Tuesday, February 22, 2005

Read between the lines.

South Korea announces it will diversify it's foreign currency holdings to include Canadian and Australian currencies. = South Korea is aware of peak oil and is putting money in the currencies of countries with large deposits of various natural resources including oil and natural gas. Notice they didn't put it in the Euro, the supposed new alternative to the dollar, because the Euro countries have almost no oil and gas left.

Morgan Stanley upping oil price forecast. = Standard Wall Street self dealing. First, Morgan Stanley made a deal to buy oil forward, now they announce the price of oil might be going higher. "The key reason for these forecast changes is that oil markets are today much tighter than we thought." Yes, that's also the key reason you locked up Anadarko's production, only you're telling us about it after you're already in.

Oil companies having trouble keep reserves up [$]. = Okay, maybe you don't need to read between the lines on this one. There's a little bit of a debate here (should the prices used to determine reserves with economic value be from Dec. 31 only, or an average over the past six months say), but the major point is the major point - oil companies are having more trouble maintaining reserves, let alone increasing them.