Morgan Stanley estimates there are trillions of petrodollars left in the pipeline
By Richard Blackden
Last Updated: 7:31am GMT 26/02/2008
The surge in the price of oil is set to unleash a tsunami of petrodollars onto financial markets, according to Morgan Stanley.
With the price of crude oil skirting the $100-a-barrel mark, strategists at the investment bank reckon as much as $2 trillion of petrodollars earned by the world’s oil exporters will need to be invested this year.
Many analysts expect oil, which first touched the historic $100 a mark in January and then closed above the level for the first time this month, to remain at lofty levels this year as a combination of higher demand from fast-growing economies such as China and dwindling supply leaves refineries struggling to produce sufficient oil.
Petrodollars are “big, and getting bigger,” according to Morgan Stanley’s Stephen Jen.
While Mr Jen estimates that oil exporters, particularly the Gulf states, will choose to spend about 10pc of the petrodollars upgrading their infrastructure, “a tsunami is coming.”
Opec has faced calls from the US government as well as the International Energy Agency to ease the upward pressure on prices by lifting production – a move rejected when the cartel met in Riyadh in Saudi Arabia last November.
advertisementAt $100 a barrel, Morgan Stanley estimates that the value of the world’s proven oil reserves stands at $121 trillion.
That compares with Russia’s gross domestic product of $1.2 trillion, Britain at $2.7 trillion and the US at $14 trillion.
Mr Jen writes “The financial arguments for transforming underground oil wealth into above-ground financial wealth are quite compelling.”
Crude oil was little changed at $98 in late trading on the New York Mercantile Exchange.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/26/bcnpetro126.xml
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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