Basin (southeast Colorado)
- San Luis Basin (southwest Colorado)
- Park Basin (central Colorado)
- Denver-Julesburg (DJ) Basin (northeast
Colorado)
- Sand Wash, Piceance, Paradox, Vermillion and Green
River Basin (northwest Colorado)
 (For
tourists, Sand Wash Basin is the home
for a herd of about 200 wild
roaming horses.
For investors, you can buy
beautiful alpine valley real estate with
wildlife, hunting, fishing, clean air,
mountain and lake views and wild
horses at Melby
Ranch Wild Horse Mesa near
sunny, historic San Luis, Colorado
(oldest town in Colorado) and Lake
Sanchez, close to the famous Rio
Grande River and Taos, New Mexico.
Contact us for more information on investing in land in Colorado
and New Mexico. You can buy land in your IRA account.)
If you have ever seen oil and gas wells while
driving in Colorado or elsewhere, you may have wondered who owns
them. The Southern
Ute Indian Tribe is a big owner
of natural gas wells on their reservation in
southwest Colorado near Durango. (along with the Sky
Ute Casino and lodge) (You can listen to their radio
station on the Internet at www.KSUT.org)
Top oil producing states in September 2007, figures shown are thousand
barrels of oil per day (BOPD): 1. Louisiana- 1,417, 2. Texas- 1,251, 3.
California- 679, 4. Alaska- 663, 5. Oklahoma- 166, 6. New Mexico- 159, 7.
Wyoming- 142, 8. North Dakota- 121, 9. Kansas- 102, 10. Montana- 87,
11. Mississippi- 51, 12. Utah-50, 13. Colorado- 48.
In Texas, the major oil and gas regions are:
- Permian Basin, Midland, Delaware, Val Verde Basins- (west
Texas)
- West Texas Overthrust (WTO), Piñon Field,
Pecos/Terrell counties- (west Texas)
- Anadarko Basin, Palo Duro Basin (Texas panhandle)
- Offshore- Gulf of Mexico
- Barnett Shale- Fort Worth Basin (north central Texas)
- South Texas
- Cotton Valley, East Texas
In Wyoming, the major oil and gas regions are:
- Greater Green River Basin (southwest Wyoming)- Jonah, Pinedale, Mesa Unit,
Lost Soldier Fields
- Overthrust Belt (southwest Wyoming)- Fogarty Creek Field
- Powder River Basin (northeast Wyoming)- PRB Coal Bed Field
- Big Horn Basin (northern Wyoming)- Elk Basin, Oregon Basin Fields
- Wind River Basin (central Wyoming)- Madden Field
In New Mexico, the major oil and gas regions are:
- San Juan Basin (northwest New Mexico)
- Permian Basin (southeast New Mexico)
- Raton Basin (northeast New Mexico)
- Galisteo Basin (controversial new development near Santa
Fe)
Other major oil and gas producing states are Louisiana, Oklahoma, California and
Alaska. North Dakota is rapidly increasing oil production from the
Bakken shale region, which extends into Montana and Saskatchewan.
The U.S. Strategic Petroleum Reserve (SPR) was created in 1975 in
response to the Arab oil embargo of 1973-74. Crude oil is stored at 4
sites in salt domes (caverns), from 2,000 to 4,000 feet underground, along the
Gulf of Mexico in Texas (Bryan Mound 226M bbls, Big Hill 160M bbls) and
Louisiana (West Hackberry 219M bbls, Bayou Choctaw 72M bbls). In November
2001, President Bush ordered the Department of Energy to fill the SPR to
capacity and it is now full. Total storage capacity is approximately 700
million barrels, about 53 days worth of crude oil. The SPR may be expanded
to 1 billion barrels in the future. In addition, large underground
reserves of oil and gas are located in the National Petroleum Reserve- Alaska
(NPRA) and in section 1002 of the Alaska National Wildlife Refuge (ANWR), both
located on the North Slope near Prudhoe Bay on the Artic Sea.
You can own shares of oil and gas
wells as an investor.
Click here
for oil and gas investment advice.
 
Coalbed Methane (CBM) Well Lifespan
Drilling
rig components illustrated glossary from US Department of Labor, OSHA.
