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Goldman: Go Long On Fracking

Business

Judging by the share price of shale oil and gas producers, you would think the industry is one from which to keep well away.

Goldman Sachs, however, is recommending clients go long on the premise that the fracking industry, while depressed now, is simply going through a down cycle.

In other words, today’s pain is tomorrows’ gain.

Rig counts are indeed down, as this graph from Oilprice.com shows:

Ample supplies have resulted in falling prices.

Natural gas inventories have surged this year, rising from a low point of 1,155 billion cubic feet (Bcf) in April to 3,724 Bcf at the end of October.

The falling rig count has reverberated down the supply chain.

The cost of consumables, like Permian frack sand, is down about 80% from its peak, Joseph Triepke, president of consultancy Infill Thinking, is quoted as saying.

Prices across the commodity spectrum have been undermined this year by a strong dollar and trade fears creating pessimistic investor sentiment. Oil and natural gas prices, however, have seen short-term support, as supply-side fears have spiked sentiment (only to fall back as fears have proved unfounded).

Having been boosted by the attacks to key Saudi Arabian production infrastructure earlier this summer, global oil prices came under further pressure as Saudi Arabia recovered rapidly in Q3, when output was back up to 10.3 million barrels per day in October.

Meanwhile, Iran announced it had discovered a giant oil field in the country’s south, Oilprice reports. The field may hold as much as 50 billion barrels of oil — almost as big as all of the reserves held in the U.S. (around 61 billion barrels).

If and when oil from Iran’s new field ever reaches world markets, however, is another matter.

Indeed, Goldman’s advice appears to be for the long term.

Prices are not expected to recover anytime soon, with the bank suggesting it could be a year or two before falling output brings the market back into sufficient balance for prices to rise.

By AG Metal Miner

OilPrice



88 Comments on "Goldman: Go Long On Fracking"

  1. makati1 on Sat, 23rd Nov 2019 5:22 pm 

    Cloggie, capitalism is going to be “tamed” as the world changes to socialism/communism. Capitalism has proved that it only works until there is no more blood to be sucked from the serfs, and they rebel. As resources get more and more scarce/expensive the days of leaching off the workers will end. Coming soon to a neighborhood near you.

  2. Cloggie on Sat, 23rd Nov 2019 5:46 pm 

    Haaretz fears an anti-semitic backlash as a result of the kosher attempts to bring the Aryan Trump to his downfall:

    https://www.haaretz.com/us-news/.premium-trump-impeachment-holds-pitfalls-and-perils-for-american-jews-1.8131087

    “Trump Impeachment Holds Pitfalls and Perils for American Jews”

    Shifty Schiff
    Greedy Goldman

    Trump may be a buffoon in many respects, but he is impressive too, the most impressive president since JFK (that other Dracula fighter), a lone courageous fighter against the most devious people on this planet, the only real enemy people of European descent have.

    Bring down Dracula!

    https://www.thesun.co.uk/wp-content/uploads/2019/04/NINTCHDBPICT000486026175.jpg

    Dr van Helsing, Amsterdam.

    LOL

  3. Cloggie on Sat, 23rd Nov 2019 5:55 pm 

    https://www.haaretz.com/opinion/.premium-trump-has-made-it-official-he-is-the-greatest-anti-semite-of-our-age-1.7729391

    “Trump Has Made It Official: He Is the Greatest anti-Semite of Our Age”

    #BadgeOfHonor

  4. Richard Guenette on Sat, 23rd Nov 2019 6:37 pm 

    Canada needs to United the Right and get rid of Justin Trudeau, the phony who wore blackface makeup, harassed women in government, allowed ISIS fighters to return back to my country (Canada), get rid of the Carbon Tax (a scam that has nothing to do with the environment and taxes us to death), end political correctness. Down with liberalism, socialism and communism.

  5. Richard Guenette on Sat, 23rd Nov 2019 6:44 pm 

    The West needs to return to its traditional values, restore sanity and prevent illegal immigrants from entering into our countries. We are not “racist”- we are the minority (because of genocide). To hell with globalism! People can say whatever they want (Hate speech laws aren’t going to stop us from freely speaking our minds).

  6. Richard Guenette on Sat, 23rd Nov 2019 7:00 pm 

    The Zionists are a bunch of bloodsucking leeches.

  7. Richard Guenette on Sat, 23rd Nov 2019 7:01 pm 

    The West doesn’t belong to the Rothchilds or any other crime family.

  8. Richard Guenette on Sat, 23rd Nov 2019 7:06 pm 

    Europe needs to form a continent wide army to defend all of its borders. Replace NATO. Rise up against China. Reach out to Russia.

