The Biggest Threat To Western Oil Majors

The international oil market is composed of two types of companies: International Oil Companies (IOC) and National Oil Companies (NOC). The former are Western firms with their origin often linked to the colonial past such as BP and Royal Dutch Shell. NOCs, on the other hand, were founded in a wave of nationalism in the […]

The Bailout Bonanza is Back!

  The emphasis has to be on HOG as they squeal for corporate welfare and push their snouts into the trough. One hedge hog says the government needs to bail out all businesses by paying all wages so companies that depleted all cash don’t have to pay to retain all workers:   Bill Ackman✔@BillAckman Mr. […]

The Best Day In The History Of Oil Markets

Crude oil just had its best day ever, only a day after its third-worst drop in history. West Texas Intermediate jumped more than 23% to $25.22 a barrel on Thursday. However, it remains on track for its worst monthly decline on record as a supply glut and demand concerns keep oil investors on edge. Three […]

How will oil and gas companies solve the energy trilemma?

The price of oil is dependent on supply and demand – with the latter being more significant at present. Notice that the price of petrol has fallen over the last month? This is directly related to the coronavirus outbreak, which has led to fewer people travelling, and subsequently less demand for petrol, diesel and aviation […]

Spectacularly wrong: Why Wall Street doesn’t understand the corona virus

Investment professionals on Wall Street spend their days reading financial reports and looking at numbers flash on screens. These numbers record the moment-to-moment changes in the collective wisdom of markets about the value of stocks, bonds, commodities and a distressing array of derivative financial products. From the comfort of the sealed caverns of Wall Street […]

The Great American Shale-Oil Bust Turns into Massacre

Shares of shale oil drillers collapsed by 25%-50% today. Their bonds got massacred. Saudi-Russia price-war strategy appears successful in wiping out investors in the US shale-oil sector. It was so chaotic and brutal in the crude oil market today that the EIA, which is part of the US Department of Energy, emailed out a statement […]

The Things That Matter Don’t Change

Summary There is gravity to the coronavirus and the possibility to spread and infect populations around the globe. The coronavirus points to the clear danger of concentrating manufacturing supply chains in one country. As the U.S. downsizes its navy and withdraws from being the world’s policeman, the transport of oil to where it’s needed will […]

Scarcity and growth: Our world’s contradictory terrors

In 1933, ground-breaking British economist John Maynard Keynes wrote: “[Individualistic capitalism] doesn’t deliver the goods. In short, we dislike it and we are beginning to despise it. But when we wonder what to put in its place, we are extremely perplexed.” At that time, the world was deep in the Great Depression. But it is […]

Eni says its oil and gas production will peak in 2025

Italian energy group Eni said its oil and gas production would peak in 2025 as the energy company pledged to cut its greenhouse gas emissions by 80 per cent by 2050. The latest set of climate pledges by a European energy major come as the industry is under intense pressure from investors and climate activists […]

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 […]

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