Glossary
of oil and gas drilling and operating terms from Petex and University of Texas, Austin
Gas Hydrate. Gas hydrates are a crystalline solid (clathrate),
consisting of compressed gas molecules, usually methane, trapped by a cage of
frozen water molecules. There is a huge amount of gas hydrate in the
oceans, deep lakes and artic permafrost regions, but it is not commercially producible
safely at this time. Due to the compression, methane hydrate (also known
as ice that burns) has about 200 times the energy density of methane gas, making
it an attractive energy source. Research is under way to determine safe,
economical production techniques. Commercial production is about 10 years
away. Gas hydrates in the North Slope region of Alaska may out produce the
conventional gas in the Prudhoe Bay region. Production of just 1% of the
world's known gas hydrate resources would meet US natural gas demand for the
next 100 years. Global warming could cause gas hydrates to
"burp" massive amounts of methane into the atmosphere, accelerating
the global warming process.
Oil Supertankers.
Another
opportunity is in ocean-going, double-hulled, oil cargo supertankers.
The largest are known as ULCC and VLCCs (Ultra/Very Large Crude Carriers).
Smaller sizes are known as SuezMax, PanaMax, AfraMax and HandySize. Several companies own
fleets of $60 million oil tankers and rent
(charter) them to major oil companies and
governments for over $50,000 per day on guaranteed
contracts for up to 7 years. Other tankers are available at the current
tanker market rate (spot rate) which fluctuates widely based on tanker supply
and demand. You can own
shares in oil tanker companies and receive
quarterly dividends. Part of the dividend is
tax-free.
Other
tankers. Other companies own insulated ocean tankers designed to transport cooled liquefied
natural gas (LNG). Natural gas (methane) is cooled to minus 260
degrees F, which causes the volume of the gas to be reduced by 600 times, making
it economical to store and transport in liquefied form. LNG is not
explosive in its liquid state. Special LNG terminal ports (liquefaction
plants and regasification plants) are needed and more are being
constructed. Major suppliers of LNG are Algeria, Indonesia, Trinidad,
Tobago, Nigeria, Qatar, Oman, Russia and Australia. Some LNG is produced
in Alaska. Some companies own oil tanker barges that transport oil in shallow water,
or product carriers and ships that carry refined products such as gasoline,
diesel, jet fuel, aviation fuel, kerosene or heating oil.
Click here for our FREE
REPORT on: Oil
Tanker Stocks. Oil
Tanker Newsletter. VLCC
Tanker Monthly Spot Rates Data. The Louisiana Offshore Oil Port
(LOOP), south of New Orleans, is a vital deep water port for unloading oil
tankers, and was affected by Hurricane Katrina. Click
here for investment
advice on oil tanker stocks.
Oil Shale and Gas Shale.
Click here for our FREE
REPORT on: Oil
Shale.
HUGE oil shale deposits are located in the
Uinta Basin in northeast Utah, and the Green River Basin in
southeast Wyoming and Piceance
Basin in northwest Colorado near Parachute, Rifle, Battlement Mesa and Grand Junction, with
high concentrations in Rio Blanco, Garfield and Mesa counties, containing 1/2 to 1 barrel
of oil per ton of shale, and 1 million barrels per acre. Total recoverable
deposits are estimated at 800 billion barrels of oil. Smaller oil shale
deposits are found in the San Juan Basin of northwest New Mexico. Eastern
oil shale deposits are in Kentucky, Ohio and Indiana.
Bakken Shale
deposits are located in the 25,000 square mile Bakken Formation, with 2/3 in
western North Dakota (Williston Basin, Parshall Field, Mountrail County), near Stanley and Minot, and the
rest in eastern Montana (Elm Coulee Field), Saskatchewan and
Manitoba. Bakken Shale accounts for half of Montana's oil
production. Due to Bakken shale oil, North Dakota oil production is
reaching new record levels. North Dakota is now ranked #8 in US oil
production. The state oil industry expects to need 12,000 new workers by
2010. Bakken oil recoverable reserves are estimated at 4 billion barrels,
plus 1.85 trillion cubic feet of natural gas and 148 million barrels of natural
gas liquids. (Note: The Arctic National Wildlife Refuge in Alaska, ANWR,
holds an estimated 10 billion barrels of oil, but drilling is not allowed under
current law.) Bakken oil wells cost about $6 million each and are drilled
about 10,000 feet vertically plus another 10,000 feet horizontally. The
shale rock is fractured using water and sand or ceramic, releasing light, sweet
crude oil from microscopic pores. New technology and high oil prices make
it economical to drill deeper for oil, as long as oil prices are above $50 per
barrel. An oil refinery is under development on the Fort Berthold Indian
Reservation.
