Keith Schaefer: Refineries Will Be Big Winners When Price Gaps Widen
Source: Zig Lambo of The Energy Report (2/7/13)
The Street thinks oil price differentials stem from lack of pipelines. That’s only partly true, says Keith Schaefer, editor of Oil & Gas Investments Bulletin, arguing that limited refinery capacity is just as big a challenge. Schaefer expects most investors to be caught completely off guard when the Brent/WTI gap widens and [...]
The Really, Really Big Picture
There isn’t going to be enough net energy for the economic growth we want
by Chris Martenson, Peak Prosperity:
[Many longtime followers of the Crash Course have asked Chris to update his forecasts for Peak Oil in light of the production increases in shale oil and gas over recent years.] …
There has been a very strong and concerted public-relations effort to spin the recent shale energy plays of the U.S. as complete [...]
Mark Lackey: Energy Stocks Could Deliver Stealth Profits
Source: Zig Lambo of The Energy Report (1/8/13)
In the midst of a global market lull, many companies are sitting on their hands, argues Mark Lackey of CHF Investor Relations. That’s why he’s scoping out smart management that’s keeping busy and making great progress—whether or not the markets are quick to notice. Learn who’s getting a running start in the uranium, oil and [...]
From Carpe Diem:
1. The Department of Energy released its weekly report today on U.S. crude oil production and reported that domestic oil output averaged 6.818 million barrels per day for the week ending November 23, which was the highest amount of domestically produced oil since the first week of February 1994, almost 19 years ago.
As a result of the advanced drilling technologies (hydraulic fracking and horizontal drilling) that starting unlocking [...]
The U.S. shale boom has driven the cost of Gulf Coast light, sweet oil to its lowest level versus Brent crude in almost a quarter century as the nation’s dependence on foreign supplies wanes.
Light Louisiana Sweet, the benchmark grade for the Gulf Coast known as LLS, has traded on the spot market at an average of 15 cents a barrel more than Brent this year, the smallest premium since [...]
From The Daily Crux:
The Financial Post reports Israel – long considered a loser in the Middle East “oil lottery” – sits atop an enormous shale oil and gas formation. Geologists estimate the Shfela Basin contains some 250 billion barrels of oil. This is just one of several formations discovered within Israel’s borders.
The discovery has major implications for Israel… but they aren’t the only ones. U.S. and Canadian companies have pioneered horizontal [...]
Is peak oil imminent? Lots of people seem to think so.
The data (released by BP, a company that has a vested interest in oil scarcity) don’t agree.
Proved reserves keep increasing…
The oil in the ground will run out some day. But as the discovery of proven reserves continues to significantly outpace the rate of extraction, the claims that we’re facing immediate shortages look trashy.
Some may try to cast doubt on [...]
In case you missed it – and you very well might have, since the media was too busy talking about gay marriage to be bothered – a rather remarkable thing happened in Washington this week. An auditor from the GAO testified before the House Science Subcommittee on Energy and Environment on the subject of energy. But instead of hearing about how horrible things are, she calmly delivered something of a bombshell.
From Marin Katusa, Chief Energy Investment Strategist, Casey Research:
At the latest Casey Research conference, respected investment analyst Porter Stansberry stood at the podium and predicted that the price of oil will fall below US$40 per barrel within the next 12 months. Part of his reasoning revolves around the impact that the shale gas revolution has had in the United States – he believes a similar thing will happen with oil.
From Zero Hedge:
Hugh Hendry is back with a bang after a two year hiatus with what so many have been clamoring for, for so long – another must read letter from one of the true (if completely unsung) visionary investors of our time: “I have not written to you at any great length since the winter of 2010. This is largely because not much has happened to change our views. [...]
People are often confused about the overall extent of U.S. oil reserves. Some claim that the U.S. has hundreds of billions or even trillions of barrels of oil waiting to be produced if bureaucrats will simply stop blocking development. In fact, in a recent debate between Republican candidates contending for Gabrielle Giffords’ recently vacated House seat, one candidate declared “We have more oil in this country than in Saudi Arabia.” [...]
March 1, 2012
Gas may be getting expensive, but talk is still cheap. So politicians are responding to the latest spike in petroleum prices as they always do: with a barrage of partisan accusation that has much more to do with exploiting the issue than addressing it.
… Please, everyone, just ignore this blather. Here’s what is actually going on: World crude oil prices determine the vast majority of the per-gallon price [...]
A funny thing is happening on the way to the clean energy future – reality is setting in. There is “incontrovertible evidence” about the economic growth and job creating effects of America’s unconventional oil and gas production boom – more than 600,000 jobs directly attributable to shale gas development. Even President Obama is praising the job creating benefits of “America’s resource boom.” America is getting its energy mojo back [...]
In the first half of 2011, the Big Four benefited from tight supply-demand conditions for many key services, as frenzied drilling activity in North American shale oil and gas plays strained the industry’s capacity to meet these needs.
In particular, a shortage of pressure pumping capacity–a service critical to hydraulic fracturing–had enabled service providers to push through substantial price increases in recent years. Hydraulic fracturing is a process whereby producers pump [...]
From Carpe Diem:
Reuters reports that the shale oil-rich area of Texas known as the Eagle Ford is quickly becoming the country’s new hot spot for oil, and could rival production in the Bakken region of North Dakota within a few years:
“Over the past two years, some 30 companies have moved in to a shale prospect in South Texas called the Eagle Ford that could add 420,000 barrels per day (bpd) [...]
It was innovative American frack production enhancement procedures that ignited the shale bonanza. But the race is now on for the next generation super-fracking techniques able to release further huge quantities of oil and gas at an even more commercially viable cost………
Shale gas‚’ contribution to the U.S. GDP in 2010 was over $76.9 billion. By 2015 it is projected to be $111.2 billion, by 2035, $231 billion. According to BP‚‘s [...]
ASPO-USA Conference Takeaways
Here’s what I included as an off-topic comment I put in my weekly report at my not-related-to-investing-or-energy day job to try to give some of the people I work with a bit of a wake-up call:
“Off topic: I attended the Peak Oil conference downtown last week. Here’s the key results:
Peak oil is proceeding right on schedule with growing oil supply/demand tightness leading up to the Peak around 2015.
The making of computers, electrical equipment, machinery, autos and other goods may shift back to the US from China. Photo: AP
Assumptions that the Great Republic must inevitably spiral into economic and strategic decline – so like the chatter of the late 1980s, when Japan was in vogue – will seem wildly off the mark by then.
Telegraph readers already know about the “shale gas revolution” that has turned America into the world’s [...]