[Rhodes22-list] Nuclear Energy - Good Morning Roger

[brad haslett]

Roger,

Glad to see I'm not the only one on the computer at 5
am.  I'm sitting here staring at my oil & gas library
thinking its about time to sit down with Fan and start
working on our taxes.  That will involve divulging how
I lost my ass on the gas well I participated in (they
hit gas at 11,000 feet and then the ancient ocean
flowed in when the casing was perforated).  Oil & Gas
Journal, Oil and Gas Investor, and every other
industry rag has been lambasting all the titles I've
read, "Hubbert's Peak", "The Party's Over", "Out of
Gas", "The Oil Factor", etc.  Both Shell Oil and
Apache made major write-downs in their reserve
accounting last year, partly in response to
Oxley-Sarbannes.  Now that the CEO of Chevron-Texaco
is saying we can't replace reserves, the industry
press will start singing a new tune.  In many ways
this is good news to domestic crude producers. 
Capital will be easier to access, and new production
and stimulation methods become cost effective.  That
still leaves us way short on production vs.
consumption.  Oh yeah, then there's China.  China is
agressively buying petroleum properties all over the
world, including tar sands in Canada.  The Saudi's are
already on record saying that the world economy didn't
tank at $50/barrel oil and the new basket price should
be in the 40's. What the Saudi's won't talk about is
how they've raised their reserves twice without
drilling new wells and why the water cut is rising on
current production. My backyard neighbor, an energy
banker, is making deals to marginal coal mines in
Southern Illinois for high sulfur coal.  The demand is
so high that utilities are willing to buy scrubbers
and purchase poorer quality coal.  Sometimes I think
this country will only wake up when peoples credit
card limit is insufficient to fill up their cars and
the lights start flickering in their house.  Having
those nuclear wastes buried 10,000 feet deep in the
desert won't seem like such a big deal then.

Brad

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