How quickly could US shale production grow again if the oil price keeps rising?
I suggest there has been a fundamental change—a bullish change—that will prevent US oil production from rising quickly. It certainly won’t grow as fast as it did from 2010-2015.
That’s because
US production was able to grow so...
Whenever I can, I invest for the long term.
The reality is, oil and gas and ethanol markets are not only cyclical, but volatile within cycles.
So when I find a company that is
a) Debt free
b) Can be so profitable it can increase its dividend TWICE in 2016 so far
c) Gives me exposure to...
Oil went from $8-$147 per barrel between 1998-2008. Then it crashed to $32. Then it rocketed to $105 for five years. Then it crashed to $27.
Notice a pattern at all?
Ever wonder why management of senior oil companies don't notice this same pattern? How can that be so when the...
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...
Who said Chinese commodity demand was dead?
Through the first three months of 2016 China imported 75.2 million gallons of ethanol from the United States. That is more ethanol than the 70.5 million gallons China imported from the US for all of 2015! Ethanol is used around the world as...
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...
What is “optionality”?
In investing, it’s having a lot of upside with very little downside. I would also call that an asymmetrical trade.
At $45-$50 per barrel oil, most producers no optionality. They can’t grow—or if they can, it’s only by a small amount, like 5-10%.
But I found The Company—with enormous...
Canadian natural gas prices on the spot market hit an intraday low of $0.05/mcf earlier this month—that’s FIVE CENTS per thousand cubic feet. That was a result of the massive forest fires around the oilsands hub city of Fort MacMurray, which has taken 1 MM bopd of heavy oil...
