Oil prices could top $300 per barrel within the next five years, according to one industry expert. -- Matt Simmons

"Demand on the other hand shows absolutely no sign of slowing down because we are now at $100 a barrel, which I still think is a preposterously cheap price. It works out at just $0.15 a cup. A cup of gas will get a car with six passengers in, with the air conditioning on and go two miles. It's a bargain" Matt is a braver man than I predicting price. The truly scary part is that we have a better chance of seeing $300/barrel than every seeing $30 again. There is more on oil prices in this week's report.

http://www.arabianbusiness.com/512436-oil-could-reach-us300-claims-expert?ln=en

Study says clean energy investment near $150 billion in 2007.

(Reuters) - Global investment in clean energy technologies soared 60 percent last year to $148.4 billion (74.4 billion pounds), London-based researchers New Energy Finance said on Thursday." It is worth noting that the report indicated biofuel investing actually fell in 2007. "Within the clean energy sector solar power has seen by far the strongest investment growth over the past four years, the report said, at 254 percent per year since 2004."

http://uk.reuters.com/article/UK_SMALLCAPSRPT/idUKL2892386220080228?sp=true

Mexico's Cantarell oil output slides further.

"(Reuters) - Crude oil output from Mexico's huge but aging Cantarell offshore field fell again to 1.243 million barrels per day in January, the lowest average monthly output level in several years, the energy ministry reported on Tuesday." To make matters even worse with the highest oil prices in history Mexico's national oil company Pemex managed to lose $1.48 billion (yes billion) in 2007. Is anyone in Mexico City or Washington DC nervous yet?

http://uk.reuters.com/article/oilRpt/idUKN2638112220080226

The answer to my question about Mexico City at least came this morning. According to Upstreamonline "Mexico's key opposition party, the Institutional Revolutionary Party (PRI), is unlikely to back any oil sector reform proposal that would let private companies form profit-sharing alliances with the state-run Pemex." The crisis isn't bad enough yet to panic so why try to deal with it. Again we see no understanding of the implications of Peak Oil.

Link to this week's Master Resource Report (PDF) 2008-02-29

Find the answer to this question in this week's report.

How much coal is required to run a 100-watt light bulb 24 hours a day for a year?

How much CO₂  is produced?

Oil at $100 May Look `Cheap' Within Five Years

"(Bloomberg) -- Crude oil prices of $100 may look "cheap" within five years if OPEC production fails to keep pace with global demand growth, according to Alfa Bank. "We may hit peak oil in the course of the next three, four or five years, in which case $100 oil will look somewhat quaint,'' Alfa Bank's Moscow-based Head of Research Ronald Smith said in an interview with Bloomberg television." I think his five year time frame may be too long. I do like his use of the word quaint.

http://www.bloomberg.com/apps/news?pid=20601207&sid=aoz6VDOFWe60&refer=energy

Jakarta to seize gas field in Exxon dispute.

"(Financial Times) -- Indonesia on Tuesday said it would seize Asia's largest undeveloped gas block from ExxonMobil and ask Pertamina, the state-owned energy group, to prepare a feasibility study to take over the field." The fact that "Resource Nationalism" is spreading is not news anymore. The next phase, "Resource Withholding" has not yet sunk into the investment or commodity markets. One the resource is controlled solely by national company the move to "Resource Withholding" is an easy step. Also remember is will involve far more than energy resources.

http://www.ft.com/cms/s/0/79091b66-df3e-11dc-91d4-0000779fd2ac.html

The Peak Oil Crisis: Connecting the dots.

