A Middle East Financial Crisis Is In The Making

A Dubai-based operator of ports and terminals around the world is returning to full state ownership with a proposed transaction and a subsequent delisting from Nasdaq Dubai. This could be one of the latest signs that the oil-rich countries in the Middle East are still struggling to shore up budgets and finances in the aftermath […]

Jim Cramer: ”Fossil Fuels Are Done”

“I’m done with fossil fuels. They’re done. They’re just done.” CNBC’s Jim Cramer didn’t even feel the need to address the disappointing earnings from the oil majors. Chevron and ExxonMobil had just announced fourth quarter results, which saw profits drop again. Their stock prices were down by 2 percent or so. It didn’t matter. He […]

Is This The End Of Canada’s Oil Sands?

Another billion-dollar energy project is polarizing Canada once again, but this time, it’s got nothing to do with pipelines, or even LNG terminals. It’s the Frontier oil sands mine that the federal government of Justin Trudeau must approve or reject by the end of next month. According to most observers, this decision will seal the […]

Alarm Over Virus Pushing Down Oil

Oil extended declines from the lowest close in seven weeks on speculation China’s coronavirus outbreak may dent demand as the market tackles a glut of global crude supplies. Futures lost 1.7% in New York as Chinese officials halted travel from Wuhan, the city at the epicenter of the outbreak. U.S. industry data signaled American crude […]

‘A sector in disarray’: Oil majors live beyond their means on investor payouts, study finds

Photo: Daniel Acker / Bloomberg A Chevron drilling operation in Texas. A think tank that favors renewable energy released results of a study that it says shows oil companies are “a sector in disarray.” The largest oil and gas companies for years have lived beyond their means and paid more money to investors than they […]

Oil Update

Summary The facts remain that Production/Consumption has seen consistent growth since 2011 with only minor variation of 1.74% +/-0.013%. The data presented shows the US developing a Refined Product Export business since 2003 which has grown ~13% annually. The history from 2003 includes the speculative “Peak Oil” 2010-2014 period representing WTI over $100/BBL only to […]

The Future of the Oil Company

When it comes to the future sustainability (excuse the pun) of oil companies, there are two trains of thought, one of which is that they should ‘stick to their knitting’ and just focus on what they are good at, which is extracting oil and gas out of the ground, refining those fossil fuels and delivering […]

Peak Permian Oil Output Is Closer Than You Think

Such is the extent of the shakeout in the U.S. shale industry that Permian Basin oil production is closer to peaking than many forecasts suggest, according to one energy investor. Adam Waterous, who runs Waterous Energy Fund, regards the sector’s financial position as unsustainable after years of disappointing returns for investors and negative free cash […]

Why Oil No Longer Rules The Stock Market

Things are looking pretty good for the average American investor at the moment, with the S&P 500 still taking out new highs and a 27.3 percent YTD gain rivalled only by Russia’s RTS Index 39.2 percent return over the timeframe on the global arena. Rising stock valuations are awesome for investors holding stocks in their […]

Aramco Reaches $2T Goal

Saudi Aramco jumped for a second day, pushing the oil giant’s value beyond the $2 trillion mark that alienated global investors and potentially making further share sales abroad more difficult. The stock climbed by the daily 10% limit to 38.7 riyals at the open in Riyadh before trimming gains. It rose 9.4% to 38.50 riyals […]

Saudi Aramco shares surge 10% as historic IPO begins trading

Saudi Aramco, the world’s largest initial public offering (IPO), surged past expectations as it debuted on the country’s stock exchange on Wednesday morning. Shares of the state-owned oil company rose to 35.2 Saudi riyals ($9.38) from 32 riyals in early deals in Riyadh, up 10% and hitting their daily limit. The price gives it a valuation […]

Billionaires Circle Distressed Assets in U.S. Oil and Gas Patch

Billionaires are circling the distressed U.S. oil and gas patch, looking to pick up assets on the cheap at a time when the state of the industry is scaring off other investors. Sam Zell has teamed up with Tom Barrack Jr. to buy oil assets in California, Colorado and Texas at fire-sale prices from companies […]

Goldman: Go Long On Fracking

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 […]

Why Banning Fossil Fuel Investment Is A Huge Mistake

Activist global warming strategies have now caused the European Investment Bank to ban its fossil fuel project funding. After more than a year of internal and external lobbying by several EU member states and an ever-growing list of activist NGO and pressure groups, the EIB has decided to cut its financial support for all new […]

Why Even Saudi Aramco Is Now Talking About ‘Peak Oil’

The world is turning its back on oil. But how quickly? Technological advances in renewable energy and electric cars, accelerated by the threat of climate change, could mean the world’s thirst for petroleum tops out sooner than companies such as Exxon Mobil Corp. or Saudi Arabia’s Aramco are banking on. “Peak oil” once signified the […]

The Aramco IPO’s internal dynamics

Domestic only—the key aspect of Aramco IPO The state energy giant’s decision to proceed with a share sale is no surprise, but the lack of an international listing is a crucial point “A significant milestone in the history of the company and important progress towards delivering Saudi Vision 2030”. Thus Yasir al-Rumayyan, chairman of state-owned […]

Saudi Arabia Will Compromise on Valuation to Make Aramco IPO a Success

Saudi Arabia will compromise on valuation to ensure the initial public offering of Aramco is a success. The Kingdom is ready to accept less than the $2 trillion Crown Prince Mohammed bin Salman has long insisted the state oil giant is worth. Bankers will instead target a valuation of $1.6 trillion to $1.8 trillion after […]

