Last week I made my final contribution to my Roth IRA for 2008. So we’ve contributed all we can to both my wife and I’s personal retirement accounts.  This is on top of our individual company sponsored retirement plans.

I’m happy to say that we’ve managed to fulfill this goal about 6 months early this year, which gives us time to start saving for next years $10,000+ contribution limits.

(Starting in 2009, the Roth IRA contribution limits will be indexed to inflation.)

So now I have to figure out where to stash the money for the next six months.  I’m leaning towards the Emigrant Direct account, since they increased the APY to 3%.

An Iranian OPEC official on Saturday mentioned that OPEC members are trying to decide whether to cut output to “shore up” market prices for crude oil.

“The market is oversupplied by at least 1 million barrels a day. If OPEC would like to remove this additional oil out of the market, then OPEC has to cut some production,” OPEC governor Mohammad Ali Khatibi told Dow Jones in a telephone interview. -Source

Oversupplied by only 1 million bbls per day?  Is that all?

Perhaps they should wait to see what demand looks like after China restarts manufacturing operations after the closing of the Olympics.  As I mentioned in a previous post, China had shut down manufacturing in an effort to reduce pollution in preparation for the games back at the beginning of July.  Right about the time crude prices started to slide.

For the last couple weeks I’ve been sitting on the sidelines trying to figure out how to play my hand in the market. There appears to be some semblance of rationality forming, but I think there are going to be new fundamentals arise that continue to beat back the bulls.

Crude oil ($wtic: chart) prices continue to drop, closing out the week under $114 per barrel, and natural gas ($natgas: chart) is maintaining ground just above $8 per MCF. Oil prices have dropped based on waning global demand, and natural gas prices have moderated for the same reason, just on a National scale.

On the topic of global demand, I have to wonder if the Chinese curtailment of demand during the 2008 Olympics has anything to do with the current oil market. Back in February, Beijing made the decision to halt manufacturing production in several locations during the Olympics in an effort to reduce pollution.

They also implemented an effort to remove 50 million cars from the roads for the same reason. According to the source, all of this was supposed to take place a month prior to the opening ceremonies in Beijing.

When did the price of crude start to retract? About 30 days prior to the opening ceremonies.

It’s just a theory right now, but I have to wonder if “global” demand will pick up after the closing ceremonies.

Time will tell.

Today I noticed that the Emigrant Direct online savings rate is now an even 3%. So it appears that rates may be on the rebound for those of us who are stashing cash away for a rainy day.

To be honest, I’m not really sure what to think of T. Boone Picken’s “plan”.  He’s been showing up fairly frequently on T.V. as of late pushing his plan for energy independence.

A noble cause, to be sure, and I don’t think he’s too far out of line here.  At least on the surface.  But look a little bit deeper.

Mr. Pickens is a business man at heart and he’s certainly done well for himself as an oil man.  Now he’s looking to capitalize on the alternative energy push.

Why does he want you to buy into his plan?  Because he’s got a ton of his own money dumped into wind energy.  And I’m talking billions of dollars going towards wind farm development in Texas.  Then there’s drilling for water in West Texas and shipping it to Dallas via pipeline, all funded by, you guessed it, Pickens himself.  So the real incentive for Pickens plan is to make money.  Naturally.

If he can get you on board, he certainly reaps the benefits.

As I mentioned, PickensPlan (on the surface) is a good step in the right direction, and we can all certainly benefit if we gain an independence from foreign oil.  However, all you have to do is follow the money to find the true incentive behind the message.

Of course, this should all sound eerily familiar.  Remember Sir Al Gore, Nobel Prize winner?

I believe his message went something like this:  Man has caused global warming, global warming is melting the ice caps, will flood the shorelines and cause drought and famine all across the world…

And oh by the way, be sure to see my movie on this topic, buy carbon credits from my company, and try and look past the fact that I consume more energy in one month than you do in seventeen…

If you don’t watch television, you may not know Randy Pausch.  If that’s the case, let me introduce you.

Randy Pausch was a computer science professor at Carnegie Mellon University who was diagnosed with pancreatic cancer in August of 2006.  One year later the cancer had moved into his liver and spleen, which meant the cancer was terminal.

As part of an ongoing lecture series, top professors are asked to impart some advice and knowledge upon the world as though it was their last chance to do so.

Randy gave his last lecture, entitled “Really Achieving Your Childhood Dreams” on September 18, 2007.  For him, however, it really was his last lecture, as he had been given three to six months to live.

Randy’s lecture inspired many, but even beyond his lecture, he truly influenced the world.

Randy passed away last Friday, July 25th at his home in Virginia, surrounded by his wife and three children.

With that, I offer you Randy’s Last Lecture:

“We cannot change the cards we are dealt, just how we play the hand.” -Randy Pausch.

Below, the Wall Street Journal’s Jeffrey Zaslow remembers a man who inspired so many with a lasting final lecture and a best-selling book.

Would you be proud of your final lecture?

Additional Resources:

Carnegie Mellon’s news story on Randy Pausch’s passing

Carnegie Mellon: In Memoriam, Randy Pausch

Buy the book: The Last Lecture

It’s been a while since I posted anything regarding my investment activities, mostly out of lack of information to report on. I’ve been buying more shares of PVX (PVX: chart, web, Y!) recently, but more significantly, there is some good news on Duncan Energy Partners (DEP: chart, web, Y!).

Second quarter results are out, and things are looking strong. A few snippets:

• The partnership reported a 45 percent increase in net income to $6.6 million for the second quarter of 2008, compared to net income of $4.5 million for the second quarter of 2007.
• Distributable cash flow increased 65 percent to $10.8 million in the second quarter of 2008 from $6.6 million in the second quarter of 2007.
• On July 16, 2008, the board of directors of DEP’s general partner approved an increase in the partnership’s quarterly cash distribution rate paid to partners in respect of the second quarter of 2008 to $0.42 per common unit, or $1.68 per unit on an annualized basis.
• Revenue increased 52 percent to $360.4 million for the second quarter of 2008 from $236.9 million for the second quarter of 2007.
• Gross operating margin for the second quarter of 2008 decreased to $18.7 million from $21.5 million reported in the second quarter of 2007.

Overall I think these are good results, and definitely a sign of strength.

DEP stock has been battered down due to big money fleeing income funds, primarily from the likes of Goldman Sachs.  The company is paying out a 10% return, on growing revenues.

The only down side I see to the report is margin compression, which is to be expected in today’s environment.  The cost of doing business is going up, just like everywhere else.

Another Drew Carey Reason.tv video on the true cost of the wall between the Southern United States and Mexico.

Personally, I believe the most effective way to secure our boarder is to economically secure our boarder.  Creating jobs in Mexico, and promoting and stimulating the Mexican economy will shore up the boarders more effectively than a wall.

However, we must enforce the laws of our country, and ensure the security of our great nation.

Yesterday the White House and the Federal Reserve took steps to prevent Fannie Mae and Freddie Mac from going the way of the Bear. Bear Stearns, that is.

Treasury Secretary Henry Paulson said the “global reach of Fannie and Freddie necessitated unprecedented action”. In other words, the government believes that Fannie May and Freddie Mac are too big to fail. Must be nice.

Technically, the treasury increased its existing line of credit to Fannie and Freddie. On top of that, the treasury was given the power to buy the two companies stock.

Wow.

So much for a free market economy!

So I suppose the question is, how much of my Federal tax dollars are going to be thrown after poorly managed financial institutions?

I’ve always been a big fan of Drew Carey, and I thought this interview with Michael Eisner was interesting.  Actually, I enjoy most of the interview on “Conversations”.