With higher oil prices, and improved
technology, there is a renewed interest in Colorado oil shale. Small scale research
and production operations continue, at Shell's Mahogany Research Facility near
Rangely, Colorado, 25 miles southwest of Meeker, using underground refrigerated "ice walls"
(freeze walls) and electric heaters lowered into well bores to
heat ground sections to 700 degrees, for 3 to 4 years, to release
oil and gas (In-situ Conversion Process or ICP), essentially speeding up the
process which requires millions of years in nature. Other in-situ heating
methods include using underground fuel cells, microwave radiation, heated pipes,
and hot gas injection. Recent government incentives
encourage speeding up large scale commercial
development. Environmental assessments are under way. Projects are
located on federal and private land, operated mostly by large oil and gas
companies and a few small firms. Some small companies could be very big
winners. Large scale commercial production of crude oil from shale would
bring thousands of direct and indirect jobs to the region. US Department
of Energy (DOE) forecasts predict initial production of 200,000 barrels per day
by 2011, growing to 2 million barrels per day by 2020 and later to 10 million
barrels per day. Skeptics view the forecasts as overly optimistic hype
regarding both the timeframe and production amounts. Others expect clean
diesel fuel made from coal (synfuels from liquefaction) will win and be used by
new diesel hybrid vehicles.
The new extraction methods can extract up to 10 times the old
"retort' (kiln) method of mining and heating the rock. Energy is required to heat the ground, with new coal power plants,
extracted oil and gas, and fuel cells as potential energy sources. The Energy Policy Act, passed in August 2005, mandates the
Bureau of Land Management (BLM) to offer public land for commercial leasing for
oil shale development by the summer of 2007. Huge open pit mines are
also being studied. Beware of get-rich investment hype on Colorado oil shale.
As one saying goes, "Oil shale is the fuel of the future, and always will
be." Abundant coal or uranium may be a better investment choice.
Bakken oil shale is already in production in Montana and North Dakota.
Barnett Shale
and Woodford Shale natural gas deposits are in the Fort
Worth Basin, Texas. Fayetteville Shale is in
the Arkoma Basin in northwest Arkansas. Baxter Shale is in
northwest Colorado. Floyd Shale is in
Mississippi. Marcellus Shale is in the Appalachian Basin in New
York, Pennsylvania and Kentucky. Haynesville Shale is in northwest Louisiana. Monterey Shale is along the California coast. Canada has oil shale deposits in central
Saskatchewan and gas shale in Nova Scotia, Quebec and British Columbia.
Israel also has oil shale. Click
here for advice in choosing oil shale and gas shale investments.
Oil
Sands (tar sands). Several companies are exploring and mining the huge oil sands
(tar sands) deposits (bitumen) in northern Alberta and Saskatchewan, Canada, in
the Fort McMurray, Athabasca (80%), Cold Lake (12%), and Peace River (8%)
regions. Open pit mining is used for deposits less than 250 feet
deep. In-situ extraction operations, such as steam-assisted gravity
drainage (SAGD) are used for deeper deposits. Oil sands contain sand,
clay, water and bitumen, a heavy, tar like form of crude oil. Trace moisture in the gooey oil
sands aids in the heat extraction process to produce synthetic crude oil.
Current production is about 1.2 million barrels of oil per day (BOPD), from
Alberta. Total recoverable deposits exceed 315 billion barrels.
