by +Keith Schaefer
In part one I wrote about the 3 oil patch sub-sectors I'm most bullish on, and how I'm trading them: refineries, oilfield services, and heavy oil producers.
Today, my outlook for the remaining oil and gas sub-sectors—from best to worst...
LIGHT OIL PRODUCERS
Here's the dilemma with them: improvements in fracking...
Kinder Morgan Canada – Is This Now A Sucker’s Bet?
If the Trans Mountain pipeline expansion from Alberta down through B.C to Vancouver goes ahead as planned, then Kinder Morgan Canada (KML-TSX) will probably be a decent investment at current prices. I run through some math with "one-foot-planted-firmly-in-the-air" below and...
Is This “Biggest Factor” Silently Charging Up The U.S. Natural Gas Market?
Mexican natural gas imports from the US will keep increasing through 2016 and 2017, to the point where Mexican demand could be 9% of US production with two years, up from the current 3.5%.
The chart below shows the...
What was the best investment niche in the U.S. energy sector the first half of this year?
Master Limited Partnerships, or MLPs.
Consider one key benchmark, the Alerian MLP Index (AMZ). Since December 31, 2007, the index has returned 66.6% for investors, with about 32% of that from capital gains. Compare...
Many of the leading Canadian natgas/condensate producers have exciting (bullish) short term stock charts—just at a time when one fundamental natgas chart looks ominously bearish. The Big Play for natgas in Canada is the liquids-rich Montney formation on the BC-Alberta border.
It is the Eagle Ford of Canada, with very...
One of the largest undeveloped shale plays in the world will get its First Big Test next month--June—the Beetaloo Basin in northern Australia.
It’s timely, it’s big, and for shareholders of Falcon Oil and Gas (FO-TSXv), it’s free. CEO Philip O’Quigley (yes he lives in Ireland) has done a novel-worthy...
The existence of a substantial gas play in Northern Spain has been discovered after the assessment of drilling and test data gathered from 14 wells drilled over the last 50 years or so.
One question investors should be asking about new dividend-focused E&P companies in the Canadian oil patch is:
How will they pay their taxes?
Deferring income tax payments is a major part of the business strategy for most junior E&Ps—one that investors don’t realize. Investors have become so used to junior producers (almost) never...