Wednesday, January 16, 2008

The latest issue of Weiss Research Group's "Money and MarketsNewsletter"is an article by Sean Brodrick that talks about the new Indian-made Tata "Nano" automobile and the effect that ultra-cheap cars will have on the world...especially when it appears as if the world has hit "Peak Oil."

At the present time, India has 4 cars per 1,000 people; with a population of over 1.1 BILLION. The $2,500 car is going to massively effect transportation and fuel consumption within India.

China has a similar situation currently putting 14,000 new cars on the road EVERY DAY!

Meanwhile, oil production has slowed due to the draining of the reserves. For instance, Mexico's Canterell Oilfield (one of the world's largest) is not producing nearlywhat it used to, and in fact now Mexico is facing becoming and oil IMPORTER instead of Exporter in approximately eight years. The past three years have seen a 40% decline in oil production at the Canterell Oilfield.

This decline in production is occurring in more places than just Mexico, it is becoming a global crisis frequently referred to as "Peak Oil."

The oil companies stand to make much more money as the prices increase. Investors would do well to invest in the oil sector during these changing times.

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