Daily Oil Blog

It seems like the coal industry is having another fallacy about the reserves to supplement the fossil demand in our world.Is the 200 year reserve supply figures too optimistic in US?From Richard heinberg report.US coal production has passed its peak since 1998!

Down in China, the coal reserves reports has not been published for more than a decade. And as we speak , world reserve of coal estimate has been down by 60%!Meanwhile coal consumption of the world has not been stopped partly due to higher oil prices, this is not a joke considering coal provide one quarter of the world energy consumption.

Global Coal Peak

Global coal production will peak around 2020 according to the experts ,after oil and gas.China being the largest producer will be peaking around next 5 to 10 years followed by USA and we’re not talking about the best grade coal either.

Total global coal reserves sits at 900plus  billions ton.A little more than half is of high quality energy grade whereas the rest is of lower quality.We’re cleaning up the coal for a higher air quality in a self centred manner whether we like it or not

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The opening year of China this year had not been really pleasant for one the winter blizzard crisis shows the amount of work that the State needed to overcome to restore confidence in the public about the energy mishap.More so since the Asian giant is holding the olympics this year.

The demand for coal in China will raise the price of the black rocks and also her imports from overseas.With more than 80% of her imports coming from ASEAN and Australia, more investors will be putting their money into this coal companies in the next decade.

Coal is basically toxic and bad for the health and environment but the free market unbridled control to maximise profits failed to take into account of how fragile our ecosystem is and with huge populace like China taking in all this energy, one doubts the effects it has on the air quality of her big cities.

Napolean once said when china awakes it will shake the world , let’s hope the shake out of the energy resources that produce carbon will be a mild one.

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Many of you guys know the precious timber resources men used for paper, housing, making fire, etc etc.So you too know the profits coming from a timber market.When one got a parcel of timber land, one not own only the trees but the potential of the land beneath.

It’s double return for while one wait for the trees to harvest, the land value too grow with time. The thing about timber investment is like land is a long term play and one will not probably see returns for the next 10 or 20 years.Given the long time frame, the value of the land may increase more than the returns of the timber harvest.

There are 4 options that you can take part in investing timber directly or indirectly.

Share option

You can buy shares into a timber company whether it publicly or privately but the downside is you cannot own the land .You cannot profit from any land appreciation as timber companies are valued for cash flow not land worth.

Buying Trees

You can buy trees from tree farm.The farm management take care of the planting and sell the trees on your behalf but you don’t own the land.How they know which trees are yours
is a tricky proccess I’m trying to figure out.This is the most simple way of investing in timber but also the riskiest.

Private Forestry Trust

Buying into a forestry trust is the third option.By buying shares into this trust, you get the advantage of professional management and land appreciation.This is a much better deal and more so if you decide to build houses on the land for investement.

DIY timberland

The last option are those with both time and money to develop their own timber plantation. You need the know how of timber growing and management but the payoff
is the greatest in doing yourself or you could tiedup with a reliable partner.

Please make sure that whatever timber investment you decide to engage in it’s a sustainable development.Happy planting!

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Nope I’m not talking about the magician ,I’m talking about the copper market that’s essential to our modern day to day living.Everything from our roof to motor vehicles use copper.Without Copper ,we cannot surf broadband and so end the internet world.It’s use to refine our oil with industrial machines made with copper ironically powered by it too

The best thing about copper is it can be recycled and it’s been serving us for the past 10,000 years!So the coins and cookware you’re using could go back to ancient rome or egypt! A copper pendant discovered in Iraq was dated 8700BC.

Known worldwide copper resources are standing at 5.8 trillion pounds and we’ve just mined about 0.7 trillion of it and nearly all that metal is still in circulation.As we continue to upgrade our technology, the ability to source the recycled copper from premium scrap will go up more than 85% value of new minted ore.In other words , our present recycling of copper can last us , given the population will dive at some point in the future.
Copper will be our best friend for a long time I suspect long after the oil is gone

How I wish fossil energy can be recycled but it’s just a rude awakening we need to come to terms with.Copper is one of the commodities that give us hope that is sustainable.Not only does it’s recycling rate higher than other engineering metal, copper and copper alloys can inhibit the growth of fungi and bacteria. Long Live Copper!

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