The Overstated Impact Of Trump On Oil

With Donald Trump set to enter the White House and OPEC having agreed to production cuts, analysts are focused on how the global oil industry and prices will be impacted in 2017. The new U.S. President-elect and his cabinet, along with their pro-drilling policies, are increasing hopes of a bright future for the U.S. oil industry, but it remains to be seen whether these hopes will translate into any practical outcomes. The most important of Trump’s energy appointments, it would seem, is the ex-CEO of ExxonMobil Rex Tillerson as Secretary of…

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Why High Risk Energy Investors Are Looking To Iraq

There are distressed energy investors, investors who are distressed about energy, and then there are investors who will buy distressed properties that no one else would touch with a ten-foot pole. Of late that last group is starting to become interested in an area of the world that is radioactive to every other investor out there; Iraq. Iraq is a war-torn mess where the prospect of earning a profit is almost unimaginable to many investors. Yet a select few investors are starting to look for opportunities in the country, and in the process are giving…

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Reservoir Damages May Stop OPEC From Cheating

OPEC oil production comes primarily from conventional reservoirs. These reservoirs require reservoir pressure management. Some have suggested that Saudi Arabia’s rationale for cutting production was to reverse the reservoir damage that overproduction has, or may have, caused. Preservation of reservoir integrity may ultimately limit “immediate” increases to inventories from OPEC. The temptation to cheat on quotas undoubtedly rises as prices rise, but this will occur in a universe populated by mostly long established fields for…

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Reservoir Damages May Stop OPEC From Cheating

OPEC oil production comes primarily from conventional reservoirs. These reservoirs require reservoir pressure management. Some have suggested that Saudi Arabia’s rationale for cutting production was to reverse the reservoir damage that overproduction has, or may have, caused. Preservation of reservoir integrity may ultimately limit “immediate” increases to inventories from OPEC. The temptation to cheat on quotas undoubtedly rises as prices rise, but this will occur in a universe populated by mostly long established fields for…

Continue reading »

Coal And Natural Gas Poised For Gains In 2017

We’ve done exceedingly well in 2016 trading oil stocks – but as we move to 2017, we need to take a look at where to concentrate our focus to continue the strong performance. While we’ve had several opportunities to take advantage of dips in oil prices to get quality oil E+P’s at bargain prices in the last year, those bargains are no longer around – many of our most favored stocks are well priced and not to be bought today. So to start 2017, as with all my trades, I want to look for VALUE – where the rest of the…

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Coal And Natural Gas Poised For Gains In 2017

We’ve done exceedingly well in 2016 trading oil stocks – but as we move to 2017, we need to take a look at where to concentrate our focus to continue the strong performance. While we’ve had several opportunities to take advantage of dips in oil prices to get quality oil E+P’s at bargain prices in the last year, those bargains are no longer around – many of our most favored stocks are well priced and not to be bought today. So to start 2017, as with all my trades, I want to look for VALUE – where the rest of the…

Continue reading »

Coal And Natural Gas Poised For Gains In 2017

We’ve done exceedingly well in 2016 trading oil stocks – but as we move to 2017, we need to take a look at where to concentrate our focus to continue the strong performance. While we’ve had several opportunities to take advantage of dips in oil prices to get quality oil E+P’s at bargain prices in the last year, those bargains are no longer around – many of our most favored stocks are well priced and not to be bought today. So to start 2017, as with all my trades, I want to look for VALUE – where the rest of the…

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Where To Look For Value Within Energy Next Year

As 2016 comes to a close investors need to consider two important issues: (1) what to do with the stocks they held this year, and (2) how to position themselves for next year. 2016 as a whole was a good year for energy stocks. The group is still nowhere near the highs of a few years ago, but oil seems to have decisively bottomed and most energy stocks are now rebounding strongly. Against that backdrop, investors should consider locking in gains and losses on stocks based on their personal tax situation. The typical advice of financial advisors…

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Oil Prices Set To Rise In 2017 On Balancing Markets

Friday December 23, 2016 In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers. Let’s take a look. 1. Dollar rally at a turning point? (Click to enlarge)- The U.S. dollar has rallied to its strongest level in more than a decade in recent weeks, as the uncertainty surrounding the presidential election disappeared and the Federal Reserve hiked interest…

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