Insider Secrets

Insider Secrets

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

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Energy / Crude Oil

Articles and research looking into crude oil, whether it be exploration and refining - crude oil price movements or new crude oil extraction techniques. we have it covered here. Look at our energy section for more fossil fuel coverage.

  • In Spite Of Its Vast Oil Reserves, Cuba Fails To Woo Investors

    With the end of the 54-year U.S. trade embargo on Cuba, and Cuban government moves to encourage foreign investors, Cuba is a suddenly attractive venue that is sitting on an estimated 4.6 billion barrels of oil and promising tantalizingly low production costs that defy low oil prices. In December 2014, the U.S. lifted the trade embargo, and earlier that year—banking on an end to the embargo—Cuba began to lay the foundation for attracting foreign investment by offering corporate tax credits. It sounds great—but there has been no rush onto this playing field. Related: ISIS Forced To Cut Wages As Oil Revenues…

  • Middle Eastern Oil Companies To Capitalize On Oil Bust

    The oil and gas business is moving into a new age for financing. With groups like private equity becoming more prominent (just this week, PE-backed Terra Energy put down $910 million to acquire 200,000 acres in the Piceance Basin of the western U.S.). But two new deals in the last few days suggest that another unconventional source of petro-finance may be on the rise globally. The Middle East. Related: ISIS Forced To Cut Wages As Oil Revenues Tank On Tuesday, state-owned Qatar Petroleum made a big step-out from its home base. By acquiring a 30% interest in three deepwater licenses in…

  • The Hidden Agenda Behind Saudi Arabia’s Market Share Strategy

    Do the Saudis have an oil market strategy beyond pumping crude to defend their market share? Are they indifferent to which countries’ oil industries survive? Or, alternatively, are they targeting specific global competitors and specific national markets? Did they start with a particular strategy in November 2014 when Saudi Petroleum and Mineral Resources Minister Ali al-Naimi announced the new market share policy at the OPEC meeting in Vienna and are they sticking with it, or has their strategy evolved with the evolution of the global markets since? And, of course, what does the Saudi strategy beyond pumping crude portend for…

  • OPEC Will Not Blink First

    An OPEC production cut is unlikely until U.S. production declines by about another million barrels per day (mmbpd). OPEC won’t cut because it would accomplish nothing beyond a short-term increase in price. Carefully placed comments by OPEC and Russian oil ministers about the possibility of production cuts achieve almost the same price increase as an actual cut. Bad News About The Oil Over-Supply from IEA and EIA The International Energy Agency (IEA) and U.S. Energy Information Administration (EIA) shook the markets yesterday with news that the world’s over-supply of oil has gotten worse rather than better in recent months. IEA…

  • U.S. Rig Count In Free Fall: Plunges By 48 In One Week

    The U.S. rig count plunged this week, as the deleterious effects of the deeper fall in oil prices since December start to be felt. According to Baker Hughes, the U.S. rig count declined by a shocking 48 rigs for the week ending on February 5, the largest reduction since March of 2015. The total rig count now stands at 571, made up of 467 oil rigs and 104 natural gas rigs. The Permian Basin still accounts for the bulk of the active drilling rigs, with 180 as of this week. West Texas remains profitable to drill, at least in some…

  • Global Oil Production On Pause, But Decline Seems Imminent

    One hundred and seventy-six years after the birth of John Boyd Dunlop, and the crude complex is coming under pressure again. It is Nonfarm Friday, which means that the market is all a’flustered, digesting the soon-to-be-revised official monthly U.S. unemployment report. The report was fairly underwhelming from a headline perspective; only 151,000 jobs were created last month, versus an expectation of 190,000. That said, there was some solace to be found for those of a glass half-full persuasion, as not only did the unemployment rate tick to a new eight-year low of 4.9 percent, but average weekly hours worked ticked…

  • Non OPEC Oil Production To Collapse In 2016

    The IEA Oil Market Report, full issue, is now available to the public. Some interesting observations: Non-OPEC oil supplies are sharply lower in December. Overall supplies are estimated to have slipped by more than 0.6 mb/d from the month prior, to 57.4 mb/d. A seasonal decline in biofuel production, largely due to the Brazilian sugar cane harvest, of nearly 0.4 mb/d was the largest contributor to December’s drop. Production in Vietnam, Kazakhstan, Azerbaijan and the U.S. was also seen easing from both November’s level and compared with a year earlier. Persistently low production in Mexico and Yemen were other contributors…

  • Why U.S. Shale Is Not Capitulating Yet

    One of the great unknowns facing the U.S. shale industry, and threatening the recurring rumors of its imminent demise, is how it is possible that despite the collapsing number of oil wells, and despite the plunge in crude prices which supposedly are well below all-in shale production costs, does production not only refuse to decline, but in fact has been largely increasing in the past 6 months, with just a modest decline in recent weeks. (Click to enlarge)The answer may come as a surprise not only to industry pundits, but certainly to Saudi Arabia, whose entire strategy has been to…

  • Oil Majors Converging Here Could Mean A New Hotspot

    Even with oil at $30, the petroleum industry continues to see a few bright spots. Particularly when it comes to offshore activity — such as Shell this week announcing the first natural gas production from its ground-breaking Corrib field off the northwest coast of Ireland. And this week also saw another unexpected event in the offshore sector — halfway around the world in South America. That came in Uruguay. Where major European producer Statoil announced a surprise farm-in on one of the world’s up-and-coming exploration areas. Statoil said Monday that it will acquire a 15 percent interest in block 14,…

  • Japan And Iran Could Keep a Lid On Oil Price Rally

    Last week West Texas Intermediate rallied 4.62 percent and was up for the second week in a row. It is important to note that the price trend is still clearly negative. Recent history suggests that WTI might form a consolidation band between $30-$40 (spending the most time between $30-$35) for 3-5 months before dropping again. (Click to enlarge)Source Oil markets partially rose on the rumor of Russia and OPEC meeting to cut production, but the quickly-downplayed rumor wasn’t enough to lift WTI above a $34 close last Friday afternoon. In the presence of sluggish demand and a persisting supply glut,…

Martin tiller