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The core strategists of OPEC are brilliant. In a nutshell, they’ve done TWO incredibly smart things. One is that by timing their much publicized production cuts to start in January 2017—when oil demand starts a steep rise—they really don’t have to cut at all. As you can see on the chart, oil...
Who is saying “America First” when it comes to oil? OPEC is!  And it means US oil stocks—especially in the Permian Basin in Texas--should have a great run in the coming months. It’s so simple—let me explain. The rising oil price is now pricing in a production cut of 1 million barrels...
Imagine if you will a street on which there are three identical houses. I’m not talking about similar houses. Not houses that look kind of the same. I’m talking about identical houses. Built the same year, in the same condition, with the same design and square footage.  Even the colors are the same. If...
The media said there was no winner at the June OPEC meeting held early this past week. But there was—a big winner in fact. OPEC producers didn’t win because they didn’t get a production-cap deal that would instantly give them a higher oil price. Even the Saudis are now issuing multi-billion dollar...
The Offshore Oil Business Is Crippled And It May Never Recover How badly do oil producers want to transition out of the deepwater and focus on shale? And guess what that means for the global oil price? Exxon Mobil (NYSE:XOM) just paid Seadrill (NYSE:SDRL) $125 million in cash to get out of its commitment to...
We are now into Round 2 of the Global Oil War—where the Saudis maximize their revenue, and keep US shale producers—and their lenders—under the Saudi thumb. But there are a few very smart men—and I’ll tell you about a few of them in a minute—who think the price war will...
Oil is up.  Consensus has changed from a supply glut to a more balanced market by the end of this year—but the Market is in full swing pricing that in now. Energy producers across the board have had a good run in the last month, and it could continue—both Brent and...
What did Chevron accomplish in 2015 by outspending cash flow by $19 billion? Increase production a paltry 2%. Barely replace reserves--107% of production. That is what Chevron managed to achieve in 2015 by spending $31 billion while generating just $19 billion of cash flow.  And that is actually incredibly bullish, despite...