This analysis is from Evan Smith and Brian Hicks, co-managers of the Global Resources Fund (PSPFX). Oil prices have bounced more than 150 percent off of December 2008 lows but inventory levels remain at historically high levels despite a healing global economy. However, Goldman Sachs says robust 2010 oil demand growth will deplete these inventories over the next 12-to-18 months and diminishing production rates in key areas around the world will create a supply/demand imbalance. The above chart shows the decline in production from the worldrsquo;s top 230 projects. After peaking in 2009, production from these projects is set to fall for the next several years. Excluding OPEC countries (right chart), the decline rates quadruple from 2007 to 2012 (est). Over that time period, non-OPEC production is expected to fall by 2.5 million barrels per day. Only Brazil, Canada and the former countries of the Soviet Union are expected to see production growth. One of ...

India is now approaching a per-capita GDP level that may prove to be a tipping point for economic growth and consumption. At $2,000 per person, Indiarsquo;s GDP is only a third of the way to the point at which oil consumption begins to rapidly increase, according to the energy industry consulting firm PIRA. India is, however, approaching another key level. When Chinarsquo;s per-capita GDP reached $3,000 in 2002, car sales more than tripled to 7 million vehicles by 2008, PIRA points out. Also important to Indiarsquo;s economic growth is its trade with other countries. The UBS chart above shows that Indiarsquo;s trade as a percentage of GDP is similar to where China was in 2002. But to have the same export-led growth seen in China over the past 10 years, India needs to improve in several areas. A good place to start would be to clear away some bureaucratic red tape to encourage private foreign ...

India is now approaching a per-capita GDP level that may prove to be a tipping point for economic growth and consumption. At $2,000 per person, Indiarsquo;s GDP is only a third of the way to the point at which oil consumption begins to rapidly increase, according to the energy industry consulting firm PIRA. India is, however, approaching another key level. When Chinarsquo;s per-capita GDP reached $3,000 in 2002, car sales more than tripled to 7 million vehicles by 2008, PIRA points out. Also important to Indiarsquo;s economic growth is its trade with other countries. The UBS chart above shows that Indiarsquo;s trade as a percentage of GDP is similar to where China was in 2002. But to have the same export-led growth seen in China over the past 10 years, India needs to improve in several areas. A good place to start would be to clear away some bureaucratic red tape to encourage private foreign ...