Oil And Gas Investments Create Higher Profits
On August 30, 2011 Alexei Kokin, a knowledgeable oil and natural gas analyst at UralSib Financial Cooperation, spoke about how gas prices will increase due to higher demand since the nuclear disaster in Japan. Countries like Russia and other governments are expected to take a step towards investments in safer sources of energy, like gas. Alexei and others feel that there will be a slow and steady increase globally in the next 6 years.
Many other analysts believe that even though jobless claims in the United States keep increasing, the demand in the U.S.A. for energy from fossil fuels keeps increasing without signs of slowing. The global demand for crude oil and natural gas is still there. The US markets are currently trading oil at ~$88/barrel, while in the European Countries the Brent Crude index is trading at ~$115/barrel.
This website focuses on Oil instead of Natural Gas because most of the wells we write about produce both products. If one is trading at $88/barrel and the other is trading at $4/MCF, we focus on where the bulk of the money is at. Will Natural Gas increase over time? Alexei Kokin thinks so and so do we, but natural gas should be looked at as icing on the cake of investment projects with two products.
Projects that this website are focused on are oil-based because the world is using more energy from liquids such as crude instead of gas. The main reason for this is because liquids are easier to transport, and you get more energy per unit of oil as opposed to natural gas… after all, we are only concerned with energy and profits individually and globally to make sound investments.
Source: Bloomberg.com. To view this video you must have IE9 or better