Friday May 16, 2008

Zimbabwe adds $500 million dollar note as hyperinflation runs on

africa.reuters.com :

Zimbabwe's central bank introduced 500 million Zimbabwe dollar notes worth just $2 on Thursday [15 May 2008] in the latest sign of spiralling hyperinflation, only a week after issuing the 250 million bill. The new highest denomination note would buy about two loaves of bread. Zimbabwe, which has the highest inflation rate in the world at around 165,000%, has been beset by long queues at banks as consumers seek banknotes to stock up on basic goods, the prices of which are constantly rising. The Zimbabwe dollar, which had been officially pegged at 30,000 to the U.S. dollar before exchange rules were relaxed recently, currently trades at about 250 million to the greenback.

- Everyone can be a billionaire by picking up just two of these $500 million dollar notes. The photo shows a Zimbabwe $50 million dollar note which was released in Apr 2008. All the people there including children have to learn to count money in terms of millions and billions of dollars and yet the government somehow doesn't seem to be able to count a couple of million votes in an election that has been held more than a month ago. Read Cathy Buckle's site for ongoing articles reporting from the frontlines of the fastest hyperinflation going on in recent history.

See also :

1. Zimbabwe inflation hits 165,000% (Apr 2008)
2. Zimbabwe: IMF estimates inflation at 150,000% (Jan 2008)
3. Zimbabwe : Not Reality TV
4. Peak Oil Crisis : Zimbabwe

(2008-05-16 08:19:23 SGT) [Biz] Permalink Comments [0]

Bosch sets up lithium-ion project unit in automotive group

greencarcongress.com :

Bosch has set up a new project unit in its automotive group to develop high-performance lithium-ion batteries and packs, and to focus the company's efforts on further developing the core competence it needs for the increased use of electrical motors in drive systems. According to CEO Franz Fehrenbach, more than 40% of the research and development budget now goes into products that conserve resources and protect the environment. Sales generated with these systems are expected to grow at a double-digit rate to more than 750 million euros (US$1.2 billion) in 2008, and are expected to exceed 1.2 billion euros (US$1.9 billion) in 2010.

- Indeed there seems to be a veritable stampede to develop lithium-ion battery packs for the next generation of hybrid cars and electric vehicles. In just the past week or so, we've had announcements from the likes of Nissan and NEC, Volkswagen and Sanyo, and now Bosch is getting into the game. The more the merrier. I'm just waiting for the car manufacturers, the likes of Honda and Toyota, to jump in and integrate them into actual car models.

See also :

1. Nissan, NEC to mass produce lithium-ion batteries for cars
2. VW and Sanyo Electric to partner on lithium-ion batteries for hybrid and electric cars
3. Hybrid vehicle battery market to reach $2.3 billion by 2015
4. A123Systems receives $30m funding to develop hybrid Li-Ion batteries

(2008-05-16 01:20:58 SGT) [Energy] Permalink Comments [0]

Thursday May 15, 2008

Tesla Roadster electric sports car aims at Europe market

peakoil.com -> news.yahoo.com :

Earth-friendly thrill-seekers in Europe can get into the driver's seat of their own Tesla Roadster, provided they have a trunkful of cash to buy an electric sports car that zips from zero to 100 kph (60 mph) in less than four seconds. California's "green" governor Arnold Schwarzenegger bought one. So did actors George Clooney and Kelsey Grammer. Tesla Motors opened its first store over the weekend on the Los Angeles coast and has begun taking orders in Europe via the Internet. It plans to show the Roadster off at the Cannes Film Festival this month and at the Monaco Grand Prix and Le Mans auto races. Thanks to a wimpy dollar and stumbling US economy, the Northern California car maker is focusing on Europe a year ahead of schedule and plans to soon open stores in Paris, London, Munich and other cities there.

With a price tag of 99,000 euros (153,500 dollars), many eco-conscious consumers will likely be left drooling on the curb for the time being. Nonetheless, industry analysts say that the Roadster will enliven the humdrum image of electric cars and, hopefully, spur competition leading to more affordable green vehicles. The Roadster can go as fast as 200 kilometers (124 miles) an hour and travel 300 kilometers (186 miles) before recharging. The car is hailed as a quantum leap in the effort to reduce world dependence on oil. Tesla Motors is busy working on a White Star family sedan that the firm hopes to have on sales floors by 2010.

