(Headlines - scroll down for full stories)
1. Saudi Oil Exec: World Has Used Just 18% of Oil
2. August Home Foreclosures Rise 53%
3. Buffett Searching Israel for New Acquisitions?
4. Iran Oil Minister: Won't Use Oil As Economic Weapon
1. Saudi Oil Exec: World Has Used Just 18% of Oil
Despite talk that Hubbert's peak has been reached - the point at which half of
the world's oil is discovered and supplies begin to diminish - one Saudi oil
executive says that we have used just 18 percent of the world's reserves.
"The world has only consumed about 18 percent of its conventional potential,"
Abdallah S. Jum'ah, president and CEO of state-owned Saudi Arabian Oil Co.,
Aramco for short, told an audience of oil ministers and petroleum executives at
the OPEC conference in Vienna.
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Jum'ah estimates that the world's potential oil reserves are 4.5 trillion
barrels. That's enough to power the world for another 140 years at current
consumption rates.
The Associated Press notes that most experts believe Earth's oil resources are
at least 3 trillion barrels and maybe more than 4 trillion barrels. But experts
assume a 2 percent growth rate in consumption, and estimate that oil could only
last until 2070.
Jum'ah encouraged his audience to increase their oil exploration efforts. He
told them to "leave the minimum amount of oil in the ground," reports the AP.
Jum'ah believes that new technology will make it possible to add 1 trillion
barrels to world reserves over the next 25 years.
Jum'ah pointed to the recent discovery of an oil field in the Gulf of Mexico.
MoneyNews readers will remember that the discovery has the potential to increase
U.S. oil reserves by 50 percent.
Yesterday, Saudi Arabia pledged $70 billion to improve its oil and gas
infrastructure. The country hopes to increase production capacity and raise oil
output to 12.5 million barrels a day by 2009, says Bloomberg News.
Editor's Note:
- In April 2004, Financial Intelligence Report predicted that oil prices
would skyrocket from $29 per barrel to over $60 within a year. That forecast
was dead-on. Our investors made a fortune on that advice. Since then FIR has
been warning that oil prices would collapse in the next 12 months and could go
as low as $40 per barrel. Discover the top 5 ways you can profit from the
coming Oil Bust. It's already begun!
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2. August Home Foreclosures Rise 53%
The number of homes in some stage of foreclosure in August rose 53 percent in a
year. Compared to the prior month, foreclosures are 24 percent higher than in
July, according to a survey by RealtyTrac, an online marketplace for foreclosure
properties.
According to RealtyTrac, 115,292 properties went into foreclosure in August.
August foreclosures are second only to the 117,151 properties foreclosed on in
February.
RealtyTrac defines a foreclosure as any property in any of the following three
stages: "Pre-foreclosures - Notice of Default (NOD) and Lis Pendens (LIS);
Foreclosures - Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and
NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and
re-purchased by a bank)."
Rick Sharga, RealtyTrac's vice president of marketing, tells CNNMoney that the
slumping housing market is contributing to the spike in foreclosures. Homeowners
in danger of losing their homes could have unloaded their properties quickly in
the housing boom. Or, they could have refinanced their ever-increasing property
values. Now, those outs rarely exist.
Just take a look at the hard hit the previously red-hot markets are taking.
Florida's August foreclosures increased 50 percent in a month and 62 percent
over the past year. In California, foreclosures surged a shocking 160 percent in
a year. Nevada's foreclosures ballooned a whopping 255 percent from last August.
Sharga also points to the proliferation of ARMs, which help lower a monthly
mortgage payment but the rates and payments adjust after a specified amount of
time. Homeowners with ARMs that are resetting will likely face higher payments,
since interest rates have risen over the past few years.
Just three months ago, MoneyNews quoted Brad Geisen, president and chief
executive of property tracker Foreclosure.com as saying, "ARMs are a ticking
time bomb. Through 2006 and 2007, I'm pretty sure we'll see a high volume of
foreclosures."
In March, MoneyNews told you that Douglas Duncan, chief economist for the
Mortgage Bankers Association warned the MBA was "expecting an up-tick in
delinquencies due to a number of factors: the seasoning of the loan portfolio,
the increased shares of the portfolio that are ARMs and subprime mortgages, as
well as the elevated level of energy prices and rising interest rates."
Says RealtyTrac's Sharga, "The real wild card is the nature of the loans
themselves. Historically, ARMs were underwritten pretty conservatively. There
has been a loosening of standards with lower credit worthiness and smaller down
payments."
