| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Oil: Nothing has changed about basic fundamentals. Total production will be on an undulating plateau but into an irreversible decline. Prices will gradually rise from about $70 to about $95 over the next 10 years or so. Last fall's price was a total aberration caused by a mistake that the Saudis made. Very attractive investment environment for both oil and gas going forward | 2008-01-29 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Natural Gas: Total Production in the US peaked several years ago and is levelling out in Canada. He is anticipating a significant long-term irreversible decline and prices will have to be high enough to cause a decline in consumption. There has been an aberration for the last 2 years, primarily because production has been restrained by developing tight gas through closer and closer drilling as well as new techniques. Prices will rise gradually from $7 to about $11 during the next 7 years. Very attractive investment environment for both oil and gas going forward | 2008-01-29 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Henry made comments throughout the show along with Dean Orrico.
Henry was more general while Dean dealt with stocks.
Henry's comments:
Natural gas and crude prices are rising. This is because all the easy exploration and development have been done, and now the hard ones are left, which means you have to have higher prices to justify the work needed to get at the heavy oil, or the oil sands.
Significant commitment to upgrading investment, and refineries around the world.
The most aggressive investors are the exporting oil companies.
The expansions have been underway for a year and a half or two.
Thorium will is unlikely to be a uranium replacement for nuclear power.
Towards the end of the year, we will see the first application for the first new nuclear power generation plant. This will trigger several more.
Canada oil sands are a unique resource in the world oil supply demand picture. Canada's oil sands represent reserves second only to Saudi Arabia. All of their work identified the Canadian oil sand to be the only location in the world where they are forecasting increasing production as far into the future as you can see. It will be the dominant oil producer in the world over the next few decades.
Very large ongoing expansion in ethanol production, and more recently a number of smaller bio-diesel facilities being started, thanks to government subsidies. Ethanol is subsidized to about $44 dollars a barrel, (22 locally, 22 as an import duty), Bio-diesel is subsidized as well. In the case of ethanol, the energy required to produce it is more then can be produced by the product. It's a political solution, not a practical one, not sustainable. There is a mandated ethanol amount in the gas in the US. This is forcing a huge push on production of ethanol which has not been reached yet. In a few months, it will zoom past the mandated levels, and there will be a drop in the price of ethanol, (and corn and soybeans) which will reduce the interest in investors for these alternative fuels.
| 2007-06-14 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Forecasting oil/gas for about 60 years. Into a new era that he calls “scarcity and price rationing”. All easy things in getting supplies has been done and now it is a question of the price required to constrain consumption to match supply. Expects oil will be $55-$65 when things are normal. For every 100,000 barrels per day disruption there is a loss of $1 a barrel. Feels we are close to a bottom for both oil and gas. | 2006-10-06 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Alberta is the most attractive place to invest in energy in the world because of its huge resource base and less exploited than the US. Located adjacent to the largest market in the world that has a voracious appetite for oil and gas. The only area in the world that has the real resources for continually growing oil production as far in the future as we can see. | 2006-10-06 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Close to 100% of his investments are in energy with 60-65% in Canada. Not concerned about the rockiness of the sector as he has been in a lot of them before. | 2006-10-06 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | We have had an unusual weather event in that January/06 was the warmest in all recorded history of the US. If there were no capital dollars used this year to increase gas production, total gas production would fall about 32%. We have to keep increasing drilling to keep production from falling. | 2006-10-06 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Liquid Natural Gas - Significant expansion of LNG producing capacity in the world and there will probably be a tripling of total production in the next 10 years. Analysis shows that very little is imported to the US as gas prices are higher in Europe and Asia. Won't have any significant influence on the supply balance. | 2006-10-06 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | The downturn in oil prices in 1998 came about due to world pressure on the US to remove the embargo on Iraqi oil at the time of the Asian currency crisis. Currently, it would take a major recession in the US to decrease the demand for oil to bring prices down to the low $30’s. | 2006-10-06 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | The need to reduce strategic reserves in the US is very remote. The treaty was signed by all the OECD countries and every country is required to maintain certain levels. | 2006-10-06 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Hydrogen - On the basis of current technology, the production of hydrogen requires a great deal of energy, the most direct way being electrical energy to split water into hydrogen and oxygen. Not a very good approach at this time. | 2006-10-06 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Coal to produce liquid fuel - This is a method used by South Africa because they had no oil. The technology has been well demonstrated but is a relatively expensive process. Until the world runs one of cheap, plentiful supplies of natural gas, it probably doesn't make any sense. | 2006-10-06 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | He is bullish on Oil and gas because of the depletion of oil and exploration. He predicts that oil prices will be at the $50 to $60 level, but there will be short term volatility where the prices could go from $50 to $125.
He believes oil production has peaked. He also said we will never run out of oil, but the price of oil will increase as the supply decreases. Boom times in Canada, it will be a large run because of the oil sands and reserves. He believes that the Canadian based oil sands will be the largest in the world.
For natural gas his forcast will see gas around $7 to $10. Again we could see short term volatility from a day to a week depending on circumstances (eg, hurricanes) Weather was mild in January so now we have extra gas in storage. This time of year prices go down as the heating season comes to the end. It's a buying opportunity for natural gas.
Service Sector-
He believes the service sector represents an attractive sector to invest in for the long term. As we go after lower and lower grades of gas, we are going to have continually increasing inputs of technology, equipment, investment, manpower per barrel and cubic feet recovered. So there is a real basis of service income and profitability to occur.
His investments are mostly weighted to the energy service sector. | 2006-03-12 | |
