'Oil & Gas Trends and News'
Apr 14, 2009 (FinancialWire via COMTEX) --
Companies: Deep Well Oil and Gas (DWOG), Kodiak Energy Inc (KDKN), Kodiak Energy Inc (KDKNE), Sun Cal Energy Inc (SCEY), Tamm Oil and Gas Corp (TAMO)
Exclusive Market Commentary From Zurich's SISM Research
April 14, 2009 (FinancialWire) -- With a solid track record covering the oil & gas industry, including extensive, ongoing analytics on Tamm Oil and Gas Corp. (OTCBB: TAMO), Kodiak Energy Inc. (OTCBB: KDKN), Sun Cal Energy Inc. (OTCBB SCEY) and Deep Well Oil & Gas (OTC: DWOG), Zurich-based SISM Research's senior analyst, Ernest C. Schlotter, now has launched the first in his series of "Oil & Gas Trends and News" newsletters.
The following is an abbreviated portion of the entire Oil & Gas Trends and News newsletter. A complete, complimentary copy of the newsletter is available for download via the Investrend Research's Special Commentary and Analysis (http://www.investrend.com/Admin/Topics/Articles/Resources/171_1239720836.pdf).
From the newsletter:
"At the turn of 2007/2008, oil was at the cusp of $100/barrel -- a price that was considered a kind of mythical barrier due to its three-digit numerology. Well, it took just a day or two into 2008 to broach that level, and by July, oil was approaching $147/barrel -- an increase of 50% in 6 months, and fully 6 times the levels that prevailed just five years previously in 2003.
"In just six months since the summer of 2008, oil prices have collapsed, falling by about 75%, to below $33/barrel. This market collapse was caused by slumping economic growth and because the demand for energy by the world's biggest oil consumers, the U.S. and China, sank significantly. However, when the recessionary tide finally recedes, all of the factors that drove oil to its record high last summer will once again be exposed, and crude will again soar to new record highs.
"SHORT-TERM - If current oil prices remain low, future supply growth will be impossible, leading to much higher prices.
The recent collapse in oil prices is very dangerous, as it is causing international oil and gas companies to underinvest in new production, which in turn threatens to spark a new spike in crude prices once the downturn ends. If prices stay low for a long time, future supply growth will be impossible, leading to another price run-up in the future.
"In our view, a price of $50/barrel supports an investment that helps sustain economic growth by supporting long-term energy investments. Baker Hughes just announced that the number of drilling rigs actively exploring for or developing oil or natural gas across the globe dropped by 440 to 2,313 in March compared to 2,753 working rigs in February. US rig count for March fell by 215 to 1,105, according Baker Hughes." (...see the complete commentary via http://www.investrend.com/Admin/Topics/Articles/Resources/171_1239720836.pdf).
<><><><><><>
SISM is a standards-based market and equity analysis firm that focuses mainly on mid and small cap equities. The firm provides exclusive, customized research and analysis solutions directly for public companies, activist investors and investment banks. A special arrangement between Investrend Communications and SISM provides for preferred introductions and discounted enrollments into SISM' programs. For more information write to research@investrend.com with "SISM" in the subject line.
<><><><><><>
FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.
Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).
http://www.financialwire.net
Copyright (C) 2009 Investrend. All rights reserved
News Provided by COMTEX
Companies: Deep Well Oil and Gas (DWOG), Kodiak Energy Inc (KDKN), Kodiak Energy Inc (KDKNE), Sun Cal Energy Inc (SCEY), Tamm Oil and Gas Corp (TAMO)
Related terms: activist, china, communications, economic growth, energy, equity, gasoline, investment, market, natural gas, oil, oil and gas, otc, prices, research, small cap, standards, web
