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Premium Article Archive

  • The Two Great Survivors In Offshore

    Thursday morning saw a tremendous spike in share prices of the two biggest deepwater drilling rig owners, Transocean (RIG) and Seadrill (SDRL). After so many months of bad news and dropping share prices, is it finally time to get back on board to these specialists? Well, let's say it's time to finally put them back on your long-term radar. Transocean particularly shocked the street on their ability to beat every estimate out there on Thursday, with earnings of $865m, which translated to $0.95 a share, 17 cents above consensus. Seadrill also beat on revenue by a meager $10m, but based…

  • Surprising Opportunities In Coal

    Long term subscribers and those with a long memory may remember that back in August of last year I wrote a piece on coal stocks. At the time I described them as too risky for investors and suggested only one trade, shorting Westmorland Coal (WLB) which, at the time looked seriously overvalued. That trade worked out well as WLB fell from there, dropping around 40 percent until bottoming out earlier this month. That wasn’t the only coal stock to fall in that time. They pretty much all did, but now the risk/reward ratio has shifted enough to make investing in…

  • Activist Investing – What You Need To Know

    As activist investing in the oil and gas industry metamorphoses from a growing trend into a situation that is starting the rule the day, investors and industry experts alike are starting to wonder whether this is really beneficial for shareholders—and for the American economy in general. What is an Activist Investor? Activist investors—also often referred to as “activist shareholders” or “dissident shareholders”—are typically individuals or groups, such as hedge funds, that attempt to fundamentally change a company by acquiring large shares to obtain seats on the board and forcing emergency general meetings (EGMs) to take over a company and remove…

  • Global Energy Advisory – 27th February 2015

    Politics, Geopolitics & Conflict Al-Shabaab Reaches for Stature The Somali militant group Al-Shabaab—pushed back in Somalia largely by African Union (AU) forces and forced to regroup—has released a video calling on jihadists to attack shopping centers in Western countries, most specifically the US, UK and Canada, and is threatening more terrorist attacks in neighboring Kenya, an emerging East African oil giant. Specific Western targets are listed as the Mall of America in Minnesota, the West Edmonton Mall in Canada and the Westfield Mall in Stratford, UK. The FBI says there is no evidence supporting an imminent attack on the Mall…

  • Selling Pressure Rises As Rig Count Drop Slows

    Technical and fundamental factors weighed on crude oil late in the week, which could be signaling support has been pulled from the market. On Thursday, sellers overcame buyers at a key area on the daily chart and buyers also succumbed to another bearish inventory report. Throughout February, April crude oil futures had been range bound, trading inside the 2015 range of $44.37 to $55.05. This futures contract spent much of the month hovering around while trying to establish support at its retracement zone at $49.71 to $48.45. Buyers made two valiant attempts to breakout to the upside, but each move…

  • One Player That’s Not Headed Off A Cliff

    EOG Resources, despite their first miss in 8 quarters, has proven again it is best of breed of the shale players with its declared strategy for 2015. As prices for the stock get hit in the next days and weeks because of its miss and dropping crude prices, it would be a great opportunity to start a long-term position in the company. They are ultimately going to outpace virtually everyone else in the space. At the North American Prospect Expo, a conference for oil and gas players, KeyBank Capital used a slide proclaiming “Keep calm and frack on” – a…

  • Why This Trade Still Makes The Most Sense

    The oil market’s reaction to news this week told us a lot, and confirmed what many of us have maintained all along. Oil’s collapse may have had elements of fear about growth to it but, at heart, it was all about supply. Oil was bumping along in a $53-$54 range despite further indications that a Greek exit from the EU was on the cards, and all of the negative implications that has for European, and therefore global, demand. Late in the afternoon, however, when the American Petroleum Institute reported a 14.3 million barrel increase in their estimate of U.S. crude…

  • How To Profit From Oil Industry Mistakes

    Introduction Legal proceedings dealing with the disastrous Deepwater Horizon blowout in April 2010 are nearing an end, with BP (NYSE: BP) likely on the hook for billions of dollars in damages. Everybody remembers the months-long drama playing out, with repeated efforts to control the flow of oil ending unsuccessfully. The Macondo well continued to release thousands of barrels per day into the Gulf of Mexico until it was finally sealed. Seared into the memories of oil executives (and regulators) around the world, there has been a greater emphasis on deep-water drilling safety in the intervening years. And that presents a…

  • Global Energy Advisory – 20th February 2015

    International Oil & Gas Spotlight • After making massive finds offshore Israel, in the Levant Basin, Texas-based Noble Energy and its Israeli partner, Delek Group, are facing regulatory challenges as Israeli officials says the two likely will have to sell off some acreage to break up what is being perceived as a monopoly. First, the Antitrust Authority echoed these sentiments, and this week, Israeli Energy Minister Silvan Shalom chimed in with the same conclusion. Israelis are concerned that due to the potential monopoly situation, electricity prices could increase, along with the cost of living. In March 2014, the Antitrust Authority…

  • Saudi And US Production Up As Market Volatility Continues

    Crude Oil Outlook April Crude Oil futures failed to follow-through to the upside this week and are likely to finish the week lower. Although the market briefly penetrated last week’s high, it remained inside the range formed the week-ending February 6. Consecutive inside moves on the weekly chart typically indicates impending volatility. This assessment makes $55.05 the potential breakout level to the upside and $47.47 the potential breakdown level. Remaining inside this range will indicate trader indecision. Crude oil is currently being controlled by two factors, the fund traders and supply. Aggressive hedge and commodity funds are looking for any…