In this week's report: (click this link to access an online copy of the attached PDF)

Jet fuel and distillate fuel demand trends. (page 1 )

Is $80 oil a problem for the economy? (page 3 )

Ten years of US gasoline and distillate fuel consumption. (page 4 )

Chinese investing in wind power in Texas???

Dallas Morning News (Oct. 29^th) – "A Chinese-American joint venture has agreed to build the next massive wind farm on the plains of West Texas." Texas would never let China own their oil wells, but the wind, no problem? I wonder why they couldn't get T. Boone in on this one.

Will the Saudi's intervene to keep oil prices down?

Khaleej Times [Reuters] (Oct. 29^th) – "Saudi Arabia might seek to brake any new oil price spike, mainly to protect a fragile global economy and prolong its own role as the world's top oil producer — and if that hurts regional rival Iran, it will shed no tears." The Saudi Arabian government does not want the world economy to slip backwards into recession when it may just be moving out of one. The spector of demand falling and prices slipping back to the $30/barrel levels of last December will keep their minds focused.

The question is how long can they provide that supply when global demand returns to the levels of 2007-08?

Jeff Rubin clearly thinks not for long and said so on James Cramer's show Thursday. He thinks oil will scale triple digit levels within 12 months and put an end to the recovery. If you watch this video it is like all "Mad Money" clips, only with adult supervision and definitely no children should be present. (Cramer thinks we have 200 years worth of natural gas, enough said) Note: I only knew about this interview thanks to a friend, I am proud to say I normally avoid Mr. Cramer.

North Dakota passes Louisiana in oil production.

Associated Press (Oct. 28^th) – "The agency's Energy Information Administration said North Dakota produced 6.38 million barrels of crude in May, edging Louisiana, which had 6.34 million barrels for the month. Oklahoma was ranked fifth, at 5.7 million barrels for that month, according to the most recent figures." Don't get too excited though, North Dakota's total monthly production would only meet about one-third of a single day's demand for oil in the U.S. In addition number five ranked Oklahoma is now producing less oil than in 1913 (page 2). Never forget SCALE when reading oil production statistics.

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