Future oil sands production is expected from Saskatchewan. Eastern Utah
has tar sands resources estimated at 12 to19 billion barrels of oil (see
map). Vernal, Utah (Asphalt Ridge) has a pilot tar sands project. Lead times are
generally 7 to 10 years from initial exploration and discovery to commercial
production. Oil production from politically stable regions is more
valuable than from politically unstable regions or countries impacted by
fighting and terrorism. Click
here for advice in choosing oil sands investments.
Royalty Trusts. Oil, gas, coal or iron ore
Royalty Trusts pay you monthly or
quarterly dividends (royalties), based on the
prices paid for their already discovered natural resources. A few
companies pay dividends from royalty interests in gold mining operations. There is no
exploration risk. Separate operating companies are contracted to produce,
market and sell the resources. Some may also
pay you Section 29 Tax Credits if they are
producing Fuel from Non-conventional Sources
(FNS) such as coal seam gas (coalbed methane or CBM) and other fuels such as biomass methane from
waste landfills or livestock manure. The tax
credits can be used to reduce your tax bill from
any source of income: active, passive, earned,
unearned, dividends, interest, rents, IRA and
pension withdrawals! Some income programs
enable you to buy direct ownership of an oil
and gas Royalty Interest or Working Interest as a Tenant
In Common owner. They may also qualify for a
Section 1031 exchange for investment real
estate. Click
here for advice on Royalty Trusts.
Click here for our FREE
REPORT on: Royalty
Trusts. Beware of differences between US and Canadian royalty
trusts, tax considerations, suitability for IRAs, changes in Canadian tax laws and depleting resources
causing the trust to terminate. Click
here for assistance and investment advice on Royalty
Trusts.
Private Oil and Gas Properties For Sale:
Working interests and royalty interests in oil and gas properties in many states
are available for sale from about $10,000 and up, and they can be used to swap
for real estate in a 1031 exchange. (View
article on oil and gas 1031 exchange.) Oil and gas properties
can provide excellent tax benefits, high return on investment and monthly cash
flow. Tax benefits can reduce your taxes and shelter income from your
salary, stock trading, etc. Exploration, wildcat, developmental and
producing properties are available to suit your needs and risk tolerance.
Click
here for assistance and investment advice on 1031
exchanges.
Oil & Gas Pipelines.
In
addition to transporting oil by supertankers,
there are major pipeline companies (some organized as
Master Limited Partnerships or MLPs) that generate
steady income distributions to investors from the
fees (tariffs) they charge for transporting oil
and gas, under long-term contracts with major
energy producers. Pipelines are usually the
cheapest form of transportation, have a long
lifespan, low maintenance costs and produce income
based on their volume usage, rather than the price
of oil and gas. Distributions to investors have tax advantages, with 70% to 90% not
taxable as income, but rather treated as a return
of capital. Click
here for advice on
pipeline investments.
Refineries
and Storage Terminals. Crude oil is transported to refineries where it
is refined using separation, distillation, conversion (cracking), treating,
combining and reforming into various commercial products. The primary
products are transportation fuels. Typical refinery production might be
gasoline (46%), diesel fuel (21%), aviation gasoline, jet fuel (11%),
heating oil (7%), kerosene (0.5%), propane, butane, asphalt (3%), coke (4%),
waxes (0.1%), lubricating oil (1%), sulfur, feedstocks and other
products. There are not very many refineries in the USA, and new
refineries have not been built in many years. More of the crude oil being
produced is now "sour", meaning high in sulfur (> 0.7%). Few
refineries are equipped to process sour crude, which is cheaper to buy than
"sweet" crude (low sulfur). Ethanol plants (See
Ethanol refinery map) and biodiesel plants are also in
operation and many more are under construction to provide fuel from renewable
energy sources such as crops and cellulose. There is a growing
distribution system for these fuel products and a growing number of vehicles
that can operate on these fuels. Bio-fuel vehicles and future electric
cars will eventually reduce demand for gasoline.
