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"I have also liquidated my positions in steel."


I think steel has a long way to go. One of the reasons I became interested in steel is that it is going to take a huge amount of steel to build the infrastructure necessary to bring the cost of energy down.

I am thinking of all the oil rigs, nuclear power plants, ships, bridges, buildings, electrical and cell towers.....all require steel. I was a bit late in seeing it but the steel play is also the China play...it is one and the same.

I think I am starting to get a bit better in investing because I saw GSI immediately for the potential and I got a quick 46% gain which is hopefully just the beginning. I am hoping GSI drops back a bit so I can buy more.

I have done a lot....I mean a whole lot of research on the topic of energy. It is going to be quite difficult to work our way out of the box we find ourselves in.

People fail to understand that the easy oil has been found

I used to work in the Gulf of Mexico on oilfield supply boats in 1985 right before the price of oil had the bottom fall out and left Southern Louisiana and Texas looking like a Ghost town....I must know every rinky dink town in Southern Louisiana...Venice, Intracoastal City, Abbevile, Larose, Fourchon, Houma, Morgan City and how about the infamous speed trap Golden Meadows http://www.topix.com/city/golden-meadow-la/2008/04/louisiana...

Back in 1985 it was easy to drive the price of oil back down because we had over 20 years of easy oil left.....but our easy oil is gone.....probably to never return...Increasingly the extraction of oil and gas will cost more and more.

I really think everyone should really get a good look at what it takes to get a barrel of oil out of the ground...It is pretty intense and very dangerous...the technology is extreme and on the cutting edge.

Did I say dangerous??? I don't know about you but you have to pay up to get me to do that job. I am thinking seriously about working in the oil patch again and sorry you gas guzzlers you will have to pay up for me to put myself in this type of situation:

http://www.oilrigdisasters.co.uk/
http://www.abc.net.au/news/stories/2007/10/25/2070625.htm
http://archives.cnn.com/2001/WORLD/americas/03/20/oil.accide...
http://home.versatel.nl/the_sims/rig/i-fatal.htm


Here is a article that discusses a huge problem with the price of oil...the refining process:

http://memrieconomicblog.org/bin/content.cgi?article=185

The world's refining capacity will have to increase...especially Heavy Crude refining. What will all of that take??? Lots of steel....Also a few companies like CBI might benefit from increased building of refineries too.

I even heard that the Saudis, Indians and others want to build many huge refineries outside the USA since the USA wants to play NIMBY:

http://www.gulfoilandgas.com/webpro1/MAIN/Mainnews.asp?id=29...
http://www.post-gazette.com/pg/06241/717209-28.stm
http://thecabledirectory.wordpress.com/2007/06/14/saudi-aram...
http://www.ameinfo.com/118997.html


and how about South Korea?? Why is Buffett interested in S. Korea??...maybe because of reasons like this:

http://www.koreatimes.co.kr/www/news/special/2008/06/139_250...


While there will be ups and downs, I agree with Jimmy Rogers who is probably the most knowledgeable investor worldwide that I am aware of....the commodity bull market is going to last awhile.....


http://www.investorazzi.com/2008/06/06/jim-rogers-says-commo...






Rob S
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