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June 30th, 2015

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Opportune Time for Oil & Gas Exposure
Stephan Bogner  May 21  

Oil Market Update
Clive Maund  May 06  

Innovation and Efficiency Drive U.S. Oil Supply and Demand
Frank Holmes  Apr 01  

Oil Market Update
Clive Maund  Mar 29  

Still Another Update on Oil
Ferdinand E. Banks  Mar 24  

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Ux U3O8 Price (Uranium)June 22nd, 2015
$36.50 Unch www.uxc.com

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expert analysis & newsletter briefs

Fission Uranium Corp.

"There is a grouping of Patterson Lake deposits now. Fission Uranium Corp. is one; the spinoff company of the exploration project is Fission 3.0 Corp. . .the company has made it clear that it doesn't intend to produce uranium, which means that someone has to take it out at some point. When it gets the proper offer, then it goes. . .Fission Uranium is content with continuing to explore its land package to determine how much uranium it can find on these structural features. It is currently drilling the east side of the property, which has not seen much drilling. Fission Uranium is also chasing mineralization to the southwest along the on-land portion of the mineralized feature, which is harder to find because it's covered by about 40m of glacial till. So it's still a drilling story at this point. . .the mineralization is so shallow at Triple R and so amenable to mining that the company doesn't have to prevent water from flowing into the workings by unconventional means. What is unknown is exactly how much depth potential exists on Fission Uranium's ground." (6/23/15) - The Energy Report Interview with Paul Renken

Nemaska Lithium Inc.

"Nemaska Lithium Inc. seems to be coming along quite nicely. The company's Whabouchi lithium project is hosted in a spodumene-bearing pegmatite in Québec that will ultimately produce lithium hydroxide. It's going to be a simple open-pit operation. Nemaska is financing a pilot plant that will produce representative hydroxide material that potential offtakers can see for themselves. . .[lithium hydroxide] trades at a $1,000/ton premium to lithium carbonate. If Nemaska can produce lithium hydroxide in a single step, which so far seems possible, it would certainly make the company, on a production basis, quite competitive with other producers." (6/23/15) - The Energy Report Interview with Paul Renken

DuSolo Fertilizers Inc.

"DuSolo Fertilizers Inc. has chosen to go the low capital expenditure route to quickly move into production. The company is in Brazil, which is geologically and commercially short of both potash and phosphate for fertilizer. DuSolo produces coarse phosphate for the local agricultural market. The company can essentially sell a bag of crushed raw rock or slightly enriched material directly to the farmers without having to blend it into higher-grade fertilizers at additional expense. That preserves its margins. By the same token, DuSolo doesn't have to build a costly plant to position itself in the higher-end enriched fertilizer component of phosphate and feedstock. I follow the company quite closely." (6/23/15) - The Energy Report Interview with Paul Renken

NexGen Energy Ltd.

"Another company that is on the same mineralized trend continuing from Patterson Lake off to the northeast is NexGen Energy Ltd. I follow NexGen because it is on the same geologic feature that hosts Fission Uranium's mineralization. It seems to be a continuation of the same geology. . .NexGen is at an earlier stage, but it has definitely proven that the same feature that is mineralized on Fission's ground is mineralized with high-grade uranium on its ground, too. It's also a drilling story. NexGen has something like five drill rigs testing its land package at Rook 1 this season. It has to get enough uranium intercepts to get up into the same resource league as Fission. It is certainly going all out to do it." (6/23/15) - The Energy Report Interview with Paul Renken

DuSolo Fertilizers Inc.

"DuSolo Fertilizers Inc. has chosen to go the low capital expenditure route to quickly move into production. The company is in Brazil, which is geologically and commercially short of both potash and phosphate for fertilizer. DuSolo produces coarse phosphate for the local agricultural market. The company can essentially sell a bag of crushed raw rock or slightly enriched material directly to the farmers without having to blend it into higher-grade fertilizers at additional expense. That preserves its margins. By the same token, DuSolo doesn't have to build a costly plant to position itself in the higher-end enriched fertilizer component of phosphate and feedstock. I follow the company quite closely." (6/23/15) - The Energy Report Interview with Paul Renken


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from the publisher
  Robert J. Moriarty

Welcome to 321energy.



Tesla Could Be Changing The Dynamics Of Global Energy


Michael McDonald
admin@Oilprice.com
http://oilprice.com/
April 30th, 2015

Tesla's announcement last week about creating a new line of batteries for use by businesses, consumers, and the electrical grid at large is a game-changer for the industry. Currently, when individuals or companies need back-up power, they usually rely on generators. Effective battery storage for large amounts of energy would be a game changer in that it would enable a separation of generation and use of energy produced through clean fuels like solar and wind power.

The big problem with solar and wind right now is that the energy is only useful when it is actually produced and, because a company cannot modify generation to correspond with demand needs, any excess power has to be sold back to the market for immediate use. Tesla's new batteries could go a long way towards solving this problem. It is likely that Solar City, for example, would be very interested in any home application for large scale battery technology.

The unique differentiator here is not necessarily Tesla's technology. The company certainly has state of the art tech, but what might make battery production feasible is the economies of scale that Tesla is looking to capture in battery production. Tesla's new gigafactory will be an enormous production facility when it is completed and the facility should be able to produce 50 GWh of annual battery production eventually. This level of production should enable mass production of batteries at a fraction of the current cost.

But beyond Tesla, these economies of scale could also have benefits for other firms in the same industry. To the extent that Tesla's production capabilities create new demand for component parts, the result would be lower costs for inputs in batteries. As supply costs fall, battery production costs across the industry would fall also leading to increased quantity demanded by consumers and businesses.

Put differently, when Edison invented the light bulb, the standard method for producing vase shaped glass vessels was very different than what it is today. Producing a vase by traditional glass blowing is expensive and time consuming. So if a person had to make just one or two light bulbs, it would likely take hours of work. Once millions of light bulbs are needed, the process becomes industrialized and the cost per bulb falls to pennies. The same principle applies to the economics of battery production, and that already has even competing producers salivating.

Batteries already may be much more profitable than most people realize, and so if Tesla can open up new markets for its products, it could drive the company's earnings dramatically higher. The exact level of profit will depend on many different factors of course, but assuming that Tesla can sell its batteries based on charge capacity, then the profits could be astronomical. Tesla recently increased the price on some of its vehicles by $4,000 in concert with a 10KWh increase in battery capacity.

This implies that the company thinks 1KWh of battery capacity is worth roughly $400. 1 GWh is equal to 1 million KWh and Tesla's new factory should be able to produce 50 GWh annually when at full production. This would, in turn, imply $20B in annual revenue from output produced by the factory. Of course this value will vary dramatically based on many factors including battery size and usage, but the raw figures are mind-boggling nonetheless and suggest the magnitude of the market potential here. Even if Tesla ultimately ends up selling battery capacity for one-tenth this amount, then the result would still be a huge boost to the company's bottom line.


Michael McDonald
admin@Oilprice.com
http://oilprice.com/
April 30th, 2015



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