Weekend Edition of Oil Investor's Business

"if you're really curious about something, you probably can figure out a good way to test it; try to attain accurate beliefs first and then let your emotions flow from that"

Since March 2003, Shell has risen 71% and BP 63.5%, Analysts estimate that underlying operating costs and capital expenditure across the oil industry are increasing 10 to 20 per cent a year. "BP and Shell trade on prospective price/earnings multiples of just over nine and BP’s prospective dividend yield is 4.5 per cent. Also upgrades could be in the pipeline if analysts start to base forecasts on $100 oil."
-Over the same period the price of US light sweet crude has risen from $30 a barrel to a all time high of $119.93 last month.
Do many see an Increase in Camel Demand? Increase in camel prices? Increase in camel feed and ultimately, what will the camel run on? Long term investments in the camel?
Farmers in the Indian state of Rajasthan are rediscovering the humble camel. Market prices for these “ships of the desert”, which crashed with the growing affordability of motorised transport, are rising again as oil prices soar. “It’s excellent for the camel population if the price of oil continues to go up because demand for camels will also go up,” says Ilse Köhler-Rollefson of the League for Pastoral Peoples and Endogenous Livestock Development. “Two years ago, a camel cost little more than a goat, which is nothing. The price has since trebled. A sturdy male with a life expectancy of 60-80 years now fetches up to Rs40,000 ($973), compared to Rs5,000-Rs10,000 three years ago, according to Hanuwant Singh of the Lokhit Pashu-Palak Sansthan, a non-profit welfare organisation for livestock keepers. Entry-level tractors cost around $4,000.
"Animal-lovers hope that the surge in oil prices will enhance the status of camel-breeders, who resent the lack of respect society has accorded their traditional knowledge, and give the Raika a strong incentive to stop selling female camels for slaughter." The Financial Times

What is your take, has the world has exhausted about half of all crude supplies?

MPM
-Learn something new everyday.