• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 13 mins Would bashing China solve all the problems of the United States
  • 2 hours Model 3 cheaper to buy than BMW 3 series.
  • 1 hour Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 3 mins Pompeo's Hong Kong
  • 1 hour Thugs in Trumpistan
  • 2 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 23 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 2 hours China’s Oil Thirst Draws an Armada of Tankers
  • 12 hours Income report showing potential future spending and economic growth
  • 5 hours Coronavirus hype biggest political hoax in history
  • 13 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 2 days China to Impose Dictatorship on Hong Kong
  • 14 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
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

A Perfectly Positioned Company Set to Benefit from North America’s Oil Boom

The most compelling news of the week in the energy world was the International Energy Agency’s (IEA) mid-term report, calling for a ‘supply shock’ from North America’s increasing oil supply.

For those of us in the daily trading game, these ‘revelations’ are hardly that, we’ve been well aware of the hyperbolic growth of supply from tight oil in the US from the Eagle Ford, the Bakken and elsewhere, the growing supply from Canadian oil sands in the Athabasca, and the new and stunning deepwater finds in the Gulf of Mexico. 

So, it has been hard to translate those IEA findings into a trade that is truly ‘new’ – Bakken shares in quality E+P’s like Continental (CLR) and EOG resources (EOG) have been strong and levitating quite nicely already, as have Canadian shares of Suncor (SU) and Marcellus plays like Cabot oil and gas (COG) and EQT resources (EQT). 

What I’d like to find going forward is the stock that hasn’t yet benefited from this supply shock here in the US, not necessarily from the increased supply, but in fact from the decreasing supply in Europe and perhaps a long-term arbitrage that is being created. 

Perhaps I’ve found it in the refining space.

Here in the US, crude oil is not legal for export, yet refined products are.  With an increasing supply of crude coming on line and a demand profile unable to soak up the increase of refined…




Oilprice - The No. 1 Source for Oil & Energy News