• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 5 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 hours Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 3 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 7 days "The Calm Before The Storm In Oil Markets" by Tom Kool of OILPRICE and seen at YahooFinance
  • 7 days "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 7 days Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 13 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

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 tried to put on these capex cuts, the final result of lower spends will be lower volume growth. We’ll inevitably see the markets instill some discipline into the US oil sector that has expanded on a platform of a breakneck drilling pace, expensive leases and high-yield bond leverage. A recent FT article highlights areas, particularly in the Mississippi Lime and Eaglebine that put over 400,000 barrels a day at risk, while I have outlined various players in the Bakken and the Tuscaloosa Marine Shale that I believe add close to 500,000 barrels a day of production that is at risk. All of this doesn’t count the better-capitalized players in more core areas that will also inevitably lower growth rates in an $80 oil environment. But all that will take time.

How long? We’ve already been clear that production declines will come as a last resort for US E+P’s, as bondholders…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News