“It’s all about beating the clock”. This quote comes from a wise old service manager, advising me on how to maximize my income as a flat-rate technician. If you have ever wondered why your car doesn’t get fixed correctly, or all your concerns weren’t addressed, you can blame, in part, the flat-rate pay structure.
For a repair shop, there is little profit in the $29.95 oil change. By the time a shop pays its technician, pays for the oil, the filter, and the hazardous waste disposal fees, there’s no money left.
This low profit margin is worsened by the extremely competitive “Quick Lube” business, which forces local repair shops to refrain from raising prices, despite rising costs.
Recently, the price of a barrel of oil rose to $40, the most expensive price in American history. With the rise in oil prices and constant instability in the Middle East, the United States seems headed for an energy crisis.
But there is an abundant, low-cost energy source located throughout the country. That energy source is coal.
As burgeoning economies push the demand for oil to historic highs, some analysts say the world’s oil production is in the process of peaking. Believing that an oil crisis -and, thus, higher prices – is inevitable, some investors are seeing dollar signs in their future.
According to the International Energy Agency, 2004 world oil demand increased by a higher rate than any year since 1988. And if current trends continue, worldwide oil demand will exceed 120 million barrels per day, according to the Energy Information Administration.
Did you know that much of the oil in the ground is still present after primary recovery? In the king’s english that means there is still a lot of oil left in a well even after 10 years of pumping. The reason oil production slows is that the natural drive that once pushed oil aggressively towards the wellbore has subsided. Normally, the natural drive is either water or gas in the formation. In this article, we look to explain some of the common enhanced or secondary/tertiary methods of oil recovery.
I was actually a passenger in a car that was having an active oil leak. The driver knew what was happening, and was warned to pull to the side of the road and call a tow truck, but she wanted to try to make it home. Unfortunately, she didn’t. The engine seized up, never to run again. What a foolish and costly mistake.
Oil is by far the most widely traded commodity in the world. It is also the most corrupt.
By way of example we need look no further than the events of the past two years. What with our TV screens filled with images of blazing oil pipes in Iraq, traffic jams in Shanghai and hurricane disasters in the US. A seemingly endless list of horrors endlessly regurgitated. All this with one goal in mind: to convince us all we face an oil crisis of biblical proportions.
Investing in direct participation, or working interest ownership in new oil & gas prospects being offered by only the very best oil & gas independents, and broker/dealers is now a pretty common way to beat the stock market, and just about any other passive investment being offered to you today… particularly when… but only when… you can do it correctly…
The decision to invest is confusing in general but when you are deciding on very particular stocks, it takes a significant amount of research in order to feel confident in your choice.
One popular choice of investment is that of oil stocks; the reasons for its attractiveness are incredibly diverse. And deciding whether you want to involve yourself in this particular industry is a very personal choice.
Startlingly enough, it looks as if the time will soon arrive when the USA will have to play catch-up with Cuba in oil exploration. The diminutive and destitute communist enclave that serves as Fidel Castro’s personal cigar plantation now realizes that it has enough oil reserves under its coastal waters to prop up its no-go economy for decades and, incapable of assembling the capacity to out the oil itself, the island nation has begun to license drilling rights to other countries, including China, the prospect of which alarms us, and Spain, the idea of which invites us to think of tapas.
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