Editor's Note:
- Sir John Templeton first warned housing prices could crash 50%.
Discover how to protect yourself and even profit from the housing crash.
Go
here now.
3. Buffett Searching Israel for New Acquisitions?
Billionaire investor Warren Buffett may be scouting out new acquisitions on an
upcoming trip to Israel.
Buffett is set to touch down in Israel this Sunday for a three-day visit. The
Oracle of Omaha is scheduled to tour Tefen-based Iscar Metalworking, the company
his company, Berkshire Hathaway, bought 80 percent of earlier this year. Iscar
was Berkshire's first acquisition outside of the U.S.
Buffett is looking to diversify his holdings outside of the U.S. Buffett is a
strong believer that the value of the U.S. dollar will depreciate over the
long-term.
When he bought the controlling stake in Iscar, Buffett told the Israeli
financial daily The Marker that he would visit Israel later in the year for a
tour of Iscar and to see if there were "any other pearls out there."
He told the paper, "If your readers know a company that resembles Iscar, even a
little, have them call me immediately. I want to buy. Let them call me collect."
For those of you who want to buy Warren Buffett's car, the billionaire is
auctioning it off for charity. Buffett has put his 2001 Lincoln Town Car
Signature Series with leather seats and 14,000 miles on eBay. Buffett will pick
up the winning bidder at the airport by Buffett himself. The opening bid for the
car starts at $25,000.
The car also includes Buffett's signature "THRIFTY" license plate, says CNN
Money.
Proceeds from the auction will benefit Girls Inc., a youth-service organization
for girls ages six to 18, reports CNN Money.
MoneyNews readers will recall that Buffett bought a brand new Cadillac DTS in
June to show his support for GM chairman and CEO Rick Wagoner."
Editor's Note:
- Warren Buffett's billion-dollar bet on the dollar is raking in dough.
Find out how you can profit from Buffett's strategy.
Go here now.
4. Iran Oil Minister: Won't Use Oil As Economic Weapon
Iran's oil minister on Wednesday said suggestions that his country might use oil
as an economic weapon are baseless, reaffirming Tehran's commitment to supplying
crude markets despite its standoff with the West over its nuclear program.
Kazem Vaziri Hamaneh told an OPEC conference in Vienna that Iran -- the
11-nation cartel's No. 2 producer behind Saudi Arabia -- kept its crude exports
flowing even during its long war with Iraq in the 1980s and would not use its
oil as a political lever now.
"OPEC and Iran are committed to ensuring oil supplies," he said during a panel
discussion.
Iran, the world's fourth-largest producer, pumps roughly 4 million barrels a
day.
Concerns that Iran's showdown with Western powers over its nuclear activities
would lead to oil disruptions from the oil producer had helped drive crude
prices to record heights this past summer. Since July, prices have fallen by
nearly 20 percent amid expectations that Tehran could reach a diplomatic
solution and avoid the potential of punishing U.N. sanctions.
Hamaneh described Iran's aim to develop its nuclear sector as a natural step
toward meeting the energy needs.
"The country has no choice but to utilize all of its energy resources, including
nuclear," he said.
Iran insists its nuclear program is peaceful and geared solely toward generating
electricity. The United States and others contend it is covertly trying to build
a nuclear weapon.
Oil revenue drives Iran's economy. Hamaneh has stressed before in recent months
that Iran would not reduce exports.
Editor's Note:
- Three steps to success! Discover how you can multiply your profits and
cut risk down to size in three easy steps.
Go here now.
Editor's Notes:
- In April 2004, Financial Intelligence Report predicted that oil prices
would skyrocket from $29 per barrel to over $60 within a year. That forecast
was dead-on. Our investors made a fortune on that advice. Since then FIR has
been warning that oil prices would collapse in the next 12 months and could go
as low as $40 per barrel. Discover the top 5 ways you can profit from the
coming Oil Bust. It's already begun!
Go Here Now.
- Sir John Templeton first warned housing prices could crash 50%.
Discover how to protect yourself and even profit from the housing crash.
Go
here now.
- Warren Buffett's billion-dollar bet on the dollar is raking in dough.
Find out how you can profit from Buffett's strategy.
Go here now.
- Three steps to success! Discover how you can multiply your profits and
cut risk down to size in three easy steps.
Go here now.
- The nation's drinking water contains more than 2,100 toxic chemicals
that can cause cancer, yet the EPA has established enforceable safety
standards for only 87. Protect your health now.
