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For the first time in close to a century, mankind may be about to give serious attention to a technology that has the potential to be a true game-changer in transportation.
Nevada is booming as new lithium companies rush in to stake out targets and massive business development gets underway, from Tesla to Amazon and Apple. As the state's southwest corner fills up with new lithium players, Tesla gears up for its battery gigafactory and the world's largest data center sets up shop, Nevada is poised for one of the greatest economic revival stories of the century.
In an exclusive interview with Oilprice.com, Brian Findlay, President and CEO of Dajin Resources Corp., discusses:
We are a little more than a month away from OPEC's next meeting in Vienna on December 4, 2015.
OPEC altered the course of the oil markets last year when it decided to cast aside its traditional role of maintaining balance through production cuts. Instead, it pursued a strategy of fighting for market share, contributing to an immediate rout in oil prices. WTI and Brent then went on to dive below $50 in the weeks following OPEC's decision.
October has been billed as a pivotal month in which indebted shale companies would see their credit lines cut, precipitating a faster consolidation in the industry that would sow the seeds of a rebound.
While other commodities are floundering or completely collapsing in this market, lithium—the critical mineral in the emerging battery gigafactory war—is poised to explode, and going forward Nevada is emerging as the front line in this pending American lithium boom.
On September 10 the EIA reported a production decline in the Lower 48—essentially shale production—of 208,000 BOPD. That is a staggeringly enormous number, approximately 10 percent of the estimated global over-supply. Additionally, it was a week-over-week number, which makes it all the more impressive. Yet it received little attention through the week. Rather, Goldman Sachs was grabbing all the headlines with its $20 call on oil.
The party is over for tight oil. Despite brash statements by U.S. producers and misleading analysis by Raymond James, low oil prices are killing tight oil companies. Reports this week from IEA and EIA paint a bleak picture for oil prices as the world production surplus continues. EIA said that U.S. production will fall by 1 million barrels per day over the next year and that, "expected crude oil production declines from May 2015 through mid-2016 are largely attributable to unattractive economic returns."
As traders, investors and pundits, we all like to think that what we do is akin to a science. We believe that by working harder and being smarter we can give ourselves an edge, that enough research will reveal to us the next move, either a long-term trend or an intraday blip on a chart, and that we can profit from that knowledge. Usually, especially over longer time spans, we are correct in that assumption. Sometimes, however, no amount of fundamental or technical analysis will help.
After decades of exhaustive attempts to overcome the dirty reputation of oil sands, we finally have an environmentally-friendly and low cost method to tap into these vast resources in the state of Utah—good news both for Mother Nature and all oil and gas investors.
"If you are the world's leading energy economy, you produce energy, that's what you do."
"A government can stay irrational longer than it can stay solvent."
"Even in the short term, you're dead, if you commit suicide."
OPEC next gathers December 4 in Vienna, just over a year since Saudi Oil Minister Ali Al-Naimi announced at the previous OPEC winter meeting the Saudi decision to let the oil market determine oil prices rather than to continue Saudi Arabia's role of guarantor of $100+/bbl oil.
Recently, I wrote on these pages that a remarkable turnaround was taking place in the President's fortunes. It's an impressive display of rising from the depths of falling popularity last fall, and it is starting to be felt in many areas, with major impacts on the future of energy.
At his lowest point, the U.S. President was widely regarded as a lame duck, shedding influence and power, and on a downhill slide.