Monday, March 9, 2009

a reader asks: what the heck is up with Oil?

Brother,
I called you last week and asked you to email me a brief about what is going on with oil and why it goes up when everything is else seems to go down.I don't understand speculation.We are purchasing a house in an area which revolves around the oil field.This town named Tioga has about 1,000 residents and is currently planning a 10 million dollar HESS office compex to be built and to go along which that a 380 unit housing complex which will consist of single family homes,senior living,apartments and townhomes.
Tioga is the oil capital of North Dakota,because it sits in the center of The Bakkan Formation.The Bakkan (if you have not looked into it) is huge oil reserve.It is said to be some of the sweetest crude oil of all time,but what lies under the Bakkan is the real prize and its called 3 Forks.
3 Forks is rock that holds oil and until recently they have not had the technology to drill into it.3 forks is said to be probably the greatest oil discovery in North America.It holds more oil then the whole Alaskan Reserve and they will start drilling into 3Forks this spring.
North Dakota is an Energy,working state. It is not too green and like Wyoming it uses its natural resouces to their full potential.Its unempoyment is the lowest in the nation and it is one out of only 4 states with a surplus and it has the largest out of those 4 states.
I guess what I am asking from you is to give you're opinion on oil speculation and mabye explain it and why its happening.Also I would like your opinion on possible realestate investments for this area. People around here say that when the rest of country's bubble burst thats when ours starts.If that is the case then I would like to take advantage the bubble and learn to buy and when to sell in the realestate market.
If you can get back to me that would be swell.


Thankyou,

Sister


okay, so what if it's my sister! these are very well considered questions. I'll address this in tomorrow's newsletter. the rest of you are welcome to leave your thoughts as a comment to this post. if you write something halfway worth while as a comment here I'll give you a free week of the Trend & Value Letter (if you are not a subscriber already).