Re: wanamineWell as far as macro economics is concerned we now have two mayor "triggers" to follow up on. First beeing that China s economy still is expanding and refuses to slow down. Thus we have a key driver for demand for all comodeties as well as of course energy.China’s economy
grew 9.5% in the 2nd quarter. (The US estimate is 1.8%, by contrast.) (Bloomberg) Chinese industrial output was
up over 15% (Reuters).
The second is that the quantitative easening that has halted now since QE2 now seems to be needed to be followed by additional stimulus e.g QE3. Given the anemic growth or rather exclution of growth in the US economy and the recend very depressing US job numbers and that we're getting in to president election time I personally see no way out of this withour further stimulus.That is at least if Obama wants to be reelected. Bernankes speach yesterday indicated this is the case and just on these remarcs commodeties and stocks all strengthened.
At the same time inflation is increasing despite anemic economic growth and in orther to try to manage this we now see central banks in Europe hiking interest rates.
People are slowly begining to wake up to the fact commodetioes will be the ONLY place you can invest in as all currencys are depreciating in value as we speak and inflation is taking it's toll.
I think it's worth while to listen in to this dialogue between Bernanke and Ron Paul. Paul gives a good picture in the first half related to where we're at. As far as the second part where Mr Paul focuses on gold this is my remark - .
/www.youtube.com/watch?v=2NJnL10vZ1Y&feature=youtu.be">https://www.youtube.com/watch?v=2NJnL10vZ1Y&feature=youtu.be
Nevertheless ALL OECD countries not only PIIGS in Europe has humongeous amounts of debt. And in the US also the states themselves have taken on debt to an extent unmanageable. Thats not an environment where you buy bonds. So if thats an investment private investors are shying out of. Where can they turn?
All BRICS countries however (and that's some 3,5 billion people) China, India, Russia, Brazil etc are expanding and not only are they expanding there at a phase of their growth trhat is particularely in need of energy and commodeties. So demand for commodetioes is there as the same time commodetioes will be the ONLY safe heaven for investors.
Now of all of this is not macro fundamantals in favour of a growing oil producer such as STP I do not know what is.
Remember oil in fact is the REAL currency as all of the economic growth depends on it. Gold at best can protect your worth but oil will increase over time in relative value as scarecy (more commenly reffered to as Peak Oil) start to kick in.
Regarding specific STP fundamantals I imagine the financial report regarding the period between 1st of April uttil 30th of June will be made public quite soon, but I have no specific dates on when. Usually is there a months delay ..in this reporting?
Then we have the new reserves update following the core holes drilling made last winter.
Then as per June STP also has initiated the Read Earth project (objective here is to minimum produce 10.000 bpd) and hopefully we'll get som news on how well that pilot is progressing next coming weeks and months.
- Red Earth, Q2-2011, restart pilot project. Objective is to produce minimum 10.000 bpd.
- updating of the company´s reserves & resources after fiscal year end (June 30)
- McKay Phase 1 12.000 bpd construction updates (Road 80% completed, Plant and Pad site construction 75% completed, 200 person camp installed growing to 300 by mid March, all long lead equipment orders are placed and shop fabrication has begun.)
- McKay Phase 2 24.000 bpd application to be submitted during fall 2011.
- Senlac Phase J during third quarter 2011
- Wabiskaw Pilot project - to start Q4 2011 (Significant potential project)
- McKay phase 1 Production of 12.000 bpd to start Feb/March 2012
So then adding current and future production together we get this summary:
Senlac 4.000 - 5.000 bpd
McKay 1 12.000 bpd
McKay 2 24.000 bpd
Read Earth Pilot Project - to start during Q2 2011 (objective minimum 10.000 bpd)
Wabiskaw Pilot project - to start Q4 2011 (Significant potential project)
We-re now fast approaching a future production opportunity of beyond 50.000 bpd. More than a 10 fold increase vs. current production levels in sight. That´s then the production opportunity level we´re you start getting some real and serious attention from larger players in the market e.ge like neighboring Petro China and the alike
Bottom line - I woulden't worry to much about dips and I sure reagard all of these a good buying opportunities. One day in an environment like the one I have described above we easely could see STP charge upp the charts like nothing you have ever seen as macro as well as company specific events may trigger such a move separately or in a coordinated fashion.