In May, Axial Vector Energy Corp. announced that its PETRO AVEC Joint Venture partner, Petrosonics LLC, recently received a Russian patent protecting the purification process that removes sulfur and nitrogen compounds from diesel oil, FCC cycle oil, FCC slurry oil, light/heavy gas oil and coker gas oil fractions. The patent will remain in effect for 20 years with the possibility of an additional five-year extension.

According to the U.S. Energy Information Administration, Russia has 41 oil refineries with a total crude oil processing capacity of 5.4 million bbl/d, and produces significant amounts of heavy fuel oil, middle distillates, and gasoline. Roughly 20.5% of Russia’s total diesel output is exported. However, their refineries need to modernize in order to meet Europe’s growing demand for low sulfur fuels.

Dr. Mazin Samman, lead PETRO AVEC licensing negotiator for Russia, stated, “Russian oil companies are prime licensing

Axial Vector Energy Corp. today announced that its PETRO AVEC Joint Venture partner, Petrosonics LLC, was awarded two Hong Kong Patents, resultant from the award of European Union patents 1 635 924 B1 and 1 668 095/04 781 388.6. The two patents protect the method by which sulfur and nitrogen bearing compounds are removed from diesel oil through the use of sonic energy and an oxidizing agent. They also protect a related process for the removal of the resultant oxidized sulfur and nitrogen contaminants.

Several oil and gas companies have based their operations in Hong Kong, including CNPC Hong Kong, China Resources Petroleum Company, Ltd., SS United Oil & Gas Company, the Hong Kong and China Gas Company and the Hong Kong Petrochemical Company. The Hong Kong Petrochemical Company plans to invest HK$40-60 billion in the construction of an oil refinery, oil tanks,

Axial Vector Energy Corporation announced this morning that its PETRO AVEC Joint Venture partner, Petrosonics LLC, was recently awarded a Russian patent that protects the process by which sulfur and nitrogen bearing compounds are removed from diesel oil, FCC cycle oil, FCC slurry oil, light gas oil, heavy gas oil and coker gas oil fractions, utilizing sonic energy and oxidation. According to the press release, the patent will remain in effect for two decades with the possibility of a five year extension.

According to the U.S. Energy Information Administration, Russia has 41 oil refineries with a total crude oil processing capacity of 5.4 million bbl/d. Russian refineries produce approximately 1.2 million bbl/d of Mazut (heavy fuel oil), 1.3 million bbl/d of middle distillates, and 815,000 bbl/d of gasoline, but require modernization to meet Europe’s growing demand for low sulfur fuels.

Dr. Mazin Samman, lead

China North East Petroleum Holdings, Limited, a leading oil producing company in Northern China, announced that it has signed a new well drilling contract with a local primary drilling company, Songyuan Huaying Drilling and Service Company.

The well drilling contract includes an additional 48 wells to be drilled over the next 10 months. According to the press release, the drilling work is scheduled to start within a week. After the project is completed, China North East Petroleum’s number of producing wells will total up to 303.

“Signing this additional well drilling contract further demonstrates the management’s confidence in the operational capabilities of the company. By continuing to expand our oil production capacity, together with ongoing efforts to increase production efficiency and minimize the operating expenses, we believe we can achieve sustainable growth and profitability during this challenging economic climate,” stated Mr. Hongjun Wang, President of China North East Petroleum.

Mr. Yanhai Gong, President

Oil and copper have been forming chart patterns that suggest a bottoming process for them.  That could be encouraging, in that oil and copper are important general economy inputs.

Consumption of oil and copper would precede the output of goods that utilize those commodities in their manufacture. That suggests the general concept that commodity prices should show recovery a bit before manufacturing shows share price increases, because the growth in sales and profits of manufacturing comes somewhat later in time

It is possible that the basing behavior is more a function of production cut backs or stockpiling than an indication of increased consumption.  China, for example, has announced plans to stockpile industrial raw materials now while prices are low for use later when prices are higher.