Click here
for our FREE
REPORT on: US
oil refineries and the companies that own and operate them. Many are along
the Gulf of Mexico and can be affected by hurricanes. Some
refineries are owned by small independent companies and other refineries are
owned by major international oil companies. (In Canada, the major oil
refiner is Imperial Oil Limited, with refineries in Alberta, Ontario and Nova
Scotia, and its refined products distributed through over 2,100 Esso retail gas
stations.) Storage terminals store oil
and gas in tanks or caverns for the operator or for customers for a storage
fee. Storage is used to help buy oil and gas when prices are low and
supplies are plentiful, and sell it when prices are high due to supply shortages
or high demand. Storage terminals may be located at refineries or at
separate storage locations. Click
here for advice on refineries and storage
terminals.
Oil
and Gas Services. Oil and gas service companies provide
oil and gas equipment and services such as exploration, drilling rigs, drilling
services, working
crews, pipe, pumps, compressors, meters, deep-water drilling
and pipe-laying ships, offshore platforms, transportation, seismic and
geological services, fire prevention and fire extinguishing services, consulting
and other related services. Click
here for
advice on oil and gas services companies.
Coal.
Coal is used to generate over 55% of the electricity in the U.S. There is
plenty of coal available for many decades. Many power plants and some
manufacturing and industrial plants use thermal coal (steam coal) to generate heat or electricity
and steel mills use coking coal (metallurgical coal) in blast furnaces. Growing
demand from China, India and other developing countries is boosting coal
prices. You can invest in coal royalty trusts, MLPs, coal mining companies
or railroads, dry bulk ships and barges that transport the coal, or heavy
earth-moving equipment used to mine the coal. There are also a few
companies that convert coal or coal waste into gas (gasification) or into liquids
(liquefaction), including gasoline and diesel fuel, known as synthetic
fuels or synfuels.
The leading coal producing states are 1) Wyoming, 2) West
Virginia, 3) Kentucky, 4) Pennsylvania, 5) Texas, 6) Colorado, 7) Montana and 8)
Indiana, 9) Illinois and 10) Virginia. Eastern coal mines are mature,
generally underground and produce high sulfur coal. Western coal mines,
such as the large Powder River Basin fields in Wyoming, are younger and growing
in production, using more economical surface mining methods to produce low
sulfur coal. However, Western coal mines are further from major population
centers and must pay more for transportation costs. (I grew up in a coal mining town in western
Pennsylvania, Appalachia.) Lignite is a low quality, low energy density
brown coal, compared to black coal. Major lignite deposits are in western
North Dakota and eastern Montana. Oil shale has about the same low energy
density as lignite. Click
here for advice on coal investments
Alternative
Energy. Major oil companies have money invested in alternative and
renewable energy sources such as solar energy and wind power. A few smaller
companies offer products and conduct research and development in this growing
area. Biomass
energy, bio-methane gas from livestock manure, fuel cells, and more efficient batteries,
using lithium, are being developed.
Lithium.
Increasing use of lithium-ion batteries for consumer electronics and hybrid and
electric vehicles should help boost profits at lithium mining companies and
battery manufacturers. Some mining companies use expensive open pit mines
requiring heavy machinery. Other mining operations extract lithium from
salt lake brine deposits, are quicker to get licenses and permits approved and
mines into production, have little environmental impact, and are less expensive
to operate (lower overhead) helping to increase mining profits. Prices for
lithium carbonate (Li2CO3) in the last 10 years have ranged from $1800 to $6600
per ton. Demand for lithium-powered vehicles is expected to increase
fivefold by 2012. Over 60% of cell phones and over 90% of laptop computers
use lithium batteries. The global market for lithium batteries is
estimated at over $4 billion per year and growing rapidly. Contact us
about investing in lithium mining stocks.
Hybrid vehicles and electric vehicles (see
Tango 2-seater electric car) are available and back-ordered. Zap
(Zero Air Pollution) produces electric cars, sports cars, trucks,
bikes and scooters. Orders are backlogged due to growing demand. For
comparison, in the USA there are about 800 vehicles per 1000 people. In
China and India, there are only about 10 vehicles per 1000 people, but vehicle
ownership is growing rapidly. This puts increasing demand on oil and
gasoline, driving up prices as more vehicles require fuel. Rising gas
prices cause consumers to shift to smaller, fuel-efficient vehicles, car
pooling, reduced travel, public transportation, electric cars, motorcycles,
scooters, bicycles, electric bicycles, telecommuting and web conferencing. Mercedes is producing
several models of the small 2-seater gasoline Smart car.
