• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 24 hours "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 11 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 10 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 10 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 3 days The Federal Reserve and Money...Aspects which are not widely known
  • 1 day "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 7 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 10 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 11 days Goldman Betting on Cryptocurrencies
  • 14 days Сryptocurrency predictions
Editorial Dept

Editorial Dept

More Info

Premium Content

Is It Time To Buy Oil And Gas Pipeline Stocks?

This month we are taking another look at pipelines, specifically those used to transport oil and gas from the field to refineries. There is an odd disparity in the fortunes of these companies and the refiners we looked at last month, Valero Energy and Phillips 66, (NYSE:PSX). Refiners have continued a relentless upward march month over month, while most pipelines are flat to slightly higher.

I am not suggesting that there is a direct link between these two types of companies, because, although they are interdependent on each other, they have vastly different business models. That said, if you focus on the interdependence, i.e. pipelines are required to move oil and gas to refineries in order for the latter to make the refined products we all use and need, there should be some “sympathetic” price movement in one sector when the other is responding so rapidly to market forces.

Now if you were expecting me to solve this riddle for you, you are going to be disappointed. I have given up trying to prognosticate when the pipeline industry will be revalued to reflect the importance of its asset base, and the criticality of its presence in the energy security story. I still think it will happen, but it’s anybody’s guess as to when.

We are going to start thinking of pipelines as primarily income vehicles that in a rising market receive a stream of income that provides the funds flow to pay above-average distributions to unitholders. Their…





Leave a comment

Leave a comment




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