In this week's report:

Oil's price compounding rate over the last decade.

Is the U.S. at "Peak Home" square footage?

Human causes of seismic events?

Ideas for selling more cars and increasing average mpg.

Oil supply surplus and a gasoline supply shortage???????

HOUSTON (Reuters) – "Some 30,000 refinery workers that operate half of the U.S. fuel-making capacity could go on strike if they fail to renew a union contract that expires early Sunday, union officials said on Thursday." This is just the kind of news that we need to hit the markets. Sometimes no matter how hard you look good news isn't there to find

http://www.reuters.com/article/businessNews/idUSTRE50S5KP20090129?feedType=RSS&feedName=businessNews

LONDON (WSJ) – "Hundreds of contract workers walked out of oil refineries and power plants across the U.K. Friday in a widening protest over the use of foreign workers." (WSJ subscription required) The U.S. isn't the only place labor could soon impact supply.

http://online.wsj.com/article/SB123331716317333093.html

Oil Rises, Oil Falls.

Jim Puplava posted a very good review of where things stand with oil supply and price this Wednesday. It would be a good read after the comments I make concerning oil prices over the last decade in this week's report. There is no one right answer to what is ahead so accumulating as many thoughts as one can is the best course of action. It is long but worth the time with good charts and data.

http://www.financialsense.com/stormwatch/update.html

Link to this week's Master Resource Report 2009-01-30

Disclaimer

This publication is dedicated to the education of readers and is an information service only. While the editor is licensed to offer investments and investment advice, the information provided herein is not to be construed as an offer to buy or sell securities of any kind, is the opinion of the author and not endorsed by KMS Financial Services, Inc. It is possible at this or some subsequent date, the editor and/or affiliated parties may own, buy or sell securities discussed in this newsletter, or based upon information provided in the newsletter, or contrary to information provided in this newsletter. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. We make every effort to provide timely information, but cannot guarantee specific delivery times due to factors beyond our control.

In this week's report:

So how did Mexico and the UK do last year?

Is the U.S. at Peak Cars?

More on wave power.

Dubai goes beyond Ski Dubai and air-conditioned sand on the beaches.

Mexico plans to get back to 2007 levels of 3 million barrels per day.

The Associated Press -- Mexico will develop new oil fields to boost sagging output to 3 million barrels a day by 2015, while asking the U.S. to cooperate in tapping deep water deposits along the maritime border, a top energy official said Wednesday. First off the U.S. should be happy to cooperate on this problem. Their problem is our problem. The scale of Mexico's problem is shown by the fact they are allowing 6 years to get production back to 2007 levels. However this is probably wishful thinking, the huge Cantarell field that provides over half of Mexico's production declined by 31% in 2008.

http://www.miamiherald.com/business/nation/story/853701.html

Link to this week's Master Resource Report 2009-01-23

Disclaimer

This publication is dedicated to the education of readers and is an information service only. While the editor is licensed to offer investments and investment advice, the information provided herein is not to be construed as an offer to buy or sell securities of any kind, is the opinion of the author and not endorsed by KMS Financial Services, Inc. It is possible at this or some subsequent date, the editor and/or affiliated parties may own, buy or sell securities discussed in this newsletter, or based upon information provided in the newsletter, or contrary to information provided in this newsletter. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. We make every effort to provide timely information, but cannot guarantee specific delivery times due to factors beyond our control.

In this week's report:

Norway expects 9.7% declines.

CBS 60 Minutes on oil speculation.

So how much energy does a Google search use?

Are we at Peak Airplanes?

By 2020 China will be as dependent on imported oil as the U.S. is today!!

Reuters (Jan 8, 2009) – "China will become increasingly reliant on imports for its growing oil demand as domestic production sees no big breakthrough in the years ahead, a report by the Ministry of Land and Resources said." So within the next ten years China will be importing ~60% of its oil and by then the U.S. will be approaching nearly 75%. Even more important is their estimate that they will consume 41% of global coal by 2020.

http://www.reuters.com/article/rbssEnergyNews/idUSPEK8934920090108?sp=true

Link to this week's Master Resource Report 2009-01-16

Disclaimer

This publication is dedicated to the education of readers and is an information service only. While the editor is licensed to offer investments and investment advice, the information provided herein is not to be construed as an offer to buy or sell securities of any kind, is the opinion of the author and not endorsed by KMS Financial Services, Inc. It is possible at this or some subsequent date, the editor and/or affiliated parties may own, buy or sell securities discussed in this newsletter, or based upon information provided in the newsletter, or contrary to information provided in this newsletter. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. We make every effort to provide timely information, but cannot guarantee specific delivery times due to factors beyond our control.