  9. Richard Guenette on Sat, 23rd Nov 2019 7:18 pm 

    Capitalism is the key to a stable economy. Hard work, not handouts. Unions impede economic growth (They are greedy and hold workers back).

  10. Richard Guenette on Sat, 23rd Nov 2019 7:24 pm 

    America is a true democracy. And America has a friend in Canada. Build the Wall and have Mexico pay for it).

  11. Richard Guenette on Sat, 23rd Nov 2019 7:28 pm 

    The people in China should unite against the Communist dictatorship and transition to a democracy. Socialism and communism (both sides of the same coin) never worked for the USSR, Cuba, Venezuela, Bolivia etc. If China cracks down on pro-democracy protestors in Hong Kong, then the US should impose economic and trade sanctions on Chinese companies (such as Huawei), end trade with China (bring jobs back to America in all regions).

  12. makati1 on Sat, 23rd Nov 2019 7:38 pm 

    Richard, (who ever you really are) China should never go to a democracy as there is no such thing. Never was. Never will be. A real democracy cannot exist as there is no way everyone can know and understand and vote intelligently. That takes a level of intelligence, commonsense, and unselfishness that does not exist in humans.

    China has the best system possible. It relies on intelligence and education for picking its top leaders, not the bullshit process that Western “democracies” use where the puppets of the oligarchs have already been chosen and the “voters” get to play like they matter.

    After all, Chinese culture is 5,000 years old. They have tried everything and settled on the current system. The Chinese leaders know they only stay in power as long as the serfs are happy.

    https://www.globalresearch.ca/choosing-china-leaders/5695661
    https://www.globalresearch.ca/understanding-china/5695479

    You need to get educated, Richard, not brainwashed.

  13. makati1 on Sat, 23rd Nov 2019 7:39 pm 

    BTW Richard, the US should mind its own business as it swirls down the shitter.

  14. Richard Guenette on Sat, 23rd Nov 2019 7:41 pm 

    Mak, you are entitled to your opinion like everyone else.

  15. Davy on Sat, 23rd Nov 2019 8:19 pm 

    Well said Ricky. What country are you from friend.

  16. Richard Guenette on Sat, 23rd Nov 2019 8:24 pm 

    The US should allow for more mining, oil and gas exploration. First, remove the suffocating rules and regulations. Second, create jobs (build more pipelines).

  17. Richard Guenette on Sat, 23rd Nov 2019 8:25 pm 

    Davy, I live in Canada.

  18. makati1 on Sat, 23rd Nov 2019 9:46 pm 

    Richard, my “opinion” is based on current events/facts. Yours seem to be based on propaganda/fiction. You can believe what you want as long as it doesn’t hurt anyone else. Obviously, you did not bother to read my refs as they would cause doubt in your narrow mind. So be it. Canada will go down the same shitter as the US in the near future. Enjoy the ride! LOL

  19. Davy on Sat, 23rd Nov 2019 11:21 pm 

    I thought you said you live in NederNaziland, Cloggo.

  20. Not Davy on Sun, 24th Nov 2019 12:17 am 

    juanpee garbage obv.

    “I thought you said you live in NederNaziland, Cloggo.”

    I would never capitalize cloggo and I don’t no how to use proper punctualisation.

    stupid

  21. Cloggie on Sun, 24th Nov 2019 3:17 am 

    Top Gear car fanatic Jeremy Clarkson admits climate change is real:

    https://www.dailymail.co.uk/news/article-7719139/Ive-got-no-doubt-climate-change-admits-Jeremy-Clarkson.html

    “I’ve got no doubt about climate change, admits Jeremy Clarkson after seeing a drying riverbed in South East Asia while filming The Grand Tour”

    Difficult to overestimate the significance of this admission and its effect on the car boobs.

    https://deepresource.wordpress.com/2019/01/10/carver-goes-into-production/

    (Typical Top Gear broadcast: video at the top)

    Clarkson (not to be confused with Jeremy Claxon) recently described the 16-year-old eco-warrior Greta Thunberg ‘spoilt brat’ (and had a point).

  22. Richard Guenette on Sun, 24th Nov 2019 3:57 am 

    Canada is relieved to be rid of the failed policies of Harper and the right-wing fanatics.

    Down with hate. Down with DavySkum.

  23. Richard Guenette on Sun, 24th Nov 2019 3:59 am 

    America is not a true democracy otherwise Bush II and Trump would have been flushed down the shitter after both lost the popular vote.. And America has a friend in Canada.