Saudi Crown Prince Gives Green Light for Aramco IPO

Saudi Crown Prince Mohammed bin Salman finally gave the go-ahead for the initial public offering of Aramco, deciding there’s enough support from local investors for what’s likely to be a record share sale. The crown prince made the decision at a meeting he chaired on Friday and an official announcement is likely as soon as […]

Oil majors struggle to counter Extinction Rebellion narrative

Oil companies are squarely in the aim of Extinction Rebellion’s campaign against fossil fuels, and they are struggling to find a response. Instead of running away when confronted by climate change activists, it is time the industry’s top executives from companies such as BP, Shell and Total provided these campaigners with some hard economic facts […]

I Feel It Coming – Natural Gas Exports To Mexico Swell, But Is a Tidal Wave Coming?

For some time now, natural gas producers in the Permian and the Eagle Ford have been counting on rising pipeline exports to Mexico to help absorb a lot of the incremental production in their plays. Their hopes have been bolstered in the past couple of years by the build-out of a number of new pipelines […]

The Legacy of T. Boone Pickens

Billionaire oilman T. Boone Pickens passed away a few weeks ago, and this week’s episode of Industry Focus: Energy dives deep into the legacy he left behind. Analysts Nick Sciple and Jason Hall talk about some of the many aspects of Pickens’ life, from the culture shift he pioneered in investing to his philanthropy and […]

Final Collapse Is Inexorable

This week central planners pursued their primary mission with steadfast conviction.  They planned.  They prodded.  They prearranged tomorrow to save us from ourselves.  Some also grubbed a little graft for their trouble. Other central planners took to debasing the dollar to price fix the federal funds rate within a narrow band of tolerance.  What in […]

Speculators Are Abandoning Oil

1. China’s bauxite imports surge – There are concerns that Indonesia might put a ban on bauxite exports, the raw material used for aluminum production, following restrictions on nickel exports. Nickel prices recently spiked. – “While such a development would support bauxite and in turn aluminum prices, it would be less impactful for China than […]

UC System Announces Divestment From Fossil Fuels

The University of California system has announced its intention to completely divest from fossil fuels.  Officials in charge of investments insist that their decision to move toward more “sustainable” and environmentally conscious investments is simply in the practical interest of beneficiaries, rather than a product of political opinion. In an opinion piece in the Los Angeles […]

Oil Prices Jump Most on Record After Saudi Arabia Strike

Oil posted its biggest ever intraday jump, briefly surging above $71 a barrel after a strike on a Saudi Arabian oil facility removed about 5% of global supplies and raised the specter of more destabilization in the region. In an extraordinary start to trading on Monday, London’s Brent futures leaped almost $12 in the seconds […]

T. Boone Pickens, a Texas oil tycoon who led legendary corporate raids, dies at 91

T. Boone Pickens, a shrewd, publicity-savvy Texas oil tycoon who helped usher in the era of hostile takeovers and corporate “greenmail” in the 1980s, and who later became an influential voice on environmentally sound energy policy, died Sept. 11 at his home in Dallas. He was 91. His death was announced by his spokesman Jay […]

Crude Oil: Up And Down And Going Nowhere

Summary Trading in a range. A tightly coiled spring. The trade war holds the key. Oil-related equities lag the market. UCO and SCO continue to offer an opportunity to grind profits. I do much more than just articles at Hecht Commodity Report: Members get access to model portfolios, regular updates, a chat room, and more. […]

Pessimism, Possible ‘Takeunders’ on the Oil Industry Horizon

BP Plc agreed to sell its entire business in Alaska to closely held Hilcorp Energy Co. for $5.6 billion, ending a six-decade presence in the state as oil production there declines. Tom Loughrey, president of Friezo Loughrey Oil Well Partners, and Mark Rossano, founder & CEO of C6 Capital Holdings, talks with Bloomberg’s Alix Steel […]

Aramco IPO Could be Heading to Asia

Grand scale (ad)ventures or Mega Projects have been making headlines for decades, while looking at Dubai, Doha or Riyadh. Still, the Aramco IPO story, proponed by Saudi Crown Prince Mohammed bin Salman, beats them all. The battle for a stake in the oil world’s largest cookie-jar, Saudi Arabia’s national oil company Saudi Aramco, keeps fueling […]

Why Saudi Arabia Needs An Aramco IPO

At the start of the year, hopes and expectations were that the US and China would come to a relatively speedy resolution on trade and the world economy would be set once again on a moderate path of expansion. These hopes have been repeatedly disappointed. Instead the failure of negotiations has seen the US escalate […]

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LATEST NEWS HEADLINES

• US Oil Export Story Has Really Just Started
• A Middle East Financial Crisis Is In The Making
• Arabs should welcome a future with less oil wealth
• The Possibilities and Limitations of Geothermal Energy
• IEA Cuts Global Oil Demand Forecast on Coronavirus

• Global Witness Accuses Exxon of ‘Exploitative’ Contract That Robs People of Guyana of $55 Billion in Lost Oil Revenue
• China to Lower 2020 Economic Growth Expectations On Coronavirus Outbreak
• Where Did The Prosperity Go?
• The Price of Oil: How Demand is Becoming a Major Factor
• Citi sees oil plunging as much as $18 on Coronavirus fears
• Peak Permian Oil Production May Arrive Much Sooner Than Expected