The SmartGrid is here to redefine how we generate, deliver, and pay for electricity—and that will be a big opportunity for energy investors in 2016. The SmartGrid will help utilities reduce demand among their customer base during the very expensive peak periods, and cost-effectively increase their use of renewable energy. The good news for investors… Continue Reading
I’m going to run through a few seemingly unrelated facts here fairly quickly, but the message is: the North American energy market is so opaque right now—because fundamentals are changing so fast—that my #1 2015 credo—SMALL POSITIONS—still holds true. And be prepared to change your mind in a hurry. This is the chart that is… Continue Reading
Why are recent natural gas deals in the Western Canadian Sedimentary Basin (WCSB) getting done at very expensive metrics, when the consensus for Canadian gas prices in the near to medium term is lower—potentially a lot lower? The obvious answer is LNG—Liquid Natural Gas exports; even though the first exports are realistically a minimum five… Continue Reading
To make money in this energy market, you have to be innovative and flexible. I warned subscribers earlier this year to prepare themselves for some out-of-the-box investment ideas to make 2015 a very profitable year. In 2012 I did that with refineries. In 2013 I did that with ethanol stocks as traditional upstream E&P stocks… Continue Reading
Investors can’t say definitively that the price of oil bottomed in the third week of March, but some very recent data released by the International Energy Agency (IEA) that supports the premise that a bottom is in. More on that in a moment. From a low near $43 per barrel WTI has been bumping around… Continue Reading
The Shale Revolution is strictly a North American game. Before the Great Commodity Collapse of 2014, it really never found its footing anywhere else in the world. Of all the plays I looked and of the few I covered, only one showed any real promise—the Vaca Muerta oil play in western Argentina. I’m now making… Continue Reading
By Nathan Weiss and Keith Schaefer Where is all the oil coming from? Oil inventories continue to surge, but U.S. production has flatlined for weeks—even months. I mean really—look at these simple facts that have been staring the Market in the face for months: Year-to-date (YTD) production in 2015 in the U.S. is only 160,000… Continue Reading
Bakken oil production has already declined in 2015. There is compelling evidence that this decline is going to accelerate significantly in the next couple of months. If that happens the recovery we have seen in oil prices in recent weeks is also going accelerate. Being as the market likes the fact that U.S. production growth… Continue Reading
There are a lot of options for your hard earned capital and no shortage of folks wanting to tell you how to use it. Recent trends have been very profitable in different sectors. On the other hand, energy has displayed a horrendous previous 52 weeks. So here are 5 reasons not to invest in energy.… Continue Reading
Since oil really started crashing, the media can only talk negatively about oil. These are the same talking heads who had no clue about the impending 50% plunge in prices. Why do we listen to them—instead of paying attention to facts? Here is one fact….US gasoline and oil demand is surging. That may surprise you,… Continue Reading
This is the worst time of year for world oil prices to hit a five year low for North American energy producers. That’s because they typically evaluate their reserves at fiscal year-end—and that usually matches the calendar year. That means reserve evaluations are done with the current price “deck” looking forward (often called “strip… Continue Reading
There’s a race going on in the oilpatch now to the bitter end—the end of the year. And it’s not being driven by economics. It’s being driven by the REAL currency in the oilpatch: Reputation. The energy market is cyclical and all the veteran producers and bankers of the oilpatch know this. Each senior management… Continue Reading
What are The Pros doing in the Market? Each quarter I like to interview with a fund manager who I think has his pulse on what’s happening in the energy markets. Today I’m sharing an interview with Martin Pelletier, one of the principals at TriVest Wealth Counsel in Calgary. I only have to manage risk… Continue Reading
Everyone knows that Iraq is an important oil producing country. But Iraq is more than just important, it is critical. Iraq is so important that in October of 2012 the International Energy Agency (IEA) released a report called “World Energy Special Outlook On Iraq”. In that report the IEA concluded that in 2035 oil prices… Continue Reading
If you are looking for a reason to get bullish on future oil prices look no further. The chart below is one of the most bullish charts in the energy patch today. This chart tells us two critical things. First, it tells us that the horizontal oil boom is due almost entirely to only two… Continue Reading
