Iran and the Next Big Thing

Yes, a post focused almost entirely on politics although all politics do have economic consequences.

What Happens if Iran goes Nuclear?
Name says it all...

Are our Enemies our Best Friends?
In Iraq, it seems that may just be the case. Apparently the US has somewhat realized that the Sunni 'insurgents' also hate Al Qaeda. Maybe the two should join forces!?! Additionally, Iran seems to be entering the picture as a calming influence - contrary to popular discussion. It seems that Iran's size and influence may be able to moderate the Shi'ites in Iraq.

The World War IV Draft
The WWIV Explanation and Rebuttal

Royalty Trusts

Handy Two Page PDF on Peak Oil and Its Impact

Oil and Alternatives
A discussion of Peak Oil and potential alternatives - both in the form of renewables (solar, etc) and cheaper, dirtier energy sources (coal, etc).

China Turns to Coal and Renewables
China realizes that its current growth rate has and will outstrip its energy supply. In response, China is requiring a reduction in energy consumption along with requiring a growing percentage of its energy from coal and renewable resources.

Rising Natural Gas Prices Increase Agriculture Prices
Natural gas is used to produce fertilizer for fields. As the price of natural gas rises, so does the price of fertilizer. Eventually, this price increase will be passed along the supply chain to wholesalers, retailers, and eventually consumers. Commodity prices will be rising.

Map of European Gas Pipelines

Oil to $100 and Canada
A prediction of oil reaching $100 per barrel by the end of 2007. As the price rises, the cost of developing oil sands and other resources in Canada will become more and more economically viable. There is still time to invest.

General - Income and Royalty Trusts

Motley Fool on Trusts
Be aware of depletion. Trusts make money by selling resources or assets. Once these resources are depleted, trusts either dissolve or need cash to make acquisitions. Depending on your investment strategy, you may want to sell these trusts before depletion occurs.

Hoovers on Royalty Trusts

Top 50 Canadian Income Trusts

Another Canadian Energy Trust List

Another Canadian Royalty Trust List

Canadian Trusts and Favorable Tax Treatment

Yahoo Finance
As always, do your research! Yahoo Finance is a great site along with its message boards.

Theme of the Day: Peak Oil

The backstory on Peak Oil
Peak Oil was coined by M. King Hubbert, a scientist who worked for Shell Oil. He predicted oil production would peak in 1970. Additionally, some members of Congress are organizing to address the forming energy crisis.

Peak Oil and the End of an Empire
An explanation of Peak Oil and its influences on our policy. Provides more fuel to the fire that the US invaded Iraq for the sole purpose of securing the oil deposits below that country. Will this lead to an economic collapse in the US quickly followed by a world wide economic collapse? This article even goes so far as to suggest the events of 9/11 were orchestrated in order to give us a reason to invade these oil-rich, Middle East nations.

Why We Should Pray that the Peak Be Soon
According to this article, the sooner we reach Peak Oil, the sooner we can end our addiction to fossil fuels. A recap of the general issues we face.

Oil going to $200 per barrel or higher?
Matthew Simmons, former advisor to President Bush, suggests this may be the case in the next few years. Price increase attributed to increased demand and decreased supply.

Another Peak Oil Article
We experienced back to back 33% increases in the price of oil during 2004 and 2005. Will anything change or are we heading to $6 gas at the fuel pumps?

Is this the energy curve of history?
Frank Cicela, an Alcoa employee, discusses his findings from the second U.S. Conference on Peak Oil and Community Solutions in September at Yellow Springs, Ohio. As you may or may not know, Alcoa is a large aluminum producing company. Producing aluminum is very energy intensive. As the price of energy increases, so does the price of these commodities.

Russia turns the gas on, but does not solve the problem
Even though Russia restored the flow of natural gas to Europe via Ukraine, that does not mean the problems have gone away. EU countries pressure Russia to do the 'responsible' thing. Meanwhile, Russia is taking part in a meeting of the G8 countries - main topic: energy security.

Britain is becoming too dependent on imported oil
It seems the US is not the only country whose oil imports continue to increase in size. Britain, now only 90% self-sufficient, is seeking alternatives. Maybe that is part of the reason Tony Blair is such a good friend to the US.

EU seeking alternatives to Russian gas
EU eyes the oil producing nations of Northern Africa and Turkey to help reduce its reliance on Russia / Ukraine pipeline for natural gas.

More commodities news and a Bank of Walmart?

Labor Strike at Chilean Copper Mine
A labor strike at the nationally-owned Chilean copper mine, Codelco, has led to a jump in copper futures in New York.

Bank of Walmart?
According to Walmart, they desire banking operations in order to reduce their costs related to payment processing. However, others in the banking industry fear this may be the first step in setting up a Bank of Walmart.

Commodities on the rise? More Middle East Instability.

Richard Rainwater foresees a crisis in America
Richard Rainwater discusses the instability of world markets and how such instability could lead to a crash both worldwide and here at home. Of particular attention is the concept of 'Peak Oil' - have we surpassed the world's oil producing capability?

Analysts See Price of Oil Staying High in 2006
Related article.

The Future Bull Market of Commodities
An expansion on the concepts discussed by Richard Rainwater. A VERY long but indepth discussion surrounding the lack of insight into the true state of the world's natural resources. Particularly, there is a fear that oil reserves have been overstated for years - or simply no longer exist. Once this cat is out of the bag, expect problems - big ones.

Energy Security an issue in Europe?
Interesting as it relatest to the theme from the article above which mentions that 'energy security' or the willingness to security the world's energy reserves using force is the driving priority in foreign policy around the world. With the recent natural gas disruption from Russia to Europe (particularly Germany), one has to wonder. Is the EU going to invade Russia and follow in the footsteps of the US who invaded Iraq. Hmm... Europe invading Russia - when was the last time we heard that...

Oil Markets React to Russia/Ukraine Situation
Related article.

US Confrontation with Iran?
It appears the US is moving ever closer to engaging Iran. Apparently the issue at hand is the desire of Iran to enrich Uranium to be used to produce power. Most analysts dismiss this claim as a cover for a nuclear weapons program because Iran is 'known' to be the world's second-largest oil producing nation. Do we plan to attack them like Iraq - to secure energy reserves? Or, as suggested by some, have OPEC and Iran overstated remaining supplies? Maybe Iran knows that it is running out of oil and is attempting to transition to nuclear power before the crunch. The United States should take notes.

More Uncertainty Surrounding Iran and the Middle East
With the removal of Saddam Hussein, the free elections in Iraq are indicating a Shiite-led government. Does this signify the beginning of a political alignment between Iraq and Iran? Is this the beginning of an Islamic-bloc similar to the cold war Soviet bloc? Pat Buchanan discusses the need for diplomacy to win in the Middle East before it is too late.

Is Coal an Investment Opportunity?
With the recent attention due to the trapped miners in West Virginia, maybe it is time to examine coal stocks - especially if we may be facing oil shortages soon.