- The Tesla Roadster strategy seems to be working out pretty well. By aiming for the highest of the high end, they are putting electric cars squarely in the limelight. With all the celebrity endorsements, the Tesla Roadster is turning out to be the Toyota Prius of EV's. Even Arnold Schwarzenegger is buying one. That's a far cry from his Hummer days, and that tells you how politics has evolved with crude oil prices going well over $120 per barrel and gasoline prices going well over $4 per gallon over in the USA.

See also :

1. Green business strategy
2. Zap teams with Lotus for electric sports car

(2008-05-15 00:20:38 SGT) [Energy] Permalink Comments [0]

Wednesday May 14, 2008

Developing countries eye nuclear power: report

news.yahoo.com :

More than 40 developing countries have recently approached United Nations officials to express interest in starting nuclear power programs, the Washington Post reported on Monday [12 May 2008]. The interest among developing countries ranging from the Gulf to Latin America is a concern to proliferation experts, who say it could provide the building blocks for nuclear arsenals in some of the countries. The newspaper said much of the interest in nuclear power is driven by economic considerations including the high cost of fossil fuels. However, some Middle Eastern countries with access to large stocks of oil or natural gas, such as Kuwait, Saudi Arabia and the United Arab Emirates, appear to be investing in nuclear power partly because of concerns about a future regional arms race, the Post said.

- The part about nuclear proliferation fears is pretty much bogus. You only need 4% enriched uranium to power a typical nuclear fission reactor. Sure, anyone who is going beyond that is probably up to no good, and anyone who refuses to let others inspect their facilities is also probably up to no good. And with the current spy satellite technology, there really aren't many places to hide a secret nuclear weapons making facility.

As for the Arabs, the point is not that they are supposed to have access to "large stocks of oil or natural gas". The point is that they know these resources do not last forever, and they are making conscientious plans to think ahead for the future by planning to build nuclear power stations. And furthermore, with the prices of crude oil and natural gas on the rise, you can't really fault them for trying to build nuclear power plants so that they can export more of their precious fossil fuel products for more money, can you?

How about we look at China. They will be building 20 to 30 new nuclear power plants over the next decade or so. Is anyone in their right mind going to seriously yell that the Chinese are building these nuclear power plants in order to build more nuclear weapons? Now that's a crazy thought. These two technologies, nuclear weaponry and nuclear power plants, actually have little in common besides the fact that both use uranium. The anti-nuclear faction wants you to believe otherwise. They want you to associate nuclear power plants with "kaboom". They have convinced many people around me, and now all they can think of when "nuclear" is brought up is "kaboom". The anti-nuclear faction would rather you clamour for more coal plants, which actually release a lot more radiation into the air (via coal ash) than operating nuclear plants do.

But I am picking a side and I am sticking to it. I am putting sizeable amounts of money into nuclear-related companies, mining, infrastructure, utilities, I am buying via my private investment fund into the same area, and I am also buying into clean energy companies as well. But I am putting exactly zero dollars into coal-related companies. And that's how I am playing the game.

See also :

1. More nations clamor for nuclear energy
2. Asia going nuclear amid rising oil prices, global warming concerns
3. China's nuclear energy plants to power up
4. Gulf Arab states want nuclear power
5. Malaysia requires two nuclear reactors to generate electricity
6. Vietnam is going nuclear

(2008-05-14 23:53:00 SGT) [Energy] Permalink Comments [1]

Platinum ETN drives platinum up sharply upon launch - but still no platinum ETF (yet)

reuters.com :

Platinum ended sharply higher on Friday [9 May 2008] as the launch of U.S. platinum exchange-traded notes boosted sentiment, while gold also finished up on record crude oil prices. Investment bank UBS launched two ETNs offering long and short trading strategies in platinum. ETNs, unlike exchange-traded funds, do not purchase physical platinum to back the number of shares sold.

The two ETNs - UBS E-Tracs Long Platinum ETN (PTM) and UBS E-Tracs Short Platinum ETN (PTD) - started trading on Friday [9 May 2008] on the NYSE Arca platform. Spot platinum rose to a high of $2,095 an ounce, compared with $2,008.50 in New York late on Thursday, but the metal was still more than $200 below a lifetime high of $2,290 an ounce hit on March 4. Platinum's major industrial use is in making autocatalysts, particularly diesel catalysts, as it helps clean environmentally damaging fumes from exhausts. It is also used in jewellery.

