Commodity Prices

[dan_s]

A $7.6 Billion Natural Gas Pipeline in India...

A $19 Billion Rail Line in Brazil...

A $25 Billion Road Project in Africa...

These represent just three infrastructure projects now under way in
the $50 Trillion Global Build-Out.

That's right, $50 Trillion is up for grabs — thanks to a little-known G20 directive called
the High Level Panel on Infrastructure.

This stuff will take a lot of energy and a lot of metal. I still expect a run up in commodity prices later this year.

[k1f]

Hi Dan, Useful info, thanks. Hadn't seen it in browsing. The lemmings are all piling on the short side today.

[dan_s]

Oil breaking support at $80/bbl is not good. Lots of bad news out there and Europe looks terrible.

I do believe OPEC won't allow oil to go too low and there is now a ray of hope for natural gas. Heat moving into the Northeast should increase nat gas demand as lots of gas fired power plants kick it up a notch.

I'm working on CRK today. Very promising story if you believe gas will continue to drift higher. They have a nice block of acreage in the West Texas "Wolfbone" play that I'm hearing a lot of good things about. XTO, a subsidiary of Exxon, is about to take a major stake in the Wolfbone.

CRK uses Successful Efforts accounting so EPS is worthless. Take a hard look at CFPS on that one.

Also, water recycling is going to be a big business. Take a look at Ridgeline. I'm real excited about them coming to Houston to host our luncheon at the end of July.