Insider Secrets

Insider Secrets

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

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Energy

  • Global Economic Fears Cast Long Dark Shadow On Oil Price Rebound

    After bouncing around, oil prices finished off the week with just a bit less volatility than when it started the week. WTI stayed at around $46 per barrel as of midday on September 4, with Brent holding at $50 per barrel. Aside from supply and demand fundamentals in the oil markets, central bank policymaking is another major factor determining the trajectory of oil prices. The European Central Bank hinted that it might consider more monetary stimulus to help the stagnant European economy. Oil prices rose on the news. The markets, however, are waiting on a much more significant announcement from…

  • This Is Why The Saudis Are Unlikely To Accept Any Production Cutback

    ‘Clack! cla-cla clack-clack clack-clack CLACK!!’ (today’s fanfare for Nonfarm Friday was played on football helmets to celebrate the start of college football season). It is the first Friday in September, which means we see official US employment data, aka nonfarm payrolls. Today’s report has showed 173,000 jobs were created in August, which was less than the expected 220,000, but has been offset by a drop in the unemployment rate to 5.1%. Given the market response, it believes this report is good enough to usher in an interest rate hike later in the month….and crude is heading lower. Elsewhere in the…

  • EIA On Board With Lifting U.S. Crude Export Ban

    A new report from the Energy Information Administration adds more weight to the notion that crude oil exports from the U.S. would not damage the economy. The EIA studied the prospect of oil exports in response to questions from Congress, and it builds on several prior reports completed by the agency over the past year and a half. The report is full of caveats and other drawbacks, but the headline takeaway could fuel political momentum to remove the export ban. According to the results, the EIA believes that if U.S. oil production remains below 10.6 million barrels per day through…

  • Not Everyone Is Happy About Egypt’s Latest Gas Discovery

    The Nile has been the source of life for the people of Egypt for all of recorded history. A blue stripe down the spine of Egypt’s desert terrain, one of the earliest civilizations known to man grew and prospered for centuries along its banks. But long before the first pharaoh, the Nile was laying the groundwork for a resource that would provide for her people today, one layer of organic material at a time. On Sunday, Ente Nazionale Idrocarburi S.p.A. (Eni), an Italian multinational oil and gas company, announced its discovery of a “super giant” natural gas field in the…

  • This Oil Major Hasn’t Lost Faith In Subsea Drilling

    Offshore drilling technology has progressed to the point where oil companies have the ability not only to drill miles underwater from surface platforms the size of football fields, but also to extract hydrocarbons from wells that sit on the seafloor, a branch of the industry known as subsea. Norwegian oil and gas major Statoil has been pursuing subsea technology since 1986 - it currently has 540 subsea wells that account for over half of its energy production - but Statoil is pushing the envelope further with plans to develop a subsea “factory” that performs all the functions of an offshore…

  • Could Waste To Energy Play A Key Role In U.S. Manufacturing?

    The waste-to-energy business has been steadily growing for a decade now, but recently BMW unveiled a new innovation in the industry. The car manufacturer powered forklifts at its car manufacturing facility in South Carolina with fuel cells produced from on-site biomethane gas from a nearby landfill. The point of the project was to demonstrate that using current technology, hydrogen of sufficient purity for use in fuel cells could be recovered from landfill gases. The Department of Energy is a big backer of the project as it offers several solutions to existing problems. First, by using fuel cells rather than conventional…

  • Russian Economy In Dire Straits As Chinese Demand For Oil & Gas Slows

    As opposed to the usual free-form structure, let’s do some painting by numbers to color in the backdrop for today’s market currents. Henceforth, five observations ahoy: 1) There is an interesting piece out this morning addressing the dichotomy seen within US shale producers, as some chose to hedge fairly aggressively in Q2, while some chose not to at all. While a similar volume of oil was hedged by the 30 largest publicly-listed producers at the end of Q2 as there was in Q1, 366 million barrels, some simply missed the opportunity to hedge at higher prices, and are less inclined…

  • Venezuela Delaying The Inevitable With $5 Billion From China

    Venezuela, a country in economic crisis because of the dramatic fall in oil prices, is seeking additional financial help from China this week. Venezuela is overwhelmingly dependent on oil for its economy, and the country’s budget has a breakeven price of well over $100 per barrel. In other words, the government had fiscal pressures even before the collapse of oil prices. With oil down around $46 per barrel, it is facing a veritable economic and financial crisis. Related: West Texas Fracker Uses Toilet Water To Cut Cost In the past, the government has been able to paper over its budget problems…

  • The Mirage Of An Iranian Oil Bonanza

    The P5+1 agreement with Iran on Iran’s nuclear program has generated (sometimes fevered) anticipation of an Iranian oil bonanza at the end of the nuclear agreement rainbow, both in terms of the increase in Iranian crude output and the business opportunities for foreign firms in driving the increase. The anticipation comes from several sources. Iran’s crude potential is one. According to the U.S. Energy Information Administration (EIA), Iran’s proven crude reserves, 158 billion barrels, are the world’s fourth largest (and among the cheapest to produce at $8-to-$17/barrel, depending on the source,). Iranian public statements expressing determination to increase crude output…

  • Financial Sector To Cut Credit Supply Lines For Oil And Gas Industry

    More U.S. oil and gas companies could come under financial distress in the coming months as crucial hedging protection begins to expire. Many companies had locked in high prices for their oil sales last year, allowing them a degree of protection as oil prices collapsed precipitously over the second half of 2014. Few, if any, hedged all of their production though, so revenues declined along with the oil price. Still, with some protection, the vast majority of companies (aside from a tragic handful) have not missed debt payments and have stayed out of bankruptcy. That could become an increasingly tricky…

Martin tiller