follow us like us subscribe contact us
Loading, please wait

Premium Article Archive

  • Winners And Losers Of $80 Oil, Part IV

    For the last few columns on winners and losers of $80 oil, I want to try and construct an investment strategy we can use for the duration of what I’m calling the $80 oil winter. There are definitely some positional moves that should be made in portfolios right now as stock indexes streak higher while most energy shares lag. We’ve seen capital expenditure cuts come from the big and small in energy, from Shell (RDS.A) to Conoco-Philips (COP) to Continental Resources (CLR) and Rosetta Resources (ROSE) to Halcon (HK). And despite the rosy spin that most of these companies have…

  • This Solar Company Keeps Reporting Losses But You May Want To Buy It Anyway

    We all know that logically we should assess the value and prospects of any stock based on the profitability and prospects of the company. That is investing 101, but sometimes other factors take over. In the case of SolarCity Corp (SCTY), buyers seem to be motivated by anything but profitability. The company has never made a profit since the IPO nearly two years ago, but even so, despite losing a lot of ground since the high back in February, SCTY is trading at over five times what it was then. The gut reaction of any value investor when looking at…

  • Mid-Sized Oil Companies Poised for Growth in West Africa

    Mid-Sized Oil Companies Poised for Growth in West Africa Introduction In 2013, the continent of Africa produced 9.3 million barrels per day (bpd), or about 10% of global supplies. Africa’s oil production is concentrated in a relatively few number of countries, namely, Nigeria (2.3 million bpd); Angola (1.8 million bpd); Algeria (1.7 million bpd); and Libya (production fluctuated, but averaged 0.98 million bpd). Those four countries account for somewhere between two-thirds and three-quarters of the continent’s oil output. Nevertheless, there are other countries that are starting to make waves in the oil sector. Many of them are located in West…

  • Global Energy Advisory – 21st November 2014

    Politics, Geopolitics and Conflict Under fire from the Islamic State (IS), Baghdad has cut a deal with the Iraqi Kurds, ending a long-running and intensifying dispute over unilateral Kurdish oil exports. This news has not only resulted in a jump in share prices for companies operating in Iraqi Kurdistan, but will also lead to another run on investment in Iraqi Kurd oil plays. Under the agreement between Baghdad and Erbil, the Kurdistan Regional Government (KRG) will give 150,000 barrels per day of oil exports to Iraq’s federal budget, and in return Baghdad will release $500 million in budget funds for…

  • Cold Unlikely To Linger But Low Oil Prices Might

    Natural Gas Outlook The extremely cold weather which blanketed the U.S. made natural gas one hot market. At one time this week, all 48 of the lower states had at least one area below freezing. Unlike last year, it looks like the current cold weather system will not become a lingering event. This is likely to trigger a fresh round of profit-taking, leading to increased volatility. This week, after early weakness, March Natural Gas futures soared to a new one-week high. One of the catalysts for the rally was the cold weather system blanketing most of the U.S., the other…

  • US Shale Winners And Losers – Part Three

    I think that many people are misreading the purpose of this series on $80 oil winners and losers. Most are looking at the most superficial message; as I mention specific companies who run into spend difficulties in a depressed oil environment, they imagine that I’m bashing the companies and telling investors to stay away. Nothing could be further from the truth. We’ve seen forward-looking CEO’s report this quarter on how lowered margins will trim projected Capex. We’ve heard from companies as well-financed as Hess (HES), which announced an $800m reduction, Conoco Philips (COP) and Rose Resources (ROSE) and particularly Continental…

  • Halliburton Is Bullish On Their Future & You Should Be Too

    If sensational headlines are to be believed, the recent drop in oil prices signals the end of the U.S. shale boom. The reality, however, is likely to be more about a shift in focus than it is about a collapse. Yes, some shale oil is fairly costly to extract and some wells were only drilled because WTI at over $100 made them seem like a reasonable proposition, but the vast majority of producers and plays can survive with oil at these levels. According to IEA Executive Director Maria van der Hoeven in an interview with Reuters recently “…some 98 percent…

  • Natural Gas Vehicles See Steady Growth

    While everyone is watching to see how low oil prices will affect U.S. shale drillers, natural gas production continues to rise. Each month, the U.S. posts new production highs (see chart), and 2014 is shaping up to be a record year for natural gas drillers. With production ratcheting upwards, the U.S. has been able to achieve record levels of storage injections, building back inventories after last winter walloped the east coast and depleted supplies. The abundance of natural gas is allowing utilities to increasingly burn the fuel in power plants for electricity – a well-known trend that continues to accelerate.…

  • Global Energy Advisory – 14th November 2014

    Politics, Geopolitics and Conflict No Respite for Libyan Oil Last week, gunmen took control of Libya’s major El Sharara oilfield. The field was being guarded by a militia group from Zintan when a rival militia currently largely in control of the capital, Tripoli, seized it in a bloody fight that left at least 13 people dead. Right now in Libya we are looking at two parallel governments supported by a variety of tribal militias, also warring with each other. The seizure forced a shutdown in production at the field, which at its height was pumping 200,000 bpd. The field is…

  • Traders Brace For OPEC Update

    Natural Gas Outlook A two-week short-covering rally triggered a surge in March 2015 Natural Gas futures, but a change in the fundamentals and a strong technical price level ended any hope of a return to prices levels not seen since late June, early May and late February. March Natural Gas futures jumped a little over 22% from October 27 to November 10 on expectations the colder-than-normal temperatures hitting key demand areas in the East Coast and the Midwest would linger into the start of the official winter season in December. Temperatures may have dropped last week, but the way natural…