- So while we still don't have a platinum ETF yet (akin to the Gold GLD ETF) holding the physical commodity itself, the PTM (PlaTinuM) ETN should be a close enough solution for investors who wish to have a long exposure to the underlying price. At the same time, its evil twin, the PTD (PlaTinum Down) ETN provides a way for people to bet on potential downside price movements.

See also :

1. Platinum price breaks through $2000 for the first time
2. Platinum hits record $1972.75 on South African power outages
3. Gold soars above US$920 as power crisis closes South African mines ($1652 on 25 Jan 2008)
4. Gold, oil rise after Bhutto assassination, platinum hits record ($1542 on 27 Dec 2007)

(2008-05-14 17:53:03 SGT) [Biz] Permalink Comments [0]

Crude oil hits $126.98, extending record run to 7 days in a row

This article belongs to the NYMEX crude oil price records story arc.

money.ninemsn.com.au :

Crude oil came within touching distance of $127 a barrel on Tuesday [13 May 2008], extending its record-breaking run for a seventh session, while US petrol and heating oil prices also climbed to new highs. NYMEX June West Texas Intermediate hit a record $126.98.

news.bbc.co.uk :

Oil prices have hit a record just shy of $127 a barrel after Iran said it was studying a plan to cut crude output. President Mahmoud Ahmadinejad said a proposal to reduce Iran's crude output was being reviewed by experts. The report sent US light, sweet crude to a new high of $126.98. Analysts doubted whether Iran would actually cut output but the report sent jitters through oil trading floors. The commodity could hit $200 within the next six months.

A number of factors have combined to push oil on its recent record-breaking run. There have been supply disruptions in Iraq, Nigeria and the UK's North Sea, while there has also been strong underlying demand from China, which is buying crude to fuel its economic boom. At the same time, concerns about the US economy and a weak US dollar have made oil a more attractive investment.

- Whoa, so much for the "due for a correction" part that the so-called analysts have been saying only yesterday. Like I said, "it would be showing incredible strength, however, if it stays persistently above $120." And there you are, crude oil *is* showing incredible strength, snapping back from what seemed like an inevitable downward correction towards the $120 support level. All that it took was for Iran to wade onto the scene and start talking about *reducing* their oil output. This at a time when Bush & Co has been practically leaning on the Saudi's on *increasing* their oil output.

But what else would you have expected from the Iranians, who have been saying just 3 weeks earlier that oil was too cheap at $115 : Even at 115 dollars a barrel, oil is priced too low, Iranian President Mahmoud Ahmadinejad said in comments published on Saturday [19 Apr 2008] adding that the commodity "should find its real value". "Oil at 115 dollars a barrel in today's market is a deceiving figure, oil is a strategic commodity and should find its real value," the state broadcaster's website quoted Ahmadinejad as saying.

You know, I rather suspect that their target for "real value" is somewhere north of $300 per barrel. Not that I mind personally, in the long run, being long oil-related equities and all, but I have to say for now, WOULD YOU PEOPLE GIVE US A DAMNED BREAK?!!! Man! This is getting to be an impossible market to get into, with crude oil breaking records 5, and then 6, and now 7 trading days in a row and all. And this is not the first 7-day run either, we've already had another 7-day run back in mid-March. Yes, I *am* keeping track. And no, I am *not* going to buy into a market that is setting records every single day. I might be bullish on oil but I'm not that crazy as to be buying into a vertical 90-degree exponential take-off.

Alright, stay calm. Watch the technicals. Support levels are at $120, $110, $100 and $90 (yes I know - ha, ha). Resistance levels are at $150, $180, $200, $300 and over $400. Take your pick, but I will be buying in at support.

See also :

1. Crude oil pulls back after hitting $126.40, breaking records 6 days in a row
2. Crude oil caps record-breaking week by reaching $126.27 on NYMEX
3. Crude oil continues 5-day record-breaking run to reach $125.98
4. Crude oil continues record-breaking streak, hits $123.93 on NYMEX

(2008-05-14 12:49:49 SGT) [Energy] Permalink Comments [0]

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