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 […]

Saudi Aramco Reports $47 Billion in Earnings, a Drop From a Year Earlier

The oil giant Saudi Aramco is prepared for an initial public offering, its chief financial officer said on Monday, reviving the prospects for a long-awaited listing that could be a major step toward diversifying Saudi Arabia’s economy. The state-owned company has been moving toward greater financial transparency as it courts international investors, and the suggestion that it was […]

Saudi Aramco IPO: ‘Fool Me Once, Shame On You, Fool Me Twice.’

Summary Aramco to be “IPO-ed in 2018.” We were “clear all along the timeframe would be 2020 or 2021.” IPO shelved due to a host of problems. KSA has to reform before an IPO. Perhaps Aramco will sell reserves to China to diversify risk. This idea was discussed in more depth with members of my […]

Peak energy, peak oil, and the rise of renewables

Global energy demand is headed toward a plateau over the next ten to 20 years, as the world focuses on electrification, energy efficiency, and more service-driven economic growth. Read more > Listen to the podcast (duration: 31:40) >

Even Boone Pickens is falling out of love with oil

Venerable oil baron Boone Pickens is giving up on oil — sort of. Less than 18 months ago, his fund launched an exchange-traded fund tracking stocks of companies expected to benefit from any increase in Brent crude oil prices. But soon, BOON — the ticker of the NYSE Pickens Oil Response ETF — will be […]

Why I’m still bullish on oil for the long run

Today I wanted to look at the world’s most important commodity: oil. I say it’s the most important commodity because, despite the huge advances made in alternative energy, it remains the single most important source of global power. Roughly one third of global energy comes from burning oil. Indeed, roughly 85% of global energy comes […]

Energy Sector’s Impact Shrinking

Oil has surged this year and energy stocks have rallied, but interest in the sector continues to shrink day by day. The weighting of energy equities within the S&P 500 is at its lowest level since at least 1990, according to Bloomberg—last standing at a mere 4.87%. That makes energy the fourth-smallest sector, ahead of […]

Aramco to Restart IPO Preparations

Saudi Arabia is restarting preparations for a potential initial public offering of oil giant Aramco, months after putting the planned listing on hold, people familiar with the matter said. Aramco, the world’s most profitable company, recently held talks with a select group of investment banks to discuss potential roles on the offering, according to the […]

Buying Into the Energy Transition

New energy’s time has come. It’s less than four years since the Paris Agreement set the long-term goal to limit the rise in global temperature to well below 2°C. Back then, the oil and gas industry had zero appetite to invest in decarbonization. Paris lit the fuse. I caught up with Valentina Kretzschmar, Research Director, […]

Is ExxonMobil Making a Strategic Mistake?

Integrated energy giants Royal Dutch Shell (NYSE:RDS-B) and Total (NYSE:TOT) have both made significant investments in the electric- and renewable-power spaces, preparing for a future with less carbon-based fuels. ExxonMobil (NYSE:XOM) isn’t following them down this road, instead redoubling its efforts on oil, natural gas, and the products they are turned into. Why is Exxon […]

Saudi Aramco allows sneak peek into its finances

The company’s mammoth $12bn global bond offering allowed a glimpse into its treasure chest for the first time The world’s focus, not surprisingly, has been on Saudi Aramco’s $111bn of net income recorded in 2018, making it the most profitable company in the world. But elements of the upstream story were largely ignored. For example, […]

Well, It’s Growing: The Shale Revolution

Summary Only 10% of shale companies had a positive cash balance for Q1’19. Mother Nature has production limits, and there is speculation that the shale industry has reached them. Having exposure to different phases of exploration helps oil companies diversify their revenue base. The U.S. is a leader in the shale revolution. EOG Resources has […]

A “Gusher Of Red Ink” For US Shale

Oil prices are off more about 20 percent in the last two weeks on growing fears of a brewing economic recession. Commodities of all types have been hammered by the pessimism. “Fear of global economic growth slowing,” said Peter Kiernan, lead energy analyst at the Economist Intelligence Unit (EIU), according to Reuters, “afflicting the entire energy […]

Physical Oil Traders Are Desperate for Crude

From Colombia to the North Sea, the Middle East to Texas, the global market for crude cargoes is becoming tighter by the week as supplies grow more constrained and risks to production spiral. Prices for actual barrels from the North Sea, Asia, and the Americas are now trading at the highest in half a decade. […]

Top Fossil Fuel & Utilities Companies Didn’t Pay Any Federal Income Taxes Last Year

Most people in the U.S. need to pay federal income taxes – but dozens of the most profitable U.S. corporations do not. A recent report by the Institute on Tax and Economic Policy finds that 60 profitable companies that are on the Fortune 500 list paid no federal income taxes in 2018. These include many […]

Chevron Backs Its Anadarko Deal

Chevron’s signed agreement with Anadarko provides the best value and the most certainty to Anadarko’s shareholders. That’s what Chevron believes, a company spokesperson said in an emailed statement sent to Rigzone late Wednesday. Chevron revealed on April 12 that it had entered into an agreement to buy Anadarko. Following this agreement, Occidental announced on April 24 […]

Aramco eclipses top earner Apple ahead of debut $10 bln-plus bond sale

Saudi Aramco, the world’s biggest oil producer, made core earnings of $224 billion last year, almost three times as much as Apple, figures from the state-owned company showed on Monday ahead of its debut international bond issue. Previously reluctant to disclose its financials, Aramco had to reveal them in order to obtain a public rating […]

Oil traders are now watching workers’ phones to spot problems at refineries

In the $40 trillion global oil-trading market, the smallest clue can be worth millions. Take the number of people working at a refinery: Outside contractors are brought in for routine maintenance or to handle accidents that could limit demand for crude oil or curb the supply of fuels. While oil companies rarely reveal such sensitive […]

Flashback: Peak Oil

Figure it was an early Christmas present for folks who still fret over America’s energy security. On November 28, 2018, the U.S. Department of the Interior released its confirmation of huge new oil and gas reserves in West Texas and running west across New Mexico and into Arizona. Officials said that formations in the Delaware […]

Oil Prices Are at Risk of Spiking as the Venezuelan Crisis Deepens

The global oil market is a delicate thing. While roughly 100 million barrels per day (BPD) move around the world, the slightest change in the level of either supply or demand can wreak havoc on oil prices. That was abundantly evident last fall, when crude prices crashed 40% after supplies outpaced demand by around 2 […]

Exxon’s Billions Could Spawn a Permian Monster

Exxon Mobil Corp. took four hours on Wednesday morning to tell investors: “Hold on a bit, we got this.” But investors aren’t in a patient mood with high-spending oil and gas companies, and Exxon’s capital-expenditure budget – summary: not much change from $35 billion a year – drew the unsurprising response. Yet, looking beyond the next couple of […]

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