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Bullboard - Stock Discussion Forum Longford Energy Inc V.LFD

TSXV:LFD - Post Discussion

Longford Energy Inc > Oil to double (inside story)
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Post by taxdemicco on Mar 05, 2011 11:51am

Oil to double (inside story)

Hello Everyone,

What a break for LFD, a Q4-2011 oil producer when prices are going to DOUBLE.....

Matter of time before we SOAR. Those warrants are going to get exercised in no time. People will want in.

Lets calculate: 5,000 barrels at $ 200 per barrel of oil at 365 days is: $ 365 million dollars in 1st year alone, or 6X the market cap of LFD.

Talk about cheap,

JMHO


British minister says unrest can double oil prices

By Philippe Huguen | AFP News

The price of a barrel of crude could double if the unrest in the Arab world deteriorates, oil trader turned British international development minister Alan Duncan warned Saturday.

Duncan, who has 30 years' business experience in the Gulf, told The Times newspaper that the price of a barrel of crude could top $200 (140 euros), well above the record high of $147 reached in July 2008.

If extremists used the instability in the Arab world to bomb oil tankers, pipelines or Saudi reserves, prices could even hit $250 a barrel, Duncan said.

The Times said analysts fear such highs could trigger another recession in Britain.

"I've been saying in government for two months... $200 is on the cards if this goes wrong, if anyone is reckless and foments unrest. All I'm predicting is danger," said Duncan.

"It could be very serious. If crude oil doubles, you're going to have a very serious spike (in petrol prices). Try living without it for a week."

The British government is under pressure over the price at the pumps, with 63 percent of the cost going to the exchequer.

If the worst happened, current prices of £1.30 ($2.10, 1.50 euros) a litre at the pump "could look like a luxury", Duncan said, warning of £4 a litre.

"A Twittered-up generation now has massive power. All Arab countries are moving on. But they are all different," he said.

"The powers are shifting but you can't do it overnight. We are asking them to do at the flick of a switch what we took centuries to do.

"The majority of these rulers are not dictators. These are countries with their own history and cultures. Who are we to lecture? We must treat these countries with respect."

The people who want all unelected leaders to go should remember Iran, Duncan said.

"It didn't work with the shah, we must pray it works in Tunisia, Egypt and Libya.

"At the moment this is secular, economic and demographic but if it goes wrong you will see Islamic fundamentalism becoming the only vehicle for people's grievances," he warned.

Comment by HHdoc on Mar 06, 2011 3:07am
"Lets calculate:   5,000 barrels at $ 200 per barrel of oil at 365 daysis:   $ 365 million dollars in 1st year alone, or 6X the market cap ofLFD".Somebody please explain to taxiboy how a production contract works. I have tried to do this previously, but he does not get it?A 40% interest in a psc gives a company the right to pay 40% of the capital costs, except in ...more  
Comment by massEntropy on Mar 06, 2011 10:07am
Oil is not going to go to $200 per barrel, baring another major war involving the US. People will simply stop driving, it's called demand destruction. Only the Pentagon will pay $200 per barrel for the ability to conduct war.
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