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SeaDrill

SeaDrill

When I posted my most recent update of my Dividend Income portfolio http://jubakpicks.com/2012/07/03/if-you-want-to-earn-more-dividend-income-youll-have-to-put-up-with-more-volatility-what-you-want-to-avoid-is-a-permanent-impairment-of-capital/ on July 3, I promised...

5 picks for energy, the once and future sector

On January 28, I argued that the U.S. economy is still in the early recovery stage of the business cycle, and that you should overweight your portfolio toward the stocks that do best at this point in the cycle: “Sectors that do best are usually industrials, near the...

Sell Transocean (RIG)

Sometimes it doesn’t pay to be the biggest. If you’re the biggest company in the market and control capacity in your industry, that’s a license to print money when supply for your product is tight. When supply runs ahead of demand, however, the pressure is on to...

China disrupts the oil and gas industry–again

You wouldn’t think that anybody, especially an anybody as savvy as ExxonMobil (XOM), could overlook China. But that may be exactly what ExxonMobil did in formulating its plan to pin the company’s growth on natural gas—and in particular on liquefied natural gas (LNG)....

Buy Total (TOT)

  I’m sure this one is going to be popular. (Yeah, right.) Today, May 28, I’m adding Total (TOT) to the Jubak Dividend Income portfolio.  That’s right a European (gasp) oil (shudder) stock.  Total’s shares have dropped from $65 at the beginning of 2010 to $45 now....

Update Transocean (RIG)

The best you can say about Transocean (RIG) is that it has a tin ear for public opinion. The company’s public response to the Deepwater Horizon disaster in April has been to say 1) It wasn’t our fault and 2) We’re not on the hook for very much money. Even if true, and...

Sell Statoil (STO)

I’m selling Statoil (STO) on today’s bounce because the euro debt crisis has changed the medium-term fundamentals for this Norwegian oil company. As I wrote in my 12:30 May 21 post...

Update Transocean (RIG)

Transocean (RIG) is the owner of Deepwater Horizon, the drilling rig that caught fire on April 20 and eventually sank in the Gulf of Mexico with the loss of 11 workers. Those workers are still missing but presumed dead. Oil continues to leak from the well 4,500 feet...

Update Transocean (RIG)

I’m filing this update from the beach. I’m on vacation the week of March 29 to April 2. Unless the sun stops shining here in the Bahamas (or the kids decide to hire themselves out on a fishing boat), I don’t anticipate filing more than once a day for this week....

Sell GulfMark (GLF)

I’m going to take my own advice (see my post http://jubakpicks.com/2010/03/09/stocks-show-signs-today-of-having-more-fuel-in-the-tank/ ) and use this rally to sell GulfMark. I think fundamentals in the oil industry have turned, if not against, at least away from this...

Oil drilling failure rate surges at the Western majors

It’s not a factor now in the climbing price of oil but the trend certainly doesn’t portend cheaper oil down the road. Or a rosy future for the Western oil giants. In 2009 Chevron’s (CVX) drilling failure rate climbed to 35%. More than one-third of exploratory wells...

Update Transocean (RIG)

Have you got the patience to hold this one for the turn in the off-shore drilling market? It’s clear that many investors in Transocean (RIG) don’t. The stock was down 5.5% for the day (February 24) after the company yet again pushed out the recovery for its deep-water...

Update GulfMark Offshore (GLF)

Lots happening at GulfMark Offshore (GLF) over the last quarter. Much of it good. But nothing that yet indicates the decisive turn in the company’s business that I’ve been looking for. The best I can say is that it feels closer. First, at the end of October the...

Update Transocean (RIG)

No real surprises in the third quarter earnings reported by Transocean (RIG) on November 4. The company continued to stack jack-up rigs as that segment of the offshore drilling market showed continued weakness. Deep water activity continued to heat up in the waters...

Update Transocean (RIG)

When it comes to offshore oil and gas drilling rigs, it’s a tale of two markets. The market for jack-up rigs and shallow water semisubmersibles, the types of rigs used in relatively shallower water, is still taking beating. For example, in its latest fleet status...

Buy GulfMark Offshore (GLF)

Suddenly they’re hitting gushers from the Gulf of Mexico to the South Atlantic off Brazil to the west coast of Africa off Ghana and Sierra Leone. The oil from these finds will eventually become critical to global supply—once the global economic downturn is over. The...

Update Transocean (RIG)

Think of a bad quarter–or two or three or…–as a test of a company. If you are a long-term investor–and you are if you’re following my Jubak Picks 50–you see bad quarters as a test of a company’s strategy and management. What...

Update Transocean (RIG)

One robin doesn’t make a spring. And one new drilling contract with a higher price than the expiring one doesn’t make a turn in the drilling sector. But springs are built one robin at a time and turns in depressed industries begin with a single contract....