Product Description

Analyze how the falling production and rising demand of oil has enabled savvy companies and investment banks to cash in with Black Gold. You'll find investment suggestions -- from ETFs and energy futures to hedge funds -- that will allow you to reap substantial profits from current and future situations as well as short human-interest stories that illustrate every issue discussed. You'll also find a timeframe for the peak of oil production -- one that is more realistic and gaining acceptance with both scientists and economists. Drawing on historical background, current issues, and expectations of the energy road ahead, Black Gold offers information you'll appreciate and understand so you can make the most of a market poised to grow exponentially in the years ahead.

Product Details

• Amazon Sales Rank: #1017972 in Books
• Published on: 2006-06-05
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 224 pages

Review
"The book has useful points to make…" (Lloyd's List, August 2006)

From the Inside Flap
Modern living is driven by oil, from the gasoline that propels our cars to the electricity that powers our homes to the military that protects our freedom. Throughout the twentieth century, a relatively uninterrupted supply of oil has fueled our nation's unparalleled growth.

Yet steadily increasing demand from the United States, as well as from rapidly developing nations such as China and India, has begun to seriously strain the world's oil reserves. This representsthe onset of a challenging new economic, philosophical, and political world—and an unprecedented opportunity for in-the-know investors.

Black Gold argues that oil prices are primed for an "überspike" and examines how institutional and individual investors can reap substantial rewards from this volatile and uncertain environment. Written by veteran oil analyst and journalist George Orwel, this insightful and prescient book provides you with:

• Analysis of alternative fuel sources, from solar and nuclear energy to wind and even wood, and the pluses, minuses, and potential investment value of each
• Insights from dozens of major figures, from energy industry executives and observers to seasoned investing pros
• An insider's look at Saudi Arabia and other Middle Eastern countries, discussing how what they say they can produce—versus what they actually can produce—will rock future markets
• Detailed charts and graphs on why the best time to invest in oil-related investments is NOW—and proven strategies for uncovering the most profitable opportunities
• Actual investments, from ETFs and energy futures to hedge funds and oil-related companies, that stand poised to provide you with better-than-average returns over both the short- and long-term

Oil is the dominant energy source fueling the modern economy. When you combine that knowledge with the fact that oil is a nonre-?newable resource that will be exhausted at some indeterminate future time, it is easy to see how its value to you as an investor cannot be overstated.

Black Gold views this opportunity from every angle. Whether you are an oil industry executive looking for new perspectives or an investor searching for new ideas to enhance your portfolio's performance, this dramatic and valuable book will change the way you view today's evolving energy marketplace—and your role as an investor in that marketplace.

From the Back Cover
Praise for BLACK GOLD

"An interesting and impressive book on an important subject."
—Anya Schiffrin

Director of Journalism Programs at the Initiative for Policy Dialogue at Columbia University

"There has been no hotter market than oil—the commodity and the industry—and this book provides much useful information on the current and future situation.
A cogent analysis, it sheds much light on some of the major issues facing the industry—and investors—today.
A good read from a much-practiced journalist."
—Michael C. Lynch President, Strategic Energy and Economic Research Inc.

"Black Gold lays out in easy-to-read language the peak oil argument and outlines why the debate over peak oil is becoming so intense. Orwel explains why oil is, indeed, black gold and highlights the investment implications of peak oil."
—Matt Simmons

Bestselling author of Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy

Customer Reviews

No real new ideas for investors, disappointing
I had high hopes for this book, given the subject matter and my interest in energy stocks. "Black Gold" by reporter George Orwel (no, he's not the author of "Animal Farm") discusses the energy industry in very broad macroeconomic terms, and offers a repetitive explanation of the concept of "peak oil," that is, that point at which oil production reaches its peak before the known supply of reserves begins a steady decline. The pessimists (mostly geologists) think peak oil will occur in the next five to 10 years, while the optimists (mostly economists) think peak oil will occur in 30 years at the very earliest. This dwindling supply will create opportunities for investors who want to capitalize on increased investment in oil exploration infrastructure and technology. This book was published when oil was at $80 a barrel in summer 2006, which at the time was a peak price, and the prediction that oil would reach $100 a barrel within two years proved to be remarkably conservative. China and India show no signs of slaking their thirst for oil, environmentalists oppose tapping into potentially vast U.S. resources, and capacity constraints among refiners limit supply of gasoline. As this book is not the first to point out, China may have as many cars in the next 10 years as the United States does now.
The book also has no specific ideas on which energy-related companies are best positioned to grow in the next five to 10 years. For that kind of info, I recommend investors do some homework on the oil service companies, such as Weatherford International, Schlumberger, Cameron International, National Oilwell Varco, and Halliburton. Perhaps only two of these companies are even mentioned in this book, which tends to discuss ideas about investing in energy-related ETFs and commodities. Perhaps these investment ideas are good, but they are also much more volatile for the average investor. Also, the book doesn't discuss specific companies in the field of alternative and renewable energy, which is also drawing increased investment.

Excellent reading for both the general consumer and investors
First, a disclaimer. I no longer have financial investments in the stock or bond markets so I do not keep up to date on the details of their activities, although I do check the ups and downs of the Dow, NASDAQ, and the S & P on a daily basis. While George Orwel's "Black Gold" should appeal to active investors, particularly to those involved in or considering the oil and natural gas markets, it's primary appeal to me was the background the author supplies in Parts One and Part Two of his book regarding the oil industry in general, especially its past development, its current status, and its probable future.

