In this week's report:

Wind power report.

"Clean Coal"???.

Brazil's oil production will be increasing.

The BBC broadcast on Peak Oil "A Farm for the Future".

This BBC documentary is worth every minute it takes to watch the 49 minutes video. It hits at the biggest risk society faces from Peak Oil & Gas - Food. The link below will take you to The Oil Drum page where you can view it and also experience the community of folks who contribute to the discussion there. This is a top notch production by the BBC; I highly recommend taking the time to watch it.

http://www.theoildrum.com/node/5241#more

Alternative viewing at Google: http://video.google.co.uk/videoplay?docid=4152340418943461860&hl=en

Jim Kunstler doesn't write to make us feel good, rather to make us think.

"Everything that we're doing right now is engineered to avoid reality, to sustain the unsustainable, to recover the unrecoverable, when the mandate of reality compels us to face our losses in order to move on to the next chapter of a collective American life. The next chapter would be a society that runs on a much more local and modest scale, centered on essential activities like growing food, requiring harder physical work, and focused attention -- in other words, the opposite of a society lost in abstractions, long-range daisy chains of off-loaded responsibility, and incessant pleasure-seeking." Just think of how much we endure to keep from changing even when the change is inevitable.

http://www.kunstler.com/mags_diary25.html

The Peak Oil Crisis: Pondering the Near Future.

"What appears to be lacking in the current economic debate is a coherent plan of where the U.S. and indeed the world's civilizations need to go. Unfortunately the only stated, and politically feasible, goal at the minute seems to be a return to "economic growth," an objective which is clearly unrealizable in the midst of the current but as yet unrecognized transition to non-fossil fuel energy." I would add water to this list and consider it even more immediate than global warming. Of course global warming will exacerbate the water problem but problems with water are already unfolding in many parts of the world in real time.

http://www.fcnp.com/index.php?option=com_content&view=article&id=4283:the-peak-oil-crisis-pondering-the-near-future&catid=17:national-commentary&Itemid=79

Link to this week's Master Resource Report 2009-03-27

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:

U.S. oil consumption and the rest of the world's production.

Wow, Mexico replaced more than 100% of production, well not quite.

Videos – Matt Simmons, IEA and a cool electric car.

While Congress worries about maintaining business as usual; those who understand Peak Oil are planning for when they can't.

Richard Heinberg – "A process for designing the energy system to meet society's future needs must start by recognizing the practical limits and potentials of the available energy sources. Since primary energy sources will be the most crucial ones for meeting those needs, it is important to identify those first, with the understanding that secondary sources will also play their roles, along with energy carriers (forms of energy that make energy from primary sources more readily useful—as electricity makes the energy from coal useful in millions of homes)."

http://www.richardheinberg.com/sites/default/files/museLetter_203_march_2009.pdf

An interesting way to look at the WTI NYMEX oil contract's pricing impact.

The Times Online - "It sounds absurd, that a tiny market, buffeted by local news, should become a proxy for values across a nation, not to mention the world, but that is roughly what has happened in the global oil market." Oil prices have not gone down to the $20 per barrel that was being predicted by the experts just a few weeks ago. In fact they have moved over 50% higher than the low to over $50. The article in the Times presents a different way of viewing what has been going on with the pricing of the WTI. For investors who understand Peak Oil focusing on short-term price swings is a risk to long-term success. Understanding the WTI should help avoid getting trapped in the WTI vortex.

http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article5927188.ece

Link to this week's Master Resource Report 2009-03-20

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:

Further thoughts on the U.S. coal reserves.

Where does most of the electric power generated in the U.S. go?

What do Mexico and Pakistan have in common?

"Clean Coal" they still don't get it.

(Bloomberg) – "A clean-coal power plant backed by Peabody Energy Corp. and American Electric Power Co. and rejected by Republican President George W. Bush may be revived by the industries' usual political adversaries: Democrats." The plant is intended to capture 90% of the CO₂. This week's report gives some details on why this is a doubtful endeavor to pursue.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOtHPD__eF1I

It is simple, reduce drilling and supply will soon follow.

"SAN ANTONIO, Mar. 10 -- Rapidly declining US natural gas rig counts and prices are setting the stage for a recovery in both sooner rather than later. That was the message today of Gregory A. Dodd, vice-president for natural gas marketing and supply at Devon Energy Corp. in remarks to the 88th Annual Convention of the Gas Processors Association in San Antonio." The decline rates in natural gas are far steeper than in oil resulting in a much quicker supply response on the downside. The question that needs to be examined now is how fast can supply can match demand and not dramatically overshoot once the two meet sometime during the next 12 months?

ASPO-USA Peak Oil News – March 11, 2009

http://www.aspo-usa.org/index.php/category/news/

Link to this week's Master Resource Report 2009-03-13

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:

It is simple; a drop in drilling will result in a drop in supply.

But the U.S. will never run out of coal right?

Is it possible we have achieved Peak Autos & Peak Airplanes?

Would you loan Pemex over $10 billion?

Gasoline consumption is still hanging in there, diesel continues to a lag year ago.

Gasoline consumption year-over year -- four-week avg. down .36% -- one week up 1.5%

EIA data: http://tonto.eia.doe.gov/oog/info/twip/twip_gasoline.html

Distillate consumption year-over-year -- four-week avg. down 7.7% -- one week down 12.9%

EIA data: http://tonto.eia.doe.gov/oog/info/twip/twip_distillate.html#demand

So the decline in demand for petroleum in the U.S. continues to be provided by the industrial & commercial users cutting back. These demand changes illustrate the inelastic nature of gasoline consumption in the U.S. The country is in the deepest recession in 80 years and gasoline demand is running flat to up slightly.

The U.S. and the UK have found a way to bring natural gas prices down.

Just kill the industrial and commercial part of the economy and demand will come crashing down. (Bloomberg) – "U.K. spot natural gas, costing about half as much as long-term European contracts, may fall 42 percent as lower industrial demand pushes more gas onto the open market, analysts said." Of course there is that one negative side effect; massive economic hardship. More on the U.S. natural gas supply in this week's report.

http://www.bloomberg.com/apps/news?pid=20601072&sid=aa6F637JnYuw&refer=energy

Link to this week's Master Resource Report 2009-03-06

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.