Energy

5 August 2016

Conditions now Could Set Up Higher Oil Prices Later

Another oil price downturn threatens to deepen the plunging levels of investment in upstream oil and gas production, which could create a more acute price spike in the years ahead. Oil and gas companies have gutted their capex budgets, necessary...

25 July 2016

September Oil is Losing a Technical Battle

Today's 2.5% fall in the September light sweet crude oil futures contract extends the decline that began on June 9.  It is the third consecutive loss and the fifth loss in the past six sessions.  There are two important points...

19 July 2016

Lithium’s Run is Likely not Over

  So far, lithium has been the hottest metal of 2016, beating out gold, with exponential demand expected over the coming years. Although the price trajectory of the metal has been subdued in recent months, the fundamentals behind the long-term...

12 July 2016

(Re) Calling All Oil Workers

The rig count has rebounded from the lows seen in late May; a small indication that oil companies in the U.S. could begin drilling anew. Shale drilling is a short-cycle prospect, requiring only a few weeks to drill and bring...

11 July 2016

More Rigs could be the Oil Rally’s Greatest Foe

  In an industry where anything could happen, surprises—often unwelcomed—are hard to come by. Oil is exactly such an industry at the moment. No one is sure where oil is heading, near-term forecasts range from $20 to $80 per barrel by the end of...

7 July 2016

Don’t be so Quick to Judge Nuclear Power

Let us for a second imagine a world without nuclear energy. That is a tough one but let us try. No nuclear bombs, of course, no Chernobyl and Fukushima, no worries about Iran and North Korea. A wonderful world, maybe?...

22 June 2016

An Oil Drilling and Service Catch 22

The impact of rising oil prices on North American light tight oil (LTO) production is said to be a “Catch 22”, the title of Joseph Heller’s popular 1961 novel set in WWII. The premise was you could get out of...

15 June 2016

Uranium Bottom: Are We There Yet?

With prices set to double by 2018, we've seen the bottom of the uranium market, and the negative sentiment that has followed this resource around despite strong fundamentals, is starting to change. Billionaire investors sense it, and they're always the...

14 June 2016

Oil Slips off an 11-Month High

Oil prices reached their highest level in eleven months in the middle of last week.  The front-month futures contract did not post a key reversal on June 9, but the continuation contract did.  Since reaching almost $51.70, prices have pushed...

8 June 2016

Nearly Double the Price, but Only Halfway Back

With today's gains, the price of Brent has nearly doubled from its lows in January.  Of course, the price of oil is still less than half of levels that prevailed two years ago.  At the same time, many leveraged investors...

7 June 2016

How could Fossil Fuel Divestment be Bad?

The global divestment movement is gaining steam. This involves investors like city councils, pension funds and universities publicly withdrawing their assets from coal, oil and gas companies – those that produce fossil fuels. The global divestment movement is gaining steam. This involves investors like city councils, pension funds and universities publicly withdrawing...

6 June 2016

OPEC: Higher Prices, but not Higher Hopes

Just a couple months ago, some were declaring the old oil order dead after the Organization of the Petroleum Exporting Countries (OPEC) failed to agree on coordinated action at its April meeting in Doha. Just a couple months ago, some were declaring the...

1 June 2016

OPEC Meeting: I’ve Got Expectations in Low Places

OPEC ministers meet in Vienna tomorrow. Expectations could hardly be lower.  Attempts to agree on an output freeze were stymied by the Saudi's insistence that is rival Iran participates as well.  Iran cannot agree to limit its production yet, or...

26 May 2016

Oil, Lithium, and the Global Energy Situation

The energy sector was certainly a bargain in January, but no one really knows where oil will be around Christmas. While we may have already seen the bottom, stock prices are not the bargain they were.  There are other plays....