Vangold Resources and Peak Oil
I've done a number of pieces mentioning Vangold in the past on 321gold but they were all in light of their work as a gold exploration junior. Last year, about this time, after some snoring exploration results in New Guinea, President and CEO Dal Brynelsen made a decision to branch off into gas and oil exploration/production in an effort to keep the stock from tanking. His timing couldn't possibly have been any better.
I am a believer in Peak Oil. There is more than enough information available by now that we know it's not just a theory, it's both real and here. While most of America sleeps, it's becoming more obvious every day that not only is demand increasing as a result of an Asian transition from an agrarian society to a consumer society, supply is falling. Resulting in higher and higher prices. I'd go so far as to say that in my oh, so humble opinion, we have already seen the Peak and are into the decline of oil production stage. Price swings will become wilder and wilder with a constant movement higher with each swing.
The twin terror hurricanes hitting the gulf production facilities of both Texas and Louisiana this year have taken not only oil and gas wells off line, but also removed major and key refining capacity for a long period, longer than anyone anticipated. While it's at least possible in theory to remove oil from the strategic reserve, there is no such capacity for natural gas and we can't go begging, hat in hand to the Europeans. Oil is easy to move around, natural gas, not. Any given region has to somehow mix and match supply and demand to attain a balance.
And that balance is in a very dangerous state this year. With so much capacity in the gulf shut-in, a colder than usual winter bodes poorly for American consumers. There is a very real chance we may simply run out of natural gas this winter. And England is in the exact same situation with declining production from the North Sea running headlong into increasing demand.
Energy Guru Matt Simmons has suggested $40 natural gas and $180 oil is POSSIBLE this winter but in any case a disaster is not far away no matter what the temperatures are this year. And if anyone has a clue as to what the energy policy of the United States is, email it to me. No one else I know has any clue as to what our national policy is.
It might be a good time to own energy stocks. We have a number of great juniors exploring for both oil/ng and uranium who advertise on 321energy and now that prices have retreated on a temporary basis, it would be a good time to look them over.
I like Vangold. It has double-header potential, as an energy stock and as a gold/copper exploration play. Let me cover some of the interesting and high potential targets they are working on now.
And there is always the gold.
Vangold is an advertiser on both 321energy and 321gold. They have not paid for this article and it is my opinion and only my opinion. As always, we want to remind investors they are responsible for their own investment decisions. I do own shares in Vangold and have owned them for several years. I am biased.
Vangold Resources, Ltd
written November 7, 2005
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