In this week's report:

A look at a Peak Oil investment framework.

A look at U.S. diesel consumption.

How much fuel does it take to bring in a pound of fish?

Which will it be Water? Or Oil?

Business Week "Shell applied Dec. 30 in state Water Court to use about 8 percent of the Yampa's peak spring flow." Let me see now the spring flow would be the peak flow during the year, so what percentage of the average would that be? How about during a low flow year??? So which will it be Water or Oil????

http://www.businessweek.com/ap/financialnews/D95IG70G1.htm

The end of "Drill Baby Drill"!

Wall Street Journal "The fall in drilling activity has been especially sharp in the U.S., where the number of rigs operating has tumbled 20% since a September peak, according to a report by oil-field services company Baker Hughes International Inc." We just stepped off of the drilling treadmill of production, increased U.S. domestic production decline acceleration is now just a matter of time.

http://online.wsj.com/article/SB123145390474265819.html?mod=testMod (WSJ subscription required)

By the way if you really want to look silly predict the price of oil this year!!!

Link to this week's Master Resource Report 2009-01-09

Disclaimer

This publication is dedicated to the education of readers and is an information service only. While the editor is licensed to offer investments and investment advice, the information provided herein is not to be construed as an offer to buy or sell securities of any kind, is the opinion of the author and not endorsed by KMS Financial Services, Inc. It is possible at this or some subsequent date, the editor and/or affiliated parties may own, buy or sell securities discussed in this newsletter, or based upon information provided in the newsletter, or contrary to information provided in this newsletter. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. We make every effort to provide timely information, but cannot guarantee specific delivery times due to factors beyond our control.

Best Wishes for the New Year

In this week's report:

A look at U.S. gasoline consumption during U.S. recessions.

No excuse any longer for Bicycle Commuters if it snows.

The SEC strikes again.

Commentary: 1907 Redux

During the current market turmoil of 2008 everyone from market mavens to your online investing uncle have reached back to the Great Depression for anecdotes to describe current economic conditions. Though, despite the endless hours of debate between supply siders and Keynesians on CNBC over FDR's actions during the great depression, few have thought to look further back in history to find a more apt analogy. Since the list of events most remember from that period of US history is short it is no surprise that the Panic of 1907 has fallen through the cracks. One would think that an event termed the "1907 Banker's Crisis" would raise an eye brow or two on the editorial staff of the WSJ. Upon further review, a year that included excessive leverage, speculators run amuck in the market, and the collapse of storied banking houses seems like the perfect fodder for prognostication. Though the causes of the 1907 panic were many from a contraction of international lending to the general recession that was already underway in the United States it took only one reckless act of lending to trigger a crisis of confidence. When a number of banks financed an ill fated attempt to corner the market in United Copper Company stock the dominoes began to fall. Much like sub prime guilt by association gripped the streets as classic bank runs depleted the already strained capital positions. Events culminated on the 21^st and 22^nd of October, 1907 with the fall of the Knickerbocker Trust Company after the loss of its third party clearing house (National Bank of Commerce) and a massive run the next day. Only after the intervention of that day's lender of last resort JP Morgan and his captive banker's alliance was the closure of the NYSE averted. Events were further calmed as Morgan (covertly) purchased $30 million of New York City debt to prevent the cities bankruptcy. By November the near failure of major industrial concern Tennessee Coal, Iron & Railroad Company had been averted through an exemption to the Sherman Anti-Trust act to clear the way for an acquisition by US Steel helping to prevent a second round of bank failures. As 1907 came to a close, with a presidential election (victory to Taft) in the books the financial crisis softened as confidence returned to the banking system.

A wise man once said "History doesn't repeat itself – at best it sometimes rhymes" (Mark Twain). So, a crisis in confidence from the earliest part of the 20^th century may serve as the best rhyme for our current crisis of confidence.

Kevin Hansen

Link to this week's Master Resource Report 2009-01-02

Disclaimer

This publication is dedicated to the education of readers and is an information service only. While the editor is licensed to offer investments and investment advice, the information provided herein is not to be construed as an offer to buy or sell securities of any kind, is the opinion of the author and not endorsed by KMS Financial Services, Inc. It is possible at this or some subsequent date, the editor and/or affiliated parties may own, buy or sell securities discussed in this newsletter, or based upon information provided in the newsletter, or contrary to information provided in this newsletter. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. We make every effort to provide timely information, but cannot guarantee specific delivery times due to factors beyond our control.