New Mexico has a lot of sunshine and is becoming a leading
alternative energy state with incentives for the use of alternative
energy. Governor Bill Richardson is a former Secretary of Energy. Tesla
Motors is now producing the Tesla Roadster electric car in
Albuquerque, with the WhiteStar sports sedan model to follow. The world's
largest solar panel farm, 3200 acres, with a capacity of 300 megawatts, enough
to power 240,000 homes, is proposed to be built by 2011 near Deming, New Mexico,
with 350 days of sunshine a year.
The New Mexico Wind Energy Center, 170
miles southeast of Albuquerque, in House, 20 miles northeast of Fort Sumner, can
produce up to 200 megawatts, from windy eastern New Mexico. It has 136
turbines, each 210 feet high, and is one of the largest wind generator farms in
the USA. Oil tycoon T. Boone Pickens' Mesa Power is now building the
largest wind farm in the world, 4,000 megawatts, equivalent to four large
coal-fire power plants, in Pampa, 60 miles northeast of Amarillo, in the Texas
panhandle.
Fuel Cell Vehicle- Honda is now manufacturing the FCX
Clarity car that uses an electric motor, powered by a generator driven by
hydrogen fuel cells. It is only available in southern California, where
there is a network of hydrogen refueling stations. Driving range is about
280 miles.
Biodiesel fuel
is made from oilseed crops, such as canola, rapeseed and jatropha, a
drought-resistant tropical shrub, and from soybean oil,
mustard, peanut, sunflower, coconut and palm oils, and from algae.
Biodiesel fuel can be used in most diesel vehicles with no modifications.
The original diesel engine was designed to run on peanut oil biodiesel. Due to
tax incentives, US
biodiesel production is expected to grow rapidly from 30 million gallons in
2005, to 80 million gallons in 2006, and up to 200 million gallons in 2007.
Ethanol.
Unleaded gas mixed with ethanol (E-10 and E-85) made from corn is
available at many gas stations. There are about 100 ethanol refineries,
with about 40 more under construction. (See
Ethanol refinery map.) E-10 (gasohol) contains 10% ethanol and
can be used in most modern vehicles. Fuels with higher amounts of ethanol
(E-85) can be used in Flexible Fuel Vehicles (FFVs), however, only about 1,000
US gas stations (0.6%) out of 170,000 total offer E-85 fuel, mostly in the Midwestern
farming states. FFVs, mostly fleet vehicles, represent only
about 8% of all vehicles on the road. Ethanol fuel provides more power due to its
higher octane rating (100-105) but has lower fuel economy than gasoline, so more
fuel is needed.
Corn is a thirsty crop, so
other starch and sugar crops are also being developed for ethanol production
including sugar cane, sugar beets, apples, peaches, grapes, melons, sorghum, wheat, barley, rye,
potatoes, and maize. Sugar cane produces about 7 times more energy than
corn, and Brazil is powering most of its vehicles on sugar cane ethanol.
Cellulosic ethanol is made from cellulose biomass, including some agricultural and forestry waste products,
grass, switch grass,
rice straw, straw, corn stalks, wood chips, and fast growing trees like willow and poplar.
US gasoline consumption is about 140
billion gallons per year. US ethanol production is expected to grow rapidly from current levels of
about 4 billion gallons per year, to about 12 to 14 billion gallons per year
maximum (for E-10 demand). More E-85 ethanol vehicles and fueling stations are
needed for ethanol to become a significant replacement for gasoline.
Wal-Mart is planning to add E-85 fuel pumps starting in 2008, after UL testing
is completed to allow safety certification of the pumps. There are some
E-85 corrosive effects on metal (aluminum) and rubber (fittings and hoses) that
need to be tested. Ethanol attracts water and cannot be transported by
pipeline. Most ethanol is currently produced in Iowa, and other sparsely
populated Midwest farming states, and must be transported by truck and rail to
more populated areas, adding to the final cost at the pump. Some hobbyists and small businesses
are making ethanol from apple juice using homemade stills. In 1908, the
original Ford Model T automobile ran on ethanol.
