The Axis is spinning (Axis of Oil:Russia,Venezuela,and Iran)

Fxstreet ^ | 06/29/07 | Phil Flynn

[TigerLikesRooster]

The Axis is spinning

Fri, Jun 29 2007, 14:26 GMT

by Phil Flynn

Alaron

What is the biggest threat to the world energy markets and the future security of all oil consuming nations? It is of course the “Axis of Oil". And it seems as the weeks go on the "Axis of Oil” is spinning its errors faster and faster and seems to be getting to the point where they are out of control. Who or what is the “Axis of Oil”. Well as I have mentioned before they are the countries of Venezuela, Russia and Iran. Countries that are increasingly becoming intoxicated with the power of oil. The power comes from controlling all that oil and natural gas in a world that is becoming increasingly more and more dependent upon what they have or seek to steal.

This week two members of the “Axis of Oil” - Russia and Venezuela - were especially active and transparent so the world can see their true colors. Venezuela nationalized their oil industry and kicked all US oil interests out. Russia is doing their best to do the same. They want to use oil not only as an economic tool but as political weapon. It was a bad week for those who care about freedom, free markets and the future security of oil and gas for consuming nations.

The most obvious assault on the rule of law and the security of the world's oil supply was the strong arm tactics used by Hugo Chavez to force US and Canadian oil companies out of Venezuela. And now Mr. Chavez is hinting that he wants to pursue nuclear weapons.

Russia and the errors they've made with oil and natural gas have been well documented. Putin, like Chavez, has little regard for the rule of law and the first sign that things were not all right with Russian President Vladimir Putin was when he took over YUKO’s. Then Russia started squeezing out Shell and BP from large oil field projects. Now Russia wants to lay claim to all the oil.

Russia is even laying claim to gas and diamonds to be found in the North Pole! This is impossible because everyone knows that the North Pole belongs to the great man himself...Santa Claus! But a report from the Daily Mail says that the Russian President and his scientists claim that an underwater ridge near the North Pole is really part of Russia’s continental shelf. I guess it's kind of the same way Saddam Hussein used to think Kuwait was part of Iraq.

This is another disturbing development from the Axis of Oil and very bullish factor the entire oil complex. Once again while the US Congress sits idly by our economic future is being divvied up and exploited by the “Axis of Oil”. Is anyone in Washington paying attention?

/snip

[TigerLikesRooster]

Ping!

[SAJ]

Here we go. Phil Flynn's at it again.

Does anyone know a more persistent permabull than Flynn?

[P-40]

Is anyone in Washington paying attention?

Some are. Congressmen like Joe Barton are doing a great job.

[prophetic]

Well these 3 idiots can easily be removed by targeting their gathering with one well timed cruise missile!!

Boom!! and these 3 idiots are no longer a problem and are replaced with more compliant ones.

There once was a time not too long ago when America was well feared & respected in the world.

However with all the politcal correctness bullshit that has enshined this country we're afraid of doing anything for our own good and are literally scared of our own shadow!!

Oh how it greives my heart to see the CIA become a woos and a bunch of pansy waist clowns becasue of PC crap and they have lawyers looking over everything they plan to do. I really really hope I'm wrong on this though...

[Attention Surplus Disorder]

It's depressing (to me) to think that if somehow, tomorrow, the national "opinion" shifted in favor of nuclear power as the only currently-conceivable solution to the overwhelming majority or our energy concerns, we would still have to hear and worry about every nuance of this crap for a solid decade. And whatever "FU" message it would send to our Mideastern pals would be icing on the cake. The yellowcake.

[expat_panama]

anyone know a more persistent permabull than Flynn?

You got me there.   I was all set to drop names like Krugman and PCRoberts but this Flynn character is in a class of his own.

OK, maybe we could say that Venezuela's current strongman is selling us one small slice of the pizza --but Russia is no more than a 'me-too' in back of places nobody's even heard of, and Iran get's lumped into "other".

My take is that anybody who's wasting investment capital and mental energy on this "axis of oil" schtick is probably going to be running out of both real soon.

[RightWhale]

This is part of Peak Oil theory. Peak Oil does not rely on running out of oil, but of the cost of oil rising beyond control due to any or all of a number of factors, one of which is the absence of Cheap Oil.

[SAJ]

The world-class energy analyst, Jim Williams of WTRG Economics, has been watching the BTU spread recently. NG, from March until a week or so ago, was trading consistently at 68-69% of the price of crude.

This past week-10 days, NG has cratered to just 53% the price of crude. This is an enormous move in such a short time, and will have consequences to the price of crude in short order.

Jim thinks the NG traders have twigged to the fact that, absent hurricane damage or a new Middle East war this year, we are going to have a shjt-pot full of energy this winter. He thinks crude traders are too blinded by geopolitical possibilities to see the freight train coming down the track.

Don't know if he's correct -- time will tell, obviously -- but he makes a good deal of sense.

As to nukes, well, it's simply unconscionable -- and bloody stupid -- that the damned gooberment won't get out of the way on this.

That's a very prescient observation in your last remark, mate!

[AdmSmith]

Someone told me the other day that Venezuela is importing crude from Russia to fulfill is export obligations, but I have not found any info in any newspaper yet.

[AdmSmith]

The U.S. Department of Energy estimates Venezuela’s reserves at 1.3 trillion barrels, more than all other OPEC members. Yet, the country is now importing 100,000 barrels of Russian crude oil a day.

http://www.theglobeandmail.com/servlet/story/LAC.20070630.RFIVETHINGS30/TPStory/Business

[mysterio]

Energy independence now.

[expat_panama]

...absent hurricane damage or a new Middle East war this year, we are going to have a shjt-pot full of energy this winter...

For months now my stock screens have been spotlighting energy stocks, but now I'm thinking hard along the lines of keeping my finger near the 'sell' key while taking a really good look at sectors like say, tech, health, and retail.

There's no way around it; try as I may, sceening always seems to end up with a strong backward looking bias...

[SAJ]

Just fwiw, I'm renewing my interest in buying water shares, and more recently, unit trusts in companies dealing in water, and now water ETFs.

Claymore, ticker CGW, a more-or-less brand new issue, looks very attractive. Bought 400 to start below the issue price...the thing here is the dividend, which we won't know until the 1st quarter of operations is complete. I'm guessing something on the order of 5.7%/year with a very good shot at cap appreciation into the bargain.

I'll be kicking myself if I'm materially off on this estimate, of course.

However, I think it inarguable that the world's political structure mitigates strongly toward potable water shortages in the medium-term. After all, was Will Rogers wrong? ''Buy water, they ain't makin' any more of it.''

Couldn't resist.

Best to you, m'friend!