Insider Secrets

Insider Secrets

Learn how the PROs are making money from the oil and energy market.

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Energy

  • Genel Producing Oil For $1 Barrel, Investors Still Cautious

    In the oil patch today, it is indeed the survival of the fittest. So when one of the largest producers in Iraqi Kurdistan, Genel Energy Plc, comes out swinging with production costs as low as $1 per barrel, it inspires a new confidence that may or may not be sustainable given the regional security threats and the difficulties producers are having getting paid for their oil. Still, it’s an impressive number that renders Kurdistan one of the cheapest oil venues on the planet. Fall in Genel vs Crude Oil (Click to enlarge)With such low production costs, one would assume that…

  • Tesla Falling Out Of Favor With Investors

    Elon Musk is a genius and a visionary who is almost single handedly changing the future of mankind through three different industries at once. With that said, it’s not clear if investors can easily benefit from any of that. Tesla, the company most associated with Musk is in a downward stock spiral over the last month which has taken it to new 52 week lows. There are many reasons for that downward spiral including concerns about market valuations and weak oil prices (which make Tesla’s correspondingly less attractive as a substitute versus conventional cars). But for the first time, Tesla…

  • Despite Huge Losses Oil Companies Reluctant To Shut In Production

    As energy investors look for reasons to be optimistic, many are keeping close tabs on supply figures. There are some signs that supply is taking a hit from disparate parts of the globe. According to Bloomberg, China might see its output dip by 3 to 5 percent in 2016, down from a record high of 4.3 million barrels per day (mb/d) last year. If that occurs, it would be the largest drop since at least the early 1990s and the first decline in seven years. China’s oil production does not get nearly as much press as its consumption figures do,…

  • Defending Gazprom’s Market Share Will Cost $25 Billion

    2015 actually wasn’t all that bad for Gazprom. The giant state gas company posted strong European delivery figures and it saw sizeable growth in both net sales and profit. Of course, for Gazprom, ‘bad’ – as a subjective and cursory metric of appraisal – has an entirely different meaning than it did, say a decade ago, when the company’s market valuation was more than $320 billion higher than it is today. Between the lines, Gazprom’s reliance on Europe has probably never been greater and the broader state of Russia’s economy looms large. To be sure, Gazprom has market-moving capabilities, but…

  • Conventional And Vertical Well Analysis

    Most of our attention during the past 18-months of sliding oil prices has been on the impact on US unconventional operations, and for good reason. The very technological advancement that brings future energy security to our beck and call has a very specific price: cash money. For all the efficiencies that a modern pad-drill operation adds to the equation, each well drilled and zipper-fracked costs a not insubstantial amount of money. And even with the 30 percent cost reduction at the expense of oilfield service providers to do those frack-jobs, operators are still having to pay 70 percent of a…

  • Alberta Holds Back On Royalty Hike For Oil Industry

    Call it the new era of reverse negatives. It’s not that the Alberta government did something good as much as it didn’t do something bad. The NDP’s long-awaited royalty review was released January 29 and depending upon where the final royalty curves end up (the future royalty rates for oil, natural gas and natural gas liquids were not released and have yet to be determined), the outcome for the oilfield services sector (OFS) could be neutral to positive. Again, it’s not so much this is good news. It was already announced the royalty regime would not change in 2016. Nor…

  • We Might Be Closer To A Bull Market Than You May Think

    It’s been a horrible run for oil and oil stocks. But, dare I say it; there are finally some tangible signals of a workable long-term bottom forming in oil – and a further longer-term bull market in oil that’s brewing with it. Look, there’s no one left who is ready to believe that oil can ever rally substantially again. But I know it must – we cannot get oil from all of the newest, most important sources of oil in the deep oceans and oil sands, as well as from most shale resources here in the U.S. for $30 a…

  • A Significant Fundamental Shift for Oil Amongst All of the Noise

    It has been another wild week for those of us that track and trade the oil market. It started with a two day decline of nearly 15 percent and then over the next two days oil futures recovered almost all of that before turning tale again on Thursday afternoon. Given the degree of volatility we have experienced since the start of the year it is tempting to look at this week of just more of the same, but there is a difference. One fundamental thing changed this week that has shifted the long term outlook and it came from outside…

  • Oil Price Slump Takes Its Toll On Emerging Markets

    Friday, February 5, 2016 In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers. Let’s take a look. 1. Spending and dividends exceed cash flow   (Click to enlarge) - BP reported a $6.5 billion net loss for 2015, and announced another 3,000 job cuts. It was the worst result in decades for the British oil giant. - Worrying for the company is the fact…

  • Global Energy Advisory February 5th 2016

    Politics, Geopolitics & Conflict Report • Yemen: Fighters from al-Qaeda in the Arabian Peninsula (AQAP) have retaken the Yemeni town of Azzan in the Shabwa province after a several year hiatus. They were forced out in 2012 by tribesman loyal to the Yemeni president, and reportedly retook the town this week with little to no resistance. That there was no resistance speaks volumes as to the destabilization of Yemen amid the proxy war being fought here between Iran and Saudi Arabia. This destabilization will backfire on Saudi Arabia, which shares a border with Yemen. The Saudis are fighting the Shi’ite…

Martin tiller