1.
Heat that huge deposit up with microwaves and say goodbye to OPEC forever! There’s a rumor that the largest cache of crude oil yet discovered in North America sits in Montana and the Dakotas, waiting to be tapped
2.
They move millions of barrels of crude oil from formations
3.
4 billion in stolen vehicles, crude oil, weapons, and
4.
He painted the outside boards with crude oil to keep them from decaying
5.
The smell of crude oil and gunpowder filled the air
6.
They took around three weeks to confirm that the oil field was vast and with crude oil prices at around 60 US Dollars a barrel we were rich men
7.
It was carrying over twenty-two million gallons of crude oil number 4, one of the most toxic fuel oils around
8.
While owned by a Japanese shipping company, that tanker was nowhere near the conflict zone and was transporting Saudi crude oil bought by an American company
9.
But, the first step in plastic shopping bag production is pumping crude oil, which requires production of wells and drilling equipment, consuming a considerable amount of
10.
And recent escalation of crude oil prices is a telling point
11.
The British would lose all their sources of crude oil and their ships going and coming from India would then be forced to take the long route around Africa, exposing them to German submarine attacks all along the way
12.
The fall came mostly as a result of the dramatic drop in oil prices in 1986, when the price of crude oil roughly halved
13.
In January 1993, 84,500 tons of crude oil spilled off of the coast of northern Scotland's Shetland Islands after a Liberian-Dr
14.
to load crude oil, they would not let him have it
15.
Thirty million gallons of crude oil dumped into pristine waters
16.
He banked again and Samantha was staring straight down at the slurry, which, from a thousand feet, appeared to have the texture of crude oil
17.
During the big move in crude oil prices from $40 in 2004 to $140 in 2008, the pied piper of peak oil played a very seductive tune
18.
Peak oil advocates asserted that world production of crude oil was bound to start an inevitable decline for purely geological reasons early in the twenty-first century
19.
The obvious conclusion was that crude oil prices had nowhere to go but up
20.
Other theories competing with peak oil reinforced expectations of a steady upward march in crude oil prices
21.
Here were three pied pipers that enabled the bullish crude oil crowd to grow to enormous size by mid-2008
22.
Just so you won’t think that the tabulation method I have illustrated for the stock market averages can’t be applied elsewhere, let’s take a look at a completely different market, that for crude oil
23.
In July 2008 crude oil sold at $147 per barrel
24.
Recall that believers in the peak oil theme assert that worldwide production of crude oil soon will or already has reached the highest level it will ever attain, and supplies of petroleum will soon start contracting
25.
The implication is that crude oil prices have nowhere to go but up
26.
In eight years from 1973 to 1981 crude oil rose 710 percent in inflation-adjusted terms
27.
In 10 years from 1998 to 2008 crude oil advanced 910 percent in inflation-adjusted terms
28.
The prognosis is that crude oil is about to begin a drop in its inflation-adjusted price that may well last 17 years
29.
For future reference, note that the price of crude oil is currently $143 per barrel
30.
In October 1973 the first Arab oil embargo occurred, and by 1974 the price of crude oil had increased fourfold to $13 per barrel
31.
A second though less pronounced advance in commodity prices occurred during 1979-1980 and was associated with the second oil crisis, which saw the per-barrel price of crude oil rise from $13 to $39
32.
Over the past three or four years the crude oil market has attracted world-wide attention
33.
It is often possible to take advantage of market crowds that form in bonds, in commodity markets (crude oil, gold, silver, soybeans, etc
34.
But perhaps the biggest single story was the spectacular rise in crude oil prices, from $99 on March 4 to $147 on July 15
35.
This 50 percent increase in crude oil prices was accompanied by a sharp increase on gasoline prices during the summer driving season in the United States
36.
dollars, bonds, gold, crude oil, cocoa, and wheat would normally expect that some pieces of that portfolio are uncorrelated and some are usually negatively correlated
37.
Many traders made quick and easy profits in the dot-com bubble in the late 1990s, as did those who began their trading adventures during the 2007 to 2008 financial crisis and crude oil bubble
38.
) Abdel-Aziz Al-Saud, Saudi Arabia’s first monarch, consolidated and created an entire nation through the control of crude oil and natural gas riches
39.
Coffee: Coffee is the second most widely produced commodity in the world, in terms of physical volume, behind only crude oil
40.
While I was writing Commodities For Dummies, 1st Edition the prices of certain commodities, such as crude oil, natural gas, and gold, were in an upward trend line that seemed endless
41.
Mirrors the movements of the WTI crude oil on the NYMEX
42.
Contracts such as the crude oil futures are rolled monthly because they expire every month
43.
For example, the WTI crude oil contract is traded on both the NYMEX and the ICE
44.
The Chicago Board of Trade (CBOT) specialized in soft commodities such as wheat, corn, and soybeans, and the New York Mercantile Exchange (NYMEX) had offerings in energy and metals, including crude oil, natural gas, gold, and platinum
45.
For example, the CME crude oil contract is standardized because it represents a specific grade of crude (West Texas Intermediate) and a specific size (1,000 barrels)
46.
Therefore, you can expect all CME crude contracts to represent 1,000 barrels of West Texas Intermediate crude oil
47.
In other words, the contract you purchase won’t be for 1,000 barrels of Nigerian Bonny Light, another grade of crude oil
48.
The CME, for instance, now offers the miNY™ Light Sweet Crude Oil contract, which represents 500 barrels of oil and is half the price of its traditional crude oil contract
49.
I include an example of the CME crude oil contract in contango in Table 9-2
50.
However, in 1993, long-term crude oil prices started increasing, and MG was caught short with these contracts
51.
