The Globe and Mail reports in its Friday, June 27, edition that a CIBC WorldMarkets report, co-authored by Jeffrey Rubin, sees gasoline prices hitting $7(U.S.) in the next two years. The Globe's Greg Keenan writes that CIBC alsopredicts there will 10 million fewer cars on the road in the United States by2012. Mr. Rubin wrote that we can expect to see "the greatest mass exodus ofvehicles off America's highways in history." Mr. Rubin wrote together withco-author Benjamin Tal, "While some of the current weakness in vehicle sales canbe attributed to the economic slowdown, we estimate that highest gasoline priceshave had almost twice the effect." Basic laws of supply and demand are "nolonger operative" in the crude oil market, the report says, compelling CIBCeconomists to raise their target for West Texas Intermediate by $20 (U.S.) abarrel, to $150 (U.S.) next year, and by $50 (U.S.) a barrel by 2010, for $200(U.S.). "Higher oil prices spell stagflation for the U.S. economy next year,"Mr. Rubin wrote. The report also predicts that by late next year, gasoline salesin the United States will overtake grocery store spending as the largest item inhouseholds' non-vehicle retail spending.
IN MY HUMBLE OPINION
If any of the above statement is even close to being accurate... then I believe we can expect natural gas prices to climb higher as well as heating oil , diesel, gasoline , and hydro.
Ontario is also building new gas generated - electric generation plants to meet the needs of their growing population.
I would also expect Portrush Petroleum's Monthly Texas Cash Flow to increase as well and would expect their $60,000 per month could easily climb to $75,000 per month. This would result in a 25 % increase in yearly revenue to approximately just under a million dollars a year from their Texas operations.
If the project in Ontario is re-worked and Portrush is able to tap into the pinnacle gas reef that they expect is there, then we should will see share prices reflect the new values of much. more than just a million dollars a year.
