Insider Secrets

Insider Secrets

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

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Article Archive

  • OPEC’s No. 2 Under Serious Threat From Political Instability

    For weeks, large gatherings of protestors have roiled the political establishment in Iraq, forcing the government to scramble to address their concerns while also holding onto a dwindling sense of legitimacy in the eyes of the public. Political protests in Iraq have grown in strength and size, and over the weekend protestors burst through the walls of the Green Zone in Baghdad where many government buildings are located, and some even entered the parliament building. Hundreds chanted, waved Iraqi flags, and took photographs of an area of the city that they have long been prohibited from entering. The protests recalled…

  • China Looking To Secure Oil Supplies By Buying Stake In Rosneft

    Russian Deputy Energy Minister Alexei Teksler said a couple of weeks ago that Chinese state giant CNPC is interested in participating in the partial privatization of Russia’s top oil company, Rosneft. Rumors that companies from the Chinese energy sector will take part in the Kremlin’s privatization plan for 2016 first started emerging late last year when the plan was announced. Yet oil prices fell so low that there were doubts as to whether such a deal or deals are still viable. Related: Should Exxon Mobil Shareholders Be Worried About a Ratings Cut? Prices are now recovering and some analysts believe that…

  • Why Iran’s Shale Oil Discovery Won’t Add To The Glut

    Mohammad Reza Kamali, Director of the Center for Exploration and Production in Iran’s Oil Ministry, announced a new shale oil discovery in the Lorestan Province on April 25, compounding Iran’s shale discoveries of last year in the southeast Kerman and northern Semnan provinces. What is the significance of this discovery for Iran? Should Saudi Arabia worry about its arch rival after this new find? Will it affect the U.S. shale oil industry and worsen the existing supply glut in the world? Yes, and no. Significance for Iran Iran has 158 billion barrels of proven conventional oil reserves—the fourth largest in…

  • Low Oil Prices? Texas Is Doing Just Fine

    With the oil price crash now nearly two years in, there have been some obvious casualties. Dozens of oil related firms have declared bankruptcy, oil service firms have found rig counts collapsed, and thousands of jobs have been lost across the industry with many skilled employees reporting difficulty finding anything more than short-term contract work. Against this backdrop one might have expected a severe economic downturn in Texas, but instead the Lone Star State is holding up surprisingly well. Texas’ economy has long been thought of as being oil driven, but the reality is that the state’s situation is more…

  • Gazprom Wants to Turn Bahrain Into A Gas Hub

    Russian state-owned oil and gas giant Gazprom is currently working out the matter of creating a liquefied natural gas (LNG) distribution hub in Bahrain. The hub will be meant to intake LNG from various sources, including Russia. The news was announced by Saint Petersburg’s Regional Governor, Georgiy Poltavchenko, following a visit of the region’s delegation to Bahrain. Russia is currently negotiating the possibilities of LNG deliveries to the island nation in the Persian Gulf, with possible financing provided by Russia’s Vnesheconombank (VEB). The possibility of Russian independent natural gas producers has also been taken into consideration. Various instrument and equipment…

  • Halliburton-Baker Hughes Merger Officially Dead

    The blockbuster merger between the second and third largest oilfield services companies is now officially dead. On May 1, Halliburton and Baker Hughes announced the termination of the merger agreement, as the companies are unable to overcome the objections of federal antitrust regulators. “While both companies expected the proposed merger to result in compelling benefits to shareholders, customers and other stakeholders, challenges in obtaining remaining regulatory approvals and general industry conditions that severely damaged deal economics led to the conclusion that termination is the best course of action,” Dave Lesar, Chairman and Chief Executive Officer of Halliburton, said in a…

  • Oil Prices Edge Lower As OPEC Nears Record Output

    Forty-two years to the day after the filming of “Jaws” began (in Martha’s Vineyard, Massachusetts), and the bears are smelling blood in the water for a pullback (perhaps driven by this news from OPEC?). With certain countries closed for a bank holiday today (May day! May day!), here are five things to consider in the oil market: 1) With a new month on deck, we get a new onslaught of economic data, and specifically, global manufacturing data. China kicked things off over the weekend, with a below-consensus print on its official PMI manufacturing number, showing marginal expansion at 50.1 (down…

  • This Data Shows The Shale Debt Crisis Is Hitting Record Levels

    The bankruptcies are continuing fast and furious across the energy sector. With the ill-effects spreading beyond just the oil and gas business — evidenced by major renewables firm SunEdison filing for Chapter 11 last month. But the U.S. E&P sector still remains one of the biggest unknowns when it comes to bad loans. With numerous observers having recently warned about a big wave of defaults coming in this space. Related: Why Canada’s Oil Industry May Never Be the Same And a new data point late last week suggests we may be reaching a tipping point. That came from leading American investment…

  • Why China Is Really Dictating the Oil Supply Glut

    Ship tracking data from Bloomberg shows that 83 supertankers carrying around 166 million barrels of oil are headed to China, which has stockpiled an impressive 787,000 barrels a day in the first quarter of 2016—the highest stockpiling rate since 2014. While the world was speculating about oil prices plunging to $20 and $10 per barrel, China was busy stockpiling its reserves. The chart below shows an increase in imports as crude prices collapsed. Since the beginning of this year, China has imported a record quantity of oil. (Click to enlarge)Back in January 2015, Reuters had reported that China planned to…

  • The Merger That Could Create a New Oil Major

    At a time where many oil companies need to shed assets and spin off businesses to keep themselves alive, there are certain companies that are perfectly positioned for the current market. Oil prices have plummeted 70 percent from highs in June 2014 and not many upstream oil and gas operations are making money. Companies losing the least cash and maintaining the cleanest balance sheet can take advantage of the current market. The value of a large oil and gas company is partly in its ability to become the lowest cost producer and partly in its asset management ability. Some companies…

Martin tiller