Renewable Fuels
Standard. The Energy Independence and Security Act of 2007
amended the Renewable Fuels Standard of 2005 to increase the use of renewable
fuels, to reduce foreign oil dependence and reduce greenhouse gas
emissions. It defines phase-in
period annual production goals for conventional biofuel (corn starch
ethanol), advanced biofuels (cellulosic biofuel and biomass-based diesel).
Initial goals are 9 billion gallons of corn starch ethanol in 2008, peaking at
15 billion gallons in 2015. Advanced biofuel production begins at 0.6
billion gallons in 2009, increasing production rapidly, and matching and surpassing
corn starch ethanol with 15 billion gallons of production by 2020.
Gasoline will remain as the primary transportation fuel for many years as
electric, hybrid and alternative energy vehicles ramp up production and lower
their costs.
Some utilities use nuclear power,
wind generators, hydroelectric dams or geo-thermal
energy. Coastal areas may use tidal energy. High oil and
gas prices and tax incentives will drive more use of alternative energy. Thermal
coal (steam coal for power plants), coking coal (metallurgical coal for making
coke to make steel in blast furnaces) and PCI coal (pulverized coal
injection, a substitute for coke) and uranium mining,
milling, processing and exploration companies also benefit from increasing
energy demands. There are 441 operating nuclear power plants worldwide,
with another 140 nuclear plants in planning or under construction. These
plants currently require 180 million pounds of uranium (U3O8) per year.
Mining companies are only producing about 100 million pounds per year, with
remaining demand currently met from limited secondary sources such as
recycling.
More uranium is needed from mining operations. A uranium
shortage has been driving up uranium prices to record levels. Typical uranium ore deposits contain 1 to 4 pounds of
uranium per ton (.05% to .20% U3O8). It takes about 5 to 10 years (3 to 6 years
for permits) to develop a
newly discovered uranium deposit into a producing mine! Some jurisdictions
are more mining friendly and have faster approval procedures. In-situ
mining is less expensive and more eco-friendly than open pit or hard rock
mining. [Keywords: uranium oxide, U3O8,
uraniferous ore, yellowcake concentrate,
uranium hexafluoride, UF6, uranium dioxide, UO2, isotope, U-235, U-238, low enriched uranium, LEU, separative
work units, SWU] Thorium, a silvery white metal extracted from the
phosphate based mineral Monazite, is an alternative to uranium, and has safety
and environmental advantages when used in nuclear power plants. A "Clean Energy" mutual fund is now
available.
Click
here for advice on uranium stocks and alternative energy
investments.
 Gold,
Silver & Platinum. We follow gold, silver and
platinum precious metals investment opportunities. We can assist you
in selecting stocks of gold, silver and platinum mining exploration and production
(E&P) companies, penny stocks, royalty income companies, gold mutual funds,
ETFs and bullion
bars. Click
here for advice on gold and silver investments.
Water. Water is a
precious resource due to growing world population, especially during periods of drought, emergencies and disasters.
In some areas, underground aquifers are being depleted. In other areas,
water has been polluted by fertilizers and industrial chemicals. Over 80%
of water use is for agriculture. There are investment
opportunities in water rights, water resources, utilities, pumps and equipment, filtering, bottling, desalination and
recycling. Frozen water flakes (snow) is a valuable resource for the skiing
industry. Click
here for advice on investing in
water resources.
Food & Agriculture.
There are
investment opportunities in food, agriculture, and
livestock. Shortages caused by drought,
bad weather or other factors can cause
prices to rise, and there is increasing demand for
food and commodities from China.
Information and updates on Mad Cow
Disease can be found at the USDA
website. Mad Cow Disease creates
investment risks and opportunities in US and
foreign beef suppliers, processors, agricultural
equipment, restaurants, steakhouses, organic food, other protein foods such as
poultry, fish and goat meat, animal tracking systems, and
disease testing.
Bird
Flu and Swine Flu. Avian
influenza (H5N1 virus), or
bird flu, has affected the poultry industry, with millions of birds
being killed to prevent the further spread of the disease. Fear of the
bird flu also spread and affected some consumer behavior, such as
avoiding eating chicken, buying face masks and stocking up on flu medications
and emergency supplies. Similar reactions occurred due to swine flu in
pigs,
initially reported in Mexico. We encourage you to read more about swine
flu (H1N1 virus) and bird flu to
educate yourself and to be prepared. We recommend preparation, not panic.
