What Will $150 Oil Bring?
From: Riggs Eckelberry
Los Angeles, July 5, 2011
Good morning… And if you’re in the USA, I hope you saw some great fireworks last night!
Barron’s: Get Ready for $150 Oil?
And we thought oil prices were easing. But Barron’s, the respected insider weekly, claims it’s all about to start up again:
…Following some further easing over the summer, the second leg of the long-term bull market in petroleum–the first occurred in 2007-08–probably will begin this fall…
As oil producers’ spare capacity gradually declines to worrisome levels, the average monthly price could reach a record $150 per barrel by next spring, with spikes to $165 or $170. With this, $4.50-a-gallon gasoline will become the norm.
According to the article, this is because demand from developing countries continues to grow faster than the oil supply. And that’s not going to change.
What High Oil Prices Mean
They may be bad for the economy (Barron’s claims we will survive), but high oil prices mean everything to our industry.
Algae producers are already predicting they can get the price of algae-based crude oil down to $60-80 per barrel.
That means advanced biofuels can be very, very profitable, especially since we can start with the more profitable oil products like chemicals.
No wonder there is a boom in IPOs — like Gevo, Solazyme and KiOR.
Our Own “IPO”
Now we’re already public, but there’s no question that our up-listing to a senior U.S. exchange will be a major event, as we will finally qualify for institutional coverage —and investment.
This is a good thing, because the algae market is blossoming beyond anyone’s dreams, and it needs critical technology like ours — right here, right now.
The Latest “Algae Business” Column
Just out, my July column in Algae Industry Magazine. Check it out here.
@tokyomike55 calls it an “Awesome summary of how and why algae works as the best solution for #CO2 control and reduction.” Thank you Mike…
Here’s to a great week!
Riggs and team
President & CEO
OriginOil, Inc. (OOIL)
OriginOil’s Presentation at the 3rd Algae World Summit: (download)
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