Tuesday, October 04, 2005


Russia has increased its oil output by about 5 million barrels per day in 5 years. I believe it was an article in the WSJ that showed the rate of growth slowed but is picking up again.

US consumption has not grown in 30 years. I do not believe it will grow in the next 30 years. China and India will consume substantially more but the real energy growth in these nations is in coal and nuclear electricity.

If I were looking for a conservative investment, I would buy GE and avoid XON. XON pays a strong dividend and is a very profitable company. The oil business is simply not a growth business. The business is in the news; investors have piled on; values are elsewhere.

The current disconnect between crude prices and gas prices will be corrected over time. The planet earth will be well severed by an increase in nuclear power and slower growth in the use of fossil fuels!
Fossil Fuels to becom Relics

Nuclear Energy

Jeff Berg on Nuclear Power

Renewable Energy