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Tanker stocks around the globe were crushed on Thursday as the TeeKay group--with six US listed equities and bonds--reduced their dividend to shore up their balance sheet. That was my oppotunity--and for OGIB subscribers. I've been following another tanker group--Golar (GLNG-NASD) and Golar Partners (GMLP-NASD) for years.  I knew the companies, I had...
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...
Even with WTI prices above $70 per barrel, and international Brent crude closer to $80… there really isn’t much geopolitical premium in the oil price yet. And that’s scary (as in… scary bullish) because war in the Middle East has rarely looked more certain—in two places. First off, oil prices are...
By Bill Powers "Insanity: doing the same thing over and over again and expecting different results." - Albert Einstein Therefore, energy investors in North America are insane. Cheap money (low interest rates) and high oil prices encouraged the drilling of many marginal plays from 2010-2014--causing a huge amount of energy bankruptcies after...
What’s the most un-sustainable part of the global energy complex? Maybe you would say co-ordinated OPEC production cuts. Or perhaps you would bring up high growth rates of shale producers. If you talked about the lack of free cash flow among shale producers you would be getting warm… But for me, when I...
Have you had trouble wrapping your head around this market? I know I have. The economic data is ugly. 10%+ unemployment is not a good place to be, no matter how you frame it. A second wave of the virus means a slowdown and a W-shaped recovery even if there...
The Cline Shale in Texas is one of the hottest new shale plays in the USA.  Devon Energy (DVN-NYSE) is suggesting it’s a huge play, pervasive over a very large area on the eastern shelf of the Permian Basin. In fact, the Permian is bursting with new resource plays—what’s old...
Heavy oil stocks will be The Top Investment in Energy if oil keeps gaining past the $45/barrel mark. The secret is in the numbers.  Let me show you how and why using Baytex Energy (BTE-NYSE/TSX) as a perfect example—because they have both light shale oil in the Eagle Ford and...