In this week's report:

Draft IEA report cuts future world oil production estimate by 10 million b/d.

Would cheap oil make Peak Oil worse?

Geothermal energy helps improve oil fields.

"Oct. 31 (Bloomberg) – "Abdullah Hajeri led a march on the Emir's palace in Kuwait this week, demanding the oil-rich nation's ruler stop stocks from plunging." Wow, if it were only that easy. Or how about this idea; "Dubai's plans, including the Disneyland-style ``Dubailand'' that will be three times the size of Manhattan, are predicated on doubling the number of tourists annually to reach 15 million visitors by 2015." They must know something about future jet fuel prices because that is a lot of A380 flights to Dubai.

Federal Highway Trust Fund and Peak Oil; will revenues dry up?

"State road officials from Charleston to California are breathing a little easier, as Congress seems poised to bail out the bankrupt federal highway trust fund. The fund went bust this month because federal gas tax revenues failed to meet projections by about $8 billion." This is not new but it clearly illustrates that the impact of Peak Oil should be an integral part of all government planning. By the way have either of our Presidential candidates mentioned this little item?

http://www.whsv.com/westvirginiaap/headlines/28241299.html

This is not good news from the World's number two oil producer.

Oct. 29 (Bloomberg) – "Russian oil output may fall 1.5 percent next year as the country struggles with aging fields, OAO Lukoil Deputy Chief Executive Officer Leonid Fedun told a conference in Moscow today." Peak Oil will make it harder for all producers, even those with large reserves remaining.

http://www.bloomberg.com/apps/news?pid=20601072&sid=aZKbk9.R_Mps&refer=energy

Link to this week's Master Resource Report 2008-10-31

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:

Cantarell continues to fall hard.

Natural gas and biofuels – not a good mix.

Has anyone noticed gasoline demand actually rose?

"Lower oil prices will mean tar sands have a problem, cost!!"

Reportonbusiness.com (Oct. 15, 2008) "The costs of mining and upgrading the resource have skyrocketed, and the break-even point for new projects is close to $85 (WTI) a barrel, an increase of $20 from just a year ago." This is just one further example of why the world will not have oil at these prices for long. Unless of course we face decline use from this time on which seems unlikely.

The credit crunch is pulling the drill bits out of the ground.

This is not good news.

VIENNA -(Dow Jones)- "The global banking crisis will hurt new oil development projects and is already forcing many companies to drop oil projects, OPEC President Chakib Khelil said Thursday." If Opec and non-Opec producers stop exploration and development of new wells a supply problem will follow.

Maybe Mexico's government is beginning to understand the problem.

Oct. 23 (Bloomberg) – "Mexico's Senate agreed to allow state oil company Petroleos Mexicanos to hire private companies to explore and drill for oil, casting its vote as riot police dealt with protesters blocking streets outside." This still may prove to be too little, way too late. Mexico's oil production is now back down to levels not seen since 1995.

Link to this week's Master Resource Report 2008-10-24

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:

Cheap oil is not good news.

Mexico & Pemex there is more trouble than just oil.

Have humans ever really replaced a primary energy source?

A couple of good videos on energy.

"Incentives luring buyers back to pickups, SUVs"

msnbc (Oct. 15, 2008) "Auto sales hit the skids in September, sinking to their lowest level in more than 15 years, as the faltering economy and credit crunch combined to squeeze the business. But amid the carnage, sales of large pickup trucks and sport utility vehicles held their own, according to Edmunds.com." This either shows that the American consumer was not really that hurt by gasoline prices around $3 to $4 per gallon OR the American consumer is STUPID.

http://www.msnbc.msn.com/id/26642867/

"There is much more to the price of fuel than the pump price."

Executive Summary, The Military Cost of Securing Energy (Oct., 2008) "Despite the rise in gas prices, what Americans pay at the pump does not reflect the true costs of filling up their cars and trucks. Each year, the U.S. military commits resources to securing access to and safeguarding the transport of oil and other energy supplies. These costs do not show up in the market valuation of gasoline, heating fuel or other end uses, but are paid for instead by American tax dollars." The report indicates that as much as 30% of US military spending is applied to securing energy access.

http://www.nationalpriorities.org/auxiliary/energy_security/full_report.pdf

Link to this week's Master Resource Report 2008-10-17

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:

Wave and Tidal Power

Mexico the slide continues

Climate change and Peak oil, they must work together

The U.S. power grid faces trouble in 2009

"Why the Oil Crisis Will Persist"

Scientific American (Oct. 2008) "According to recent statistics, U.S. motorists have responded to record-high prices at the pump by driving less. Any hope that this cutback will significantly restrain global oil prices is misplaced, however: fundamental factors of supply and demand in the world economy will keep oil costly for years to come." This is an indication that the mainstream media is beginning to get a grip on Peak Oil. Not a complete grip but a beginning. Full text is available online:

http://www.sciam.com/article.cfm?id=why-the-oil-crisis-will-persist

Link to this week's Master Resource Report 2008-10-10

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:

Does Warren Buffett get Peak Oil?

Natural gas supply surge?

This week's report is briefer than usual. To say the least this has been a very busy week. Between catching up from the Peak Oil conference in Sacramento and end of quarter issues my time had to be rationed. In the short run it appears a peaking of money may trump the Peak Oil story. Just remember it won't go away. Delayed possibly but not dismissed from the reality we face.

Link to this week's Master Resource Report 2008-10-03

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.