All of us are impacted by the oil industry in one way or the other and the future of oil (most recently its price at the gas pump!) is of vital concern to virtually everyone. Furthermore, the problem of oil conservation, the controversies surrounding air pollution and global-warming, the possibility of running out of oil sometime in the future, and the urgency of developing alternative fuels are all "hot topics" right now, both in the national and international press as well as among ordinary consumers.

Part One of Orwel's book is entitled "The End of Oil" and asks the question: is this "The End of an Era?" Then the book discusses the consequences of an oil peak and probes the matter of alternative fuels, from solar and nuclear energy to wind and even wood. Orwel discusses the advantages and disadvantages of each alternative fuel source and includes information regarding the potential investment value of each alternative.

Part Two is entitled "The Middle East Problem" and asks the question "Is the Saudi Oil Supply Adequate?" and discusses the "Iraqi Oil Supply and the Battle of Baghdad." Orwel offers an insider's view of Saudi Arabia and other countries in the Middle East, including a discussion how much trust can be placed in what these oil-producing countries say they can produce versus the reality of what they actually can produce. Orwel here provides essential information for the regular oil consumer, but especially important information for the potential investor.

As I have already mentioned, these were the two parts which most interested me and I think will be of interest to most general readers. Part Three, on the other hand, tends to be rather technical but will appeal to anyone involved currently in the financial markets or considering investments in the oil industry. Orwel provides much detailed data about the ins and outs and ups and downs of the oil market, more than I could internalize during just a general reading of the material. There are detailed charts and graphs which are used to argue that now may be the best time to invest in the oil industry and how to discover the most profitable opportunities. Investors will probably love all the figures and analyses he provides, while the casual reader may ignore them without any loss of content important to the ordinary consumer.

However, what I have said about Part Three of the book (that its main appeal will be with actual or potential investors) does have one exception. The first chapter of Part Three -- "Why and How Oil Prices Soared" -- may be of interest to the general reader but, again, it is a very detailed discussion and may require one (as it did me) to slow down a bit and even go over the material again. For those with the time and interest, however, Orwel's discussion of the topic is definitely worth the effort. He certainly provides an important explanation for the recent surge in oil prices which goes far beyond that provided to the ordinary consumer by the national news and the political pundits.

Generally, then, "Black Gold" can be read on two levels. First, Orwel offers the general reader an interesting and understandable discussion of the historical development of the oil industry, an analysis of past oil crises and the current issues which are impacting us now, and a look into the possible future surrounding oil exploration and production. Second, Orwel offers the investment community an in-depth analysis regarding the issues of supply and demand, provides a guide to the opportunities available to those currently holding oil investments and to those seeking to profit from investments in the oil industry, and discusses various types of investments from mutual funds to exchange-traded funds (ETFs), from SPACs, STARTs and hedge funds to superfunds and private equity.

The author certainly has impressive credentials. He is an oil analyst and writer for both the "Oil Daily" and "Petroleum Intelligence Weekly," with six years spent as a reporter on the oil market for "Dow Jones Newswires." He has also appeared many times on major news outlets such as CNN and National Public Radio. Orwell's book concludes with a section on "Fuel Facts" and a feature entitled "Some Questions to Test Your Energy Knowledge." It also includes a bibliography with notes and a comprehensive index. In conclusion, "Black Gold" is both practical and informative and an excellent read for both the general consumer and the interested investor.

Understand the Future of Energy
The subtitle of this book, "The New Frontier in Oil for Investors," would indicate this book is a guide to investing in oil. It is not. If you're looking for a manual that will tell you how to make gazillions of dollars from investments in the oil marketplace, keep looking. Black Gold does provide some good tips for investors, but few of those would be new to seasoned investors.

The real value of this book lies elsewhere: understanding the energy issues facing industrialized nations. This particular topic is one where the "ignorati" weigh in with various unfounded opinions and absurd suggestions--everything from suggesting Americans should boycott certain gas stations to assuming technology will provide new energy sources that make oil obsolete.

Orwel, unlike the "analytically-challenged" talking heads, very clearly presents the picture on the looming energy crisis. Is there really an energy crisis? Many "experts" assure us there is not. They point to alternative energy sources and say we have nothing to worry about because these sources are here now. All we have to do is switch over--no problem. Orwel dispels these notions by examining a few of these. For example, he points out that "We could line the Atlantic coast with windmills and still not make much of a dent in electricity demand."

Many experts who agree there is an energy crisis also say the easy solution is to simply extract more oil. They recommend such thing as drilling in ANWAR or expanding production in existing fields. The first recommendation ignores the realities of enormous lead times. The second one violates the principle of getting blood from a turnip. Even if we could do these things right now, they wouldn't fill the gap produced by projected demand in the near term.

Other experts say we need to conserve. They are correct, but we can't conserve enough to prevent ourselves from running out of oil in the relatively near future.

Orwel discusses how much oil we actually have, the problems in tapping into proven reserves, refining issues, and public policy problems that hamper any efforts to increase the oil supply. He also provides a detailed explanation regarding how most of the available oil is in politically unstable countries. A supply disruption is more likely than not, in the near future.

What about demand? Where has it all come from? Orwel tells us that, as well. But he is careful not to simply discuss the present drivers of supply and project a linear curve from there. He looks deeper, drawing on both historical data and emerging trends. By the time you get 50 pages into the book, it is fairly obvious that you don't need to read his biography to know he's an analyst, and a good one at that.

To me, this book is "required reading" for all people who have been surprised over the rise in gas pump prices in the last couple of years. For the rest of us, it helps us understand what's coming and how to prepare for it. From the book's subtitle we know the book will reveal some things about investment opportunities. But, it reveals so much more.