Insider Secrets

Insider Secrets

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

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Energy / Natural Gas

  • This LNG Player Could Leave Lumbering Competitors In The Dust

    US companies have been scrambling over the past few years to build new export terminals for liquefied natural gas (LNG). But just as the first is nearing completion, one company wants to forgo the onshore liquefaction concept altogether and move offshore. The US is nearing the point when it will start exporting natural gas, which Bloomberg says will “change the global LNG market forever.” US LNG could undermine the practice – particularly in Asia – where supply deals are sealed with long-term contracts linked to the price of oil. More LNG shipped abroad will bring down LNG prices in Europe…

  • Natural Gas Prices Here Are Set To Rise 72%... Overnight

    Investor interest in North American natural gas has waned the last few years. Spurred by low prices for the commodity across the U.S. and Canada.But it's critical to remember this isn't the only natgas market on Earth.Elsewhere, natgas prices are looking solid. Especially in one country this week, where new government legislation is coming together cause a big rise nearly instantly.Related: OPEC Struggling To Keep Up The Pace In Oil Price WarThat's India. Where officials are set to unveil rules that will allow market pricing for natural gas produced from some fields around the country, according to local press reports quoting…

  • Why Shale Gas Producers Could Rebound First

    The plunge in oil prices has a lot of the investment community heavily divided between those who see opportunity in US unconventional oil producers and those that see fracking as an unprofitable way to produce oil.Interestingly though, very few people are levying similar criticisms against natural gas producers. David Einhorn, whose tirade against Pioneer Natural Resources made headlines recently, excoriated the business of fracking. But Einhorn explicitly exempted natural gas producers from his attack, instead referring to natural gas producers as low cost leaders.That is because shale gas producers have been here before. Natural gas prices plummeted years ago and…

  • Canadian LNG Export Future Delayed, But Not Dead Yet

    As the Lax Kw’alaams community rejected a $1 billion offer from Pacific NorthWest LNG as compensation for a proposed natural gas project this week, the global energy community took notice. With the native tribe turning down such an enormous sum of money, the rejection could put a chill on Canada’s energy investment prospects. Worse, it also raised the possibility that Canada would be shut out of the vast Asian markets that it needs to offload the natural gas the United States no longer wants. But the reality is more nuanced than that.Community engagement has become far more important for oil…

  • Russian Gas: There Is No Alternative For Europe

     The sanctions are now in their second year; the ruble is still not quite itself; and national champions Gazprom and Rosneft are both bracing for what can generously be called a down year. Still, while Russia’s political relationship with the west continues to be redefined, the broader element of codependence remains relatively unchanged – though its worth is hotly disputed. Nowhere is that dispute more pronounced than in the energy sector. To be sure, Gazprom is in trouble. Last year, the gas giant saw its profits fall 70 percent to $3.3 billion. Through the first three quarters of 2014, Gazprom…

  • Petronas Hoping To Buy First Nations Tribes’ Support For $1 Billion

    Petronas is willing to pony up nearly $1 billion to secure the support of First Nations tribes in western Canada for its natural gas export project. The Malaysian state-owned oil company is offering C$1.15 billion (USD$950 million) to the Lax Kw’alaams tribe in order to build an LNG export facility at the Prince Rupert port.The offer would consist of annual payments over 40 years. For example, Petronas would pay over $12 million in the first year, with payments rising by 1 to 5 percent annually (depending on production), culminating in a $50 million payment in the 40th year. Also, tribe…

  • Major Nat Gas Opportunity Right On Europe’s Doorstep

    IntroductionThere has been a lot of ink spilled on the energy relationship between Russia and Europe. Russia is, after all, Europe’s top supplier of natural gas.But it is not the only source of natural gas. Just across the Mediterranean is a country that often doesn’t make it into the headlines, but one that the European Union could not do without. That country is Algeria. Algeria is Europe’s third largest supplier of natural gas, and those flows could continue to rise into the future.Consider this: Algeria has the third largest estimated reserves of shale gas in the world (after China and…

  • Range Resources Expects Natural Gas Glut To Even Out By Year End

    Range Resources (RRC) held its quarterly conference call earlier today. Before going into this, we have in the past highlighted the obsession on supply side of NatGas while ignoring the demand side. According to CIBC, days of supply have been falling, not rising, despite the oversupply concern as this captures the uplift in demand. This is a result of higher demand from electricity power generation (tied to coal switching) somewhat offset by lower residential demand (tied to solar and efficiency gains in our view).Related: Why The US Should Worry About Oil Sector JobsWhat’s most interesting in RRC’s EPS presentation is that,…

  • AGL Resources (GAS) is A Risk Worth Taking

    When the price of oil was in freefall it understandably captured a lot of attention. The same fate befalling natural gas, however, was of less interest to most media outlets. In many ways that is understandable; the price of natural gas has a much less direct effect on the vast majority of consumers than that of oil, so stories about it don’t drive ratings. The fact is, though, that the decline in natural gas prices was, if anything, more spectacular.When oil was in full decline from September to December of last year natural gas prices held up pretty well, supported…

  • An Unlikely Winner Of The Ukraine-Gazprom Row

    With the help of Ukrainian tycoon Dmitry Firtash, Turkmenistan,that unsung gas giant that boasts the world’s fourth largest reserves, could very be the clincher in securing Ukraine’s energy security. During a meeting with Turkmen Deputy Prime Minister Rashid Meredov on March 27, Ukrainian President Petro Poroshenko sent a shot across the bow to Moscow by expressing his desire to resume Turkmen gas imports as an alternative source to Gazprom’s dominance. Poroshenko essentially hinted at a nifty gas deal sealed back in 2006 by Dmitry Firtash’s RosUkrEnergo (RUE), whereby Ukraine imported 40 billion cubic meters of gas from Turkmenistan and Kazakhstan…