MENA, MONEY & MOJO: Insights from Tom Kloza, Chief Oil Analyst, OPIS

1. www.opisnet.com • tkloza@opisnet.com

2. $ $ $ $ $ MENA, MONEY & MOJO Presented byTom Kloza, Chief Oil Analyst, OPIS

3. "Political Correctness is a doctrine fostered by a delusional minority and by the mainstream media which holds forth the proposition that it is entirely possible to pick up a turd by the clean end."

9. Why I’m Mad at George Clooney Glibido Petrosclerosis Petronoia Pysteria

10. PEE-AT-THE-PUMP

11. Golden Gasoline: Use Your Pee for Fuel A recent scientific advancement could see to it that a routine "pit stop" might someday kill two birds with one stone. Think about it - on long road trips you stop at gas stations to do what two things? Empty your bladder and fill your tank. One U.S. chemist has discovered a way for the two needs to come together in an efficient union. A new catalyst has the ability to extract hydrogen from your very own liquid gold.

12. Change Is Not Always Subtle

16. The Yin & Yang Of Crude

17. Money is the biggest fundamental • The crude oil futures & options market is now many times the size it was when we marched off to the Iraqi War. It has increased exponentially in the last 20 years. • Some of that money is speculative, like the “Dukes” in Trading Places, but some of it is very passive and very patient. • Producers and refiners are the normal circuit breakers, but for now, many are foregoing a “hedging strategy”. • Money isn’t just shaping oil prices. It is shaping every commodity, particularly those that can be moved internationally and represent a bet on China.

18. Follow the Money- Crude

19. Follow the Money- Gasoline

20. Follow the Money- Distillate

21. Inaccurate Measurements 2010

22. Investment Banks Traditional View of Oil Futures

23. Spare Capacity Falling, Untenable by YE 2013

24. Gasoline Spending

25. The Truth About Pump Prices

31. Investment Banks Remain Bullish, But Not Every Picture Comes Out The Way You Want It To

32. Some Points to Ponder

33. Will Electric Vehicles Really Replace the combustible engine? Source: General Motors

34. Some Predictions • 2011 should be front end-loaded. China cool-down; might take an “event” to light a fire for gasoline in the second half of the year. But beware 4Q2011/1Q2012!!! • Plenty of refining capacity, but “margin management” overlaps with turnarounds. More than 2-million b/d of additional worldwide refining comes on board in the next year. • Demand destruction was arrested in June. America can survive episodic visits to $3.75-$4 gal, but what about fatigue? July numbers soft spot or beginning of R? • Expect extremes this decade. • Financial market “spanking” changes the entire paradigm. But no curbs mean apocalyptic spike this decade.

35. Will Oil Markets Age Gracefully?

40. Everyone Views The World From Their Own Unique Perspective

41. The U.S. According To Texans O P R A mobsters

42. My View Of My Home State 

43. Try Not To Generalize The View Abroad

44. Warning -- There is News And There Is Propaganda

46. U.S. Business Al-Jazeera

47. Sovereign Debt Default Chinese Woes Equities Slump Technological Breakthroughs Dollar Rally Consumer Confidence Additional Fuel Tax Alternative Fuel Mandates Position Limits

48. More Predictions No obvious pivot points in next 100 days. Markets may be event-driven and summer doesn’t typically deliver events. Without hurricanes, gasoline prices should weaken in September. But expect a robust rally from December through April. Futures outperform wet markets. U.S. refining is in clear surplus - -particularly coastal regions. But refining is not nearly as desperate as Wall Street makes it out to be. Inland refineries have huge cost advantages . . . For now.

49. Definite U.S. Gasoline & Diesel Price Point This Half Decade

50. One Certain Path . . . .