Happy Holidays and Best Wishes for the New Year

In this week's report:

U.S. gasoline consumption levels.

Good News for Bicycle Commuters.

Cantarell is down 33% year-to-date.

If the world had reached Peak Oil this year would we know it today?

The answer is no. Since the global economy has slipped into one of the worst recessions in 80 years the demand for petroleum has fallen sharply. Therefore demand would be below the Peak level of production resulting in a decline in price. Since there would be a surplus on the global oil market the lower price would mask the reality of a global Peak.

Today's price of oil is not an indicator of whether future supply will meet future consumption needs. It is a measure of the ability of current supply to meet current demand. When considering Peak Oil for the future focus on the supply data and not on the price of oil. When the alarm bells of price go off it will already be too late.

Link to this week's Master Resource Report 2008-12-26

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 multi billion $$$$ consumer stimulus is already at work.

Dubai dreams one up you will never believe.

Interview with the IEA's chief economist.

The energy-water connection.

James Kunstler makes some blunt and honest comments on our situation.

"A key concept of the economy to come is that size matters -- everything organized at the giant scale will suffer dysfunction and failure. Giant companies, giant governments, giant institutions will all get into trouble." He is right on the mark with this point; globalization is going to come under tremendous pressure in the future. Jim's other remarks on immigration hit right at the looming problem Mexico's crisis will soon present the U.S. national government with.

http://jameshowardkunstler.typepad.com/clusterfuck_nation/2008/12/change-you-wont-believe.html

David Rutledge makes his case on world coal reserves being over stated.

Wired Magazine had an article reporting on David Rutledge's contention that the governments of the world have underestimated their coal reserve. "The record of geological estimates made by governments for their fossil fuel estimates is really horrible," Rutledge said during a press conference at the American Geological Union annual meeting. "And the estimates tend to be quite high. They over-predict future coal production." The world's ignorance about its coal reserves could have serious implications for both energy and climate policy decisions. So just like oil the situation is we don't know.

http://blog.wired.com/wiredscience/2008/12/world-coal-rese.html

Link to this week's Master Resource Report 2008-12-19

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:

CBS News – 60 Minutes video on Saudi Arabia.

Some big "IF's" that will have to work.

Offshore wind.

Will Russia and Opec co-operate on production?

Yes, even more on Mexico's troubles.

"So long, super-cycle"

"But for investors, executives and bankers alike, the commodities boom and bust cycles teach that extrapolating today's events into the future may prove the wrong bet. Ten years ago today, when oil prices bottomed at $9.64 a barrel, the common wisdom was that commodities prices were heading down. Today's forecasts could prove equally fallible." The Financial Times, analysis by Javier Blas

Highly recommended article in the best financial newspaper in the world.

http://www.ft.com/cms/s/0/0add25ce-c65b-11dd-a741-000077b07658.html

The Russian Government Gets Peak Oil!

If you don't think Russia understands Peak Oil consider this quote by Alexander Medvedev, Gazprom's deputy chief executive (Gazprom is the quasi Russian government controlled oil & gas company.)

"If you see the latest report from the International Energy Agency, it is clear that $100 oil will come back quite quickly. It is a question of when, not if."

The Master Resource Report is an easy search on Google

Just enter "The Master Resource Report" followed by the year-month (2008-08) of the report and Google produces the links for that month's reports. It is interesting to note that Microsoft Live Search doesn't do as good a job. Strange considering they are hosting the archive???

Link to this week's Master Resource Report 2008-12-12

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:

Fuel cells and the hydrogen economy?

Seattle goes from tracks to tires and back to tracks.

What the world doesn't know about its oil supply is its biggest risk.

Link to this week's Master Resource Report 2008-12-05

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.