Black Gold

There's a great bit of chatter this morning about getting oil closer to home. There is also a ton of talk about the "Oil Peak", which is the idea posed by a few that the world has seen or is currently seeing the most oil production ever on this planet, and supply will only decline from here. Since it takes the earth millions of years to produce it naturally, this is a good possibility. Therefore, in response, there are several companies moving to find it in previously ignored places. Saudi Arabia is believed by many to be inflating its reserve claims by several million barrels for fear that prices will drop.

BP came out today backing off of any 'green' energy sourcing outside of oil, and says the company will be going after oil sands in Canada. This is interesting since it has been proven that oil in the sands and shale is harder to get, is a lesser quality oil, and will cost more to refine. This big move by major players in the oil industry tells me the easy oil is going to be unavailable soon.

This brings me to my jewel of the last few months. Petro-Canada (PCZ) is a bigger player in Canada in both oil and natural gas (another commodity getting chatter) and I've been playing options on this thing for a while. I got in this morning after hearing more rumors and picked up another two options that have already gained 50% in two hours trading time. Good stuff. If only they could all be Black Gold like my little PCZ.