Objective & Rationale

Our Objective

To seek long term capital growth by investing in small and medium sized UK and overseas oil and gas quoted companies which have oil deposits that are likely to be expanded and/or are engaged in exploration and development in promising areas.

Why Invest in Oil?

The era of abundant cheap oil is at an end. As Dick Cheney, the Vice-President of the United States, said when he was chairman of Haliburton Oil, There will be an average of 2% annual growth in global oil demand over the years ahead, along with, conservatively, a 3% natural decline in production from existing reserves. That means by 2010 we will need in the order of an additional 50 million barrels a day. This is equivalent to more than six Saudi Arabias of today’s size.

Dr Colin Campbell said in his report, The World Oil Supply 1930-2050, “There is only so much crude oil in the world, and the industry has found about 90% of it.” Professor Goldman of the California Institute of Technology summed it up when he said “Better to believe in the tooth fairy than in future supply of new sources of oil. Most of the planet has been explored extensively, and even if some new fields are found, they won’t delay the peak by more than a few years.”