Insider Secrets

Insider Secrets

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

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Energy

  • Could WTI Trade At A Premium To Brent By Next Year?

    A flood of bearish news has pushed down oil prices to their lowest levels in months, with WTI nearing $45 per barrel and Brent flirting with sub-$50 territory.With a bear market back, there is pessimism throughout the oil markets. Goldman Sachs is even predicting oil stays at $50 through 2020, a profoundly grim view of the state of oil supplies.On the other hand, the contraction in U.S. shale is underway, so it is just a matter of time before the mismatch between supply and demand balances out.For several years, WTI, which tracks U.S. crude, has traded at a discount to…

  • An Unusual Potential Ally In The U.S. Shale Boom

    The shale boom that made the U.S. the world’s largest producer of oil and gas is about to come to halt as the U.S. shale sector is witnessing a series of defaults due to rising driller debts and expiring hedges.The collapse in oil prices has further added to the miseries of U.S. shale industry. In these difficult and testing times, there is something that might just give a breather to the U.S. shale industry and may even prolong the shale boom, and the innovation comes not from the field of engineering, but from microbiology.There are microbes that are believed to…

  • Campaign 2016: Where Are The Candidates On Energy?

    As the U.S. Presidential campaign starts its inevitable ramp up, one issue investors should consider is each candidate’s views on energy especially since energy policy has been consistently important in recent elections.For all of the talk about clean energy, the reality is that U.S. carbon dioxide emissions have come down primarily as a result of shale gas and oil displacing coal. Solar power is only just now getting to the point where it is cost effective versus conventional fossil fuels, and wind power is a bit further along, but still has a ways to go before it becomes a reliable…

  • US Oil Production Finally Starting to Decline

      (Click to enlarge) The Monthly Energy Review and the Petroleum Supply Monthly have US production peaking, so far, in March and April. The Petroleum Supply Weekly has US production peaking in June. In the chart above I have averaged the Petroleum Supply Weekly into monthly data. All data is in thousand barrels per day. Related: EIA Capitulates Under Cover Of Darkness(Click to enlarge)Here we have the weekly data from the Petroleum Supply Weekly. The last data point is July 24th. The huge jumps you see are basically just revisions. The huge jump you see for the week of May 22nd,…

  • Midweek Sector Update: August Off To A Shaky Start For Oil Markets

    August started off on a dour note for crude oil, with prices tanking by around 5 percent on August 3. A slew of negative news from around the world weighed on prices. The Greek stock market plummeted on the first day of trading after being closed for five weeks. The Athens Index dropped by 16 percent on August 3 and continued its descent as of midday trading on August 4. Concerns over the Chinese economy once again reared their head as the government moved to put restrictions on short selling to stop the collapse of the stock markets. WTI fell…

  • Against All Odds Resource Investment Is At Record Highs

    Many investors will be shocked at a new report this week. Showing that investment in the downtrodden natural resources sector is actually hitting record highs right now. Research firm Preqin, as covered by Law360, reported that resource-focused private equity funds have raised an incredible $28 billion so far in 2015. That lofty figure puts resource investors on pace to eclipse -- and likely crush -- the $30 billion that was raised during full-year 2013. Which currently stands as the highest-ever year for natural resource investment. Related: EIA Capitulates Under Cover Of Darkness The interesting thing is that this massive pool of…

  • Carbon Tax Could Be Fossil Fuel Industry Achilles’ Heel

    PV checks every box on the list of imperatives. It is cheap, there are no problems getting it financed (SolarCity will install panels on your roof for no money down), it is massively scalable, from a calculator or lamp post to a square mile in the desert, and it produces very few harmful side effects, though the manufacturing process has a degree of toxicity, especially if you are making cells from Cadmium. No other energy technology can make the same claims. Wind comes close but it does not scale down (i.e. small, single-dwelling units are more expensive per Watt) the…

  • Coal Mine Once Valued At $630 Million Sells For $1

     The following photos are from Australia's Isaac Plains coking-coal mine.Why is Isaac Plains relevant? Well, in 2011 at the height of the Australian mining boom, Japanese conglomerate Sumitomo thought it has spotted a bargain, and a SMH reports, it approached Tony Poli, the founder of mid-tier miner Aquila Resources with an offer: it would buy its 50% stake in Isaac Plains, at the time Aquila's only producing mine, for $430 million.Market participants thought Aquila's stake might fetch $300 million at best but Sumitomo was confident it would make a strong return, and offered almost 50% above fair value, especially since…

  • EPA’s Clean Power Plan Tougher Than Expected

    The Obama administration unveiled a much-anticipated, controversial rule on the regulation of greenhouse gases from power plants on August 3. The first-of-their-kind limits on carbon pollution from existing power plants will actually require slightly tougher cuts than the original proposal. The EPA is calling for a 32 percent reduction in greenhouse gas emissions from power plants below 2005 levels by 2030. That is up from the 30 percent target as part of last year’s proposal. However, the EPA did throw the industry, and its opponents in Congress, a bone. In the final rule, the Obama administration will allow for two…

  • Don't Expect An Oil Price Rebound This Side Of 2017

    As the price of oil starts its second dramatic act of the year, collapsing after a short-lived rebound in the Spring, many investors are undoubtedly hoping that the price will start to rise again later this year.Those hopes may be misplaced as Texas looks set to produce a record level of output this year, toppling a production record that has stood for more than thirty years. And Texas is not alone on that front. Around the world, many countries are reporting continuing or increasing production. OPEC looks to have pumped more oil in July than in June despite the fall…

Martin tiller