It’s a Crude, Crude World: Investing in Crude Oil
52.
The Arab Oil Embargo of 1973 underscored the importance of crude oil to the global economy
53.
During that year, the Arab members of the Organization of Petroleum Exporting Countries (OPEC) placed an embargo on crude oil shipments to Western countries
54.
Within a matter of weeks, the price of crude oil skyrocketed by 400 percent, and a number of industrialized nations were thrown into recessions, experiencing high inflation and high unemployment for a number of years thereafter
55.
The oil price shocks of the 1970s and their debilitating effects on the global economy underscored crude oil’s indispensability
56.
7 billion barrels of conventional crude oil, which is crude that’s easily recoverable and accounted for
57.
In addition to conventional crude, Canada is rich in unconventional crude oil located in oil sands
58.
Table 10-2 lays out the top ten producers of crude oil
59.
The futures markets are particularly sensitive to daily crude oil production numbers, and any event that takes crude off the market can have a sudden impact on crude futures contracts
60.
Thus, your stock portfolio holdings may be at risk because of daily crude oil production disruptions
61.
The United States tops the list of oil consumers and has been the single largest consumer of crude oil for the last 25 years
62.
Although a lot of folks pay attention to the demand increase from China and India, most of the demand for crude oil (and the resulting price pressures) still comes from the United States
63.
I list the top ten consumers of crude oil in the world in Table 10-3
64.
The United States and China are currently the biggest consumers of crude oil in the world, and this trend will continue throughout the 21st century, with global consumption expected to increase to 120 million barrels a day by 2025
65.
This steady increase in global demand for crude oil is a good reason to be bullish on oil prices
66.
A barrel holds 42 gallons of crude oil or crude oil equivalents
67.
Sulfur content is another key determinant of crude oil quality
68.
Sulfur is a corrosive material that decreases the purity of a crude oil
69.
Therefore, a crude oil with high sulfur content, which is known as sour, is much less desirable than a crude oil with low sulfur content, known as sweet crude
70.
The first school argues that the world has already reached peak production and that demand is going to quickly suck out what’s remaining of crude oil in the world
71.
The other side argues that the world still has abundant crude oil supplies and that, through technological developments and other means, crude oil that wasn’t previously extractable will be brought to market
72.
First, crude oil is a finite resource and, by definition, is available only in limited quantities
73.
The light, sweet crude oil that refiners prefer because of its high products yield (discussed in the section “Going Up the Crude Chain” and in Chapter 13) is running low
74.
As you can see, you can choose from a wide variety of crude oil products as investments
75.
If you’re interested in investing in a specific country, you need to find out what kind of crude oil it produces
76.
Ideally, you want a crude oil with low sulfur content and a high API number as a density benchmark
77.
These companies not only process crude oil into different products, but they also have vast petrochemicals businesses, as well as growing projects that involve natural gas and, increasingly, alternative energy sources
78.
Another great way to capitalize on oil profits is to invest in an emerging market fund that invests in countries that both sit on large deposits of crude oil and have the infrastructure in place to export crude oil
79.
Similar to crude oil (see Chapter 10) and coal (see Chapter 13), natural gas is a nonrenewable fossil fuel found in large deposits within the earth
80.
As a matter of fact, natural gas is sometimes found not too far away from crude oil deposits
81.
Crude oil is the liquid fossil fuel, coal is the solid one, and natural gas is the gaseous fossil fuel
82.
The gasoline your car consumes is a product of crude oil, whereas natural gas is an entirely different member of the fossil fuel family, used primarily for heating, cooling, and cooking purposes
83.
Natural gas may not get the same kind of attention as crude oil, but it still makes for a great investment!
84.
Whereas crude oil is measured in barrels (each barrel contains 42 gallons of oil), natural gas is measured in cubic feet
85.
Crude oil alone was responsible for almost 40 percent of global energy use
86.
Refinery production: Actual production of crude oil products, such as gasoline and heating oil
87.
Its refineries transform crude oil into gasoline that’s distributed through a network of about 500 retail outlets in the western United States
88.
One of the most common questions I get asked about the oil-shipping industry is the following: What’s the relationship between the price of crude oil and oil tanker profit margins? As with many good questions, this one has no straight answer
89.
On the demand side is how much crude oil and products need to be shipped from point A to point B
90.
On the demand side of the equation, demand for crude oil and products worldwide remains robust
91.
To help you with this examination, I list some of the types of vessels used in the global crude oil-shipping industry:
92.
vessels are mainly engaged in transporting crude oil from Alaska to the continental United States, and products from the Gulf of Mexico to the East Coast
93.
If you’re interested in the domestic crude oil transportation market, take the plunge with OSG
94.
Coffee, which originated in Arabia sometime in the 15th century, is today the second most widely traded commodity in terms of physical volume — behind only crude oil
95.
It’s not a widely followed area of the commodities markets — unlike crude oil, for example, you’re not likely to see feeder cattle prices quoted on the nightly news — but this doesn’t mean that you can ignore this area of the markets
96.
They include a summary of weekly supply estimates, crude oil supply, and disposition rates (consumer consumption), as well as production, refinery utilization, and any movement in stock changes
97.
The EIA petroleum inventory reports may not get wide coverage in the press, but they have a direct impact on the price of crude oil and other energy products
98.
The higher the GDP growth, the more likely a country is to spend more money on purchasing crude oil, natural gas, and other natural resources
99.
These two countries are also the biggest purchasers of commodities such as crude oil and steel
100.
The Reuters/Jefferies CRB Index tracks 19 commodities, everything from crude oil and silver to corn and nickel