"(Falls Church News-Press) Earlier this week oil closed above $100 a barrel for the first time. To make matters worse, wholesale gasoline and heating oil jumped 11 cents a gallon in a single day to their all-time highs." If you have not read Tom Whipple's work for the Falls Church News-Press or ASPO-USA take the time to check this out,

http://www.fcnp.com/index.php?option=com_content&task=view&id=2583&Itemid=35

Link to this week's Master Resource Report (PDF) 2008-02-22

Vietnam to Slash 2008 Coal Exports, May Phase Out Shipments

"(Bloomberg) -- Vietnam, China's largest coal supplier, plans to reduce exports 32 percent this year and gradually eliminate the sales to meet rising domestic demand, a government official said." In the April 6, 2007 issue of this report I indicated that Vietnam would be reducing its exports of coal. Now that there is a developing crisis in the Pacific Basin coal supply it is coming to pass. This brings together two key concepts I cover nearly every week; net exports and resource withholding. Stay tuned it is going to get interesting.

Link to source: http://www.bloomberg.com/apps/news?pid=20601087&sid=agcDPPksNI6U&refer=home

14% annual decline rate for Mexico's largest field.

"According to Sener, the 2007-16 Crude Oil Market Outlook prepared by the Energy Information System of the Energy Secretariat, in any scenario—high or low—Cantarell's production will average 917,000-921,000 b/d during 2006-16, with an average annual decline of 14.1%."

Link to source: http://www.ogj.com/display_article/319499/7/ONART/none/DriPr/1/Mexico-oil-production-decline-to-increase-in-2010/site_license.cfm?sl=petrobras

This is why I think ASPO will win the $100,000 bet with CERA, assuming CERA accepts the challenge.

From the OilDrum.com "Our own government data, in an EIA release earlier this week, announced downward revisions in Crude + Condensate oil production for November 2007, confirming (for now) that May 2005 is still the standing peak for oil production. World production through the first 11 months of 2007 averaged 73,223,000 bpd which is 594,000 bpd below the average for 2005. November 2007 production is still 582,000 bp/d below the record month of May 2005."

Link to Source: http://www.theoildrum.com/node/3627#more

Link to this week's Master Resource Report (PDF) 2008-02-15

Wager Challenges CERA Oil Supply Prediction

Group bets $100,000 against CERA supply forecast

"CERA's claims of 'plentiful energy resources' are misguided, overly optimistic and out of touch with recent warnings from oil industry CEOs," Udall said. "CERA projections have been wrong so often that policy makers should think twice about embracing their data," added Bob Kanner, CEO of Cleveland-based PubCo Corporation, who has wide-ranging investments in the oil and gas industry. "I'm participating in this bet to illustrate the need for greater truth and clarity in the prediction of oil and gas supplies. We're not just betting our money, we're betting our nation's future."

Full text of wager is on page 5 of the attached Master Resource Report.

http://www.aspo-usa.com/index.php?option=com_content&task=view&id=312&Itemid=91

Biofuels Hold Potential for Greater Levels of CO₂ – Highly recommend reading!

"Together the two studies offer sweeping conclusions: It does not matter if it is rain forest or scrubland that is cleared, the greenhouse gas contribution is significant. More important, they discovered that, taken globally, the production of almost all biofuels resulted, directly or indirectly, intentionally or not, in new lands being cleared, either for food or fuel."

If you don't have time to read the article there is a six minute audio worth listening to.

http://www.nytimes.com/2008/02/08/science/earth/08wbiofuels.html?_r=1&ref=business&oref=slogin

Central Asia is going to heat up in the future.

"ASTANA, Kazakhstan (Dow Jones)--The Kazakh state could seize oil fields and mineral deposits from private investors, Prime Minister Karim Masimov said Thursday"

Scale will not allow this to happen! (This week's report tells why)

"The U.S. Senate is trying to jumpstart action on that front. In October, Sen. Norm Coleman and several co-sponsors introduced the Carbon Dioxide Pipeline Study Act "a prod to get five federal agencies to clear away technical and regulatory hurdles to the construction of a huge national pipeline."

http://blogs.wsj.com/environmentalcapital/2008/02/05/reality-check-please-clean-coals-pipeline-problem/

Text of Bill http://www.govtrack.us/congress/billtext.xpd?bill=s110-2144

Link to this week's Master Resource Report (PDF) 2008-02-08