  24. Richard Guenette on Sun, 24th Nov 2019 4:06 am 

    Despite the Trump administration’s best efforts to overturn 100 years of hard fought improvements in water and air quality and wildlife conservation, cheers to the courts for overturning 94% of all proposed changes.

    Second, Trump’s jobs yalk is just that. Remember how Chump gushed on and on about Harley Davidson Motorcycles Kansas City manufacturing plant served as a model all companies should emulate. Trump even awarded the company president the Medal of Freedom.

    Oops…. Earlier this year Harley Davidson shutter its Kansas City plant and permanently unemployed 800 plant workers as manufacturing is being outsourced to Asis.

  25. Richard Guenette on Sun, 24th Nov 2019 4:07 am 

    Looks like Cloggie stole my ID earlier in the day.

  26. CloggieFraud Reports on Sun, 24th Nov 2019 4:09 am 

    “Trump Impeachment Holds Pitfalls and Perils for American Jews”

    Gee, CloggieFraud, your concern for America’s Jews is touching.

  27. CloggieFraud Reports on Sun, 24th Nov 2019 4:11 am 

    First, CloggieFraud says, “Trump Impeachment Holds Pitfalls and Perils for American Jews”

    Then CloggieFraud crows, “Trump Has Made It Official: He Is the Greatest anti-Semite of Our Age”

    #BadgeOfHonor

  28. JuanP trash on Sun, 24th Nov 2019 4:25 am 

    Boring stupid stuff from the board waste case. He actually has done this for 2 years now, daily. Fuckwack

    Nuff Said said madkat@BrokenRecord.com Nuff said.

    CloggieFraud Reports said First, CloggieFraud says, “Trump Impeachment Holds…

    CloggieFraud Reports said “Trump Impeachment Holds Pitfalls and Perils for A…

    Richard Guenette said Looks like Cloggie stole my ID earlier in the day.

    Richard Guenette said Despite the Trump administration’s best effo…

    Richard Guenette said America is not a true democracy otherwise Bush II…

    Richard Guenette said Canada is relieved to be rid of the failed policie…

    Not Davy said juanpee garbage obv. “I thought you said you…

    Davy said I thought you said you live in NederNaziland, Clog…

  29. Davy trash on Sun, 24th Nov 2019 4:43 am 

    All stupidskums stupid sock names.

    All stupidskums stupid comments.

    Example: DavyP trash on Sun, 24th Nov 2019 4:25 am. And all the rest.

  30. JuanP trash on Sun, 24th Nov 2019 4:57 am 

    morning stupid. Do you plan on a full day of stupid?

    this is stupid:
    Davy trash said All stupidskums stupid sock names. All stupidskums…

  31. DavyP trash on Sun, 24th Nov 2019 5:36 am 

    morning stupid. Do you plan a full day of stupid?

    this is stupid:
    Davyskum trash on Sun, 24th Nov 2019 4:25 am
    Boring stupid stuff from the board waste case…..

  32. Davy Typical ID Theft and Socks on Sun, 24th Nov 2019 5:51 am 

    JuanP trash on Sun, 24th Nov 2019 4:25 am

  33. DavyTurd Blossom on Sun, 24th Nov 2019 5:55 am 

    The DavyTurd Blossom SHALL NEVER PREVAIL.

    This is my job and primary mission in life.

  34. JuanP trash on Sun, 24th Nov 2019 6:01 am 

    Stupid, you are irrelevant because your are boring, mindless, and stupid. Until you offer intelligence you are just demonstrating personality disorders and mental illness. You have proven this condition with 2 years of this daily shit.

    fuckwack

    This is stupid:
    DavyTurd Blossom said The DavyTurd Blossom SHALL NEVER PREVAIL. This is…

    Davy Typical ID Theft and Socks said JuanP trash on Sun, 24th Nov 2019 4:25 am

    DavyP trash said morning stupid. Do you plan a full day of stupid?..

  35. Davy on Sun, 24th Nov 2019 8:20 am 

    Oops, sorry for losing my widdle temper again y’all.

  36. JuanP on Sun, 24th Nov 2019 2:37 pm 

    Hi Davy,

    What’s a “fuckwack”? Bet you scored 600 on the verbal section of the SATs.

  37. Davy on Sun, 24th Nov 2019 3:57 pm 

    Juanpee, the definition of a fuckwack is you, stupid.

    Well, on the subject of SAT, I finished college unlike you who didn’t finish high school. Big difference there stupid. This reality is reflected in commenting here. I guess you consider Muzzie shit creative writing. lol dumbass

  38. Richard Guenette on Sun, 24th Nov 2019 5:01 pm 

    The drug cartels are behind America’s drug crisis, not the pharmaceutical companies!

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