Swine Flu Brochure
Contact us for information on investments
and strategies related to bird flu or swine flu.
Bird Flu Pandemic: Threat or Over-Reaction?
What the Experts on Both Sides Aren’t
Telling You
A United Nations health official warned a flu pandemic could happen any time and
kill between 5-150 million people. A Bush administration report warned the U.S.
is woefully unprepared for what could become the worst disaster in the
nation’s history. Skeptics challenge this as media hype and potential for boon
to vaccine manufacturers. Learn the facts and how we can prudently use natural
medicine to reduce risk. Homeopathic medical literature contains numerous
reports of successful treatment of a variety of diseases with homeopathy. There
is evidence that patients fared better in homeopathic hospitals than in
traditional ones during epidemics such as the 1918 flu pandemic. Learn what the
homeopathic approach has to offer. After 22 years of holistic family practice
integrating homeopathic medicine, clinical nutrition, and stress management, Bill
Bergman, MD, now maintains a stress management practice in Denver and is
executive director of the public, non-profit Rocky Mountain Resource Network.
US:
Banks should prepare in case bird flu spreads
Wed Mar 15, 2006 11:28 AM ET - WASHINGTON
(Reuters) - U.S. bank regulators on Wednesday advised financial institutions to
have contingency plans in place in case avian flu becomes pandemic.
"Financial institutions and their service providers supply essential
financial services and, as such, should consider their preparedness and response
strategy for a potential pandemic," the Federal Reserve, the Federal
Deposit Insurance Corp., the Office of the Comptroller of the Currency and the
Office of Thrift Supervision said in a statement.
You can buy books about Bird Flu in our Book
Store.
Click here to check the common flu and avian bird
flu status for your zip code and information on
Tamiflu.
Find more bird flu
information at PandemicFlu
(official government website with news, maps, information, planning and
preparation checklists for individuals, families, businesses and communities),
the Centers
for Disease Control (CDC) and the US Department of Agriculture.
Boer
goats. We have also done investment research on the fast growing demand
(30% per year growth rate) for goat meat for the
ethnic, Halal and health food markets. Boer goats, from South
Africa, are meat goats, not dairy goats, and are raised mostly by small scale family
operations. We have found publicly traded stocks that are raising goats on
a large scale. Contact us for investing advice. More information on
goats at BoerGoats.
Look for goat meat (cabrito or chevon) at your local meat market or Mexican or
Middle East restaurant. Goat milk and cheese from dairy goats is readily
available in grocery stores.
Click
here for advice on food and agricultural investment
opportunities.
Timber trusts are available which pay
dividends, based on the prices paid for
timber. If you don't sell the timber now, it
keeps growing and you have more to sell
later. Larger diameter trees are more
valuable. Click
here for advice.
Commodity Index Comparison. Click here
for our FREE REPORT on:
Commodity
Funds, showing a
comparison of the composition of several
diversified commodity funds and indexes. Some mutual funds
invest in commodity index linked notes tied to the
rise and fall of commodity prices. We include information on the Rogers
International Commodity Index (RICI) fund created by famous investor, author and
world traveler Jimmy Rogers. You can buy his book "Hot
Commodities" in our Book
Store section. Click
here for advice on commodity
related investments.
Master Limited Partnerships (MLPs). Click
here for our FREE REPORT on: MLPs
including oil, gas, pipeline, propane, coal,
minerals, timber, agriculture, real estate and
others. MLPs generate income and offer tax
benefits. They are not well-suited for IRA accounts
because earnings above $1,000 will be considered
unrelated business taxable income (UBTI) by the
IRS. Several new funds are available that invest in many MLPs for
diversification. Click
here for advice on MLPs.
Click
here for a Free
Consultation on investment opportunities
in Oil, Gas, Gold, Silver and Natural Resources.
Or request one of our FREE REPORTS
listed above, or join our Free
Newsletter.
Thank you for visiting our web site!
|