In any event, oil and copper are looking better.

click images to enlarge

West Texas Intermediate Crude

The chart shows oil testing key resistance.

The following paragraphs come from the latest newsletter by Nouriel Roubini’s RGE Monitor. The article provides a thought-provoking summary of the key issues facing the global economy.

“The financial wildfire has turned around the stagflationary trends seen earlier this year into a vicious cycle of global deflation in debt, assets, wages, and goods. Headline consumer inflation has peaked in most of the developed and emerging world, except in places where food/fuel subsidies were recently rolled back or post-Q3 data are still unavailable. According to the IMF’s October World Economic Outlook, the world’s average consumer prices have increased 6.2% y/y Q2 2008. JPMorgan expects world CPI inflation to slow to 2.6% y/y

Andrew Snyder says a rapidly unraveling economy means crude oil prices have further to fall. He recommends investing in the UltraShort Oil & Gas ProShares ETF (AMEX:DUG).

This from Today’s Financial News:

Thanks to fears of a strong global recession and larger-than-expected downturns in pivotal countries like China and India, crude prices are on the decline. Right now, a barrel of oil is selling for nearly half of what it did during its record-smashing peak just a few months ago.

But we have not seen anything yet. Crude prices will continue to fall. And if you invest accordingly, you can put some hefty profits in your pocket.

Earlier today, OPEC announced it has significantly reduced its oil-demand forecast. The group says it now believes the world will require 87.2 million barrels of oil each day next year, a decline of 450,000 barrels. It also announced its members will most likely cut production

Andrew Snyder says a rapidly unraveling economy means crude oil prices have further to fall. He recommends investing in the UltraShort Oil & Gas ProShares ETF (AMEX:DUG).

This from Today’s Financial News:

Thanks to fears of a strong global recession and larger-than-expected downturns in pivotal countries like China and India, crude prices are on the decline. Right now, a barrel of oil is selling for nearly half of what it did during its record-smashing peak just a few months ago.

But we have not seen anything yet. Crude prices will continue to fall. And if you invest accordingly, you can put some hefty profits in your pocket.

Earlier today, OPEC announced it has significantly reduced its oil-demand forecast. The group says it now believes the world will require 87.2 million barrels of oil each day next year, a decline of 450,000 barrels. It also announced its members will most likely cut production

Andrew Snyder says a rapidly unraveling economy means crude oil prices have further to fall. He recommends investing in the UltraShort Oil & Gas ProShares ETF (AMEX:DUG).

This from Today’s Financial News:

Thanks to fears of a strong global recession and larger-than-expected downturns in pivotal countries like China and India, crude prices are on the decline. Right now, a barrel of oil is selling for nearly half of what it did during its record-smashing peak just a few months ago.

But we have not seen anything yet. Crude prices will continue to fall. And if you invest accordingly, you can put some hefty profits in your pocket.

Earlier today, OPEC announced it has significantly reduced its oil-demand forecast. The group says it now believes the world will require 87.2 million barrels of oil each day next year, a decline of 450,000 barrels. It also announced its members will most likely cut production

A 200-percent increase in net income to $15 million is just one of the positives in a recently released financial forecast from China North East Petroleum Holdings, Ltd. (OTCBB: CNEH). The company, which explores and extracts oil resources in north east China, also estimates a 133% increase in oil production in 2008 to 623,000 barrels and a 217% increase in expected revenue to $62 million.

In addition, the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is expected to increase 224% to $41 million, or $1.70 per fully diluted share. For 2008, the estimated range for fully diluted earnings per share is 62¢ to 65¢ based on a share count of about 24 million shares.

Production figures are based on CNEH’s approved oil extraction contracts with PetroChina Jilin. These contracts allow the company to operate four oilfields within the Jilin Qian’an Oilfield, and an anticipated 240 oil producing wells by year-end