Dear Wealth Daily Reader:

This week has been an epiphany for the market, validation for us at Wealth Daily, and a confessional for Big Oil.

Forgive me, World, for I have sinned . . . it’s been 75 years since my last confession.

Okay, here we go.

First into the confessional this week was the International Energy Agency (IEA). As we reported in Wednesday’s Wealth Daily , the usually sanguine IEA sounded unusually negative and alarmist about the recent price spikes in oil:

According to the IEA’s World Energy Outlook for 2007:

“An abrupt escalation of oil prices after 2015 as a result of a global supply crisis cannot be ruled out.”

“ . . . it is very uncertain whether new oil production in the period to 2015 will be enough to compensate for the natural falloff in output from existing oil fields and keep pace with the projected increase in demand.”

“The consequences of unfettered growth in world energy demand are alarming.”

Whoa.

I want you to think about something. Oil prices are already approaching $100 a barrel. If the IEA is warning us about an “an abrupt escalation of oil prices,” what exactly does that mean?!

Could it mean $250 a barrel . . . $300 a barrel . . . $480 a barrel?

Yes.

Right now, with oil trading for $95 a barrel, we’re paying the equivalent of 15 cents a cup. There’s 667 cups in every barrel of oil. So $95 divided by 667 = $0.15.

No matter how you spin it or slice it, oil is still insanely cheap. I know that sounds absurd, but it’s true.

So the price of oil could (will) go way up . . . to levels unimaginable.

OK, next into the confessional is Tony Hayward, CEO of British Petroleum.

Forgive me, Shareholders, for we’ve cooked the reserve numbers.

Here’s what Tony confessed yesterday:

“Every geopolitical event causes a spike in the price [in oil], but these spikes only happen because the underlying market is itself tight. For the medium term, the era of cheap energy is behind us.”

For penance, I want you to read Lies, Damn Lies and Statistics: The Manipulation of Public Opinion in America. Read it three times.

Let’s move onto the next sinner.

Forgive me, Shareholders, for we told you everything was okay, when in fact we knew the world was heading into the abyss.

From the CEO of ConocoPhillips, Jim Mulva . . .

“Oil and gas production fell at all of the largest publicly traded oil companies in the third quarter, as aging oil fields, declining access and soaring costs for drilling services took their toll on output.

“I don’t think we’re going to see the supply go over 100 million barrels a day. Where is it all going to come from?” --November 8, 2007

Good question, Jim.

For your honesty, your company’s stock will sell off 23%.

Last, but not least, is George Bush.

Here’s an exchange he had with a journalist two days ago:

Question: “Mr. President, with oil approaching $100 a barrel, are you concerned that your hard words for Iran on its nuclear program are helping drive up oil prices, which can end up hurting the U.S. economy?”

Bush: “No. I believe oil prices are going up because the demand for oil outstrips the supply for oil. Oil is going up because developing countries still use a lot of oil. Oil is going up because we use too much oil, and the capacity to replace reserves is dwindling. That’s why the price of oil is going up.” --November 7, 2007

Penance?

How about a 31% approval rating?

Okay, now for some saints.

Here’s a collection of quotes from Wealth Daily and Energy & Capital over the last three years:

“The fact is that we’re at a tipping point. The world’s oil supply has been flat while demand is growing up to 3% annually.

“Will we see a barrel of oil cost $100?

“That’s a possibility. As I said before, the next year is going to test the theory of peak oil.”
--Keith Kohl, August 7, 2007

“ . . . heck you can kiss $45 a barrel goodbye . . . maybe even $50! In fact, we’re probably facing a price spike between $80 to $100 a barrel within the next 24 months.”
--Brian Hicks, January 18, 2006

“Our resident energy expert, Mike Schaefer, believes that oil prices will continue their rise . . . heading to at least $80 near term . . . then to $105 a barrel in the next three years.”
--Brian Hicks, February 7, 2006

“ . . . I think these estimates are a bit on the conservative side, and we should see $80 oil this year, no problem.”
--Chris Nelder, January 18, 2007

“Today, we’re calling for the price of oil to reach over $100 within the next twelve months.”
--Brian Hicks, October 15, 2007

“As I’ve said before, if there is an open confrontation between the U.S. and Iran, we’ll be lucky if oil prices ever drop below $100 per barrel again.”
--Keith Kohl, February 26, 2007

“When oil spirals up to and beyond $100 per barrel as a result of declining production, a domino effect begins. Oil is energy. Energy prices skyrocket. Everything else follows.”
--Phantom Trader, February 24, 2005

“IEA predictions point to a 53 percent surge in global energy needs over the next 25 years and oil prices running in excess of $100 a barrel by 2030.

“I suspect we’ll see it much sooner that!

“The fact is that oil prices are going to skyrocket. I’m talking way over $100 a barrel.”
--Keith Kohl, February 26, 2007

“I think we’ll see oil over $100 per barrel before 2009.”
--Keith Kohl, July 10, 2007

“The price of oil could get as high as $185 a barrel with oil hitting $80 a barrel within the next two years.”
--Brian Hicks, March 3, 2005

“ . . . within the next three to five years, Saudi oil production is going to collapse by as much as 30% to 40%.

“Clearly, this would push oil well over $100.”
--Mike Schaefer, January 16, 2007

“The long-term fundamentals, on the other hand, are still in place for a continuing energy bull market that will eventually push oil prices to well over $100 a barrel.”
--Luke Burgess, October 10, 2006

As usual, keep reading Wealth Daily. We’ll give it to you straight . . . the good, the bad, and the ugly.

Profit, don’t panic,

Brian Hicks

It's quite possible - if your dear old Ma leaves you a few thousand GB pounds - to make wind-energy systems which not only
1) Return around 5% of their cost per annum
2) Fail totaly to be noticeable in a landscape.

Most governments, however, prefer to ignore this and pour billions of pounds, Dollars, and tons of CO2 into the air so that they can be seen to be "doing something"
What happened to "running-around like headless chickens" ? It always used to work ok, and is not environmentally detrimental. It insults only chickens - and they don't have to watch.
For details of this extremely serious wind-energy system please contact me. The World NEEDS to be MAKING these things - or at least STOP making 80m high metal pricks with helicopter wings atop. At an official 0.13% of cost returned per year, these are PURE environmental damage masquerading as benefit.
I think that is obscene enuf !
Thanks for the reading, I don't get a lot of time for it, like yourself ?
Bert

Gentlemen:
May I remind those OH-NO-BIRDs we have over a trillion barrels of oil locked up in oil shale, trillions of barrels in coal, and a large pool off the coast of FLA. equal to the pool in Saudi.
Anwar has a 13 year supply at our current useage. I don't think we are out of oil or close to it but if you want to panic the lemmings keep repeating the lie it will become truth, like,"I didn't have sex with that woman, not one time."
Can we have a little honesty?
The truth is the Moveon party will not allow drilling in the US or allow new modern, energy efficient, non-polluting refinerys to be built in this country. Why? Because we would get out of our so called crisis and they could not make slaves of us all.

About 3 or 4 years ago, I read where Abby Cohen of Goldman Sachs called for $100 oil one day. I do believe she was the first to say it. Oil was below $50 at the time.

living in Oklahoma, I was hearing
this news 20 years ago.
Those in the oil business knew this. Not news to me Frustrating to hear. Big oil was blamed by the blind deaf and dumb public and press who totally ignored the facts of life (always someone else's fault. not mine)
we saw the oil come and go in our state. Come see what is in store for all the other big oil fields.