Higher production and lower capital spending–that’s the picture from U.S. oil shale producers
The earnings reports from U.S. oil shale producers are painting a very uniform picture so far: Production was up in the second quarter; capital spending budgets will be reduced for the remainder of 2017; and despite those capital spending cuts production is expected...
Seadrill gets a huge bounce on refinancing story
Update October 4. The New York traded ADRs of deep-water drilling specialist Seadrill (SDRL) are up huge this morning on reports that the company’s largest shareholder (at 23%), John Fredriksen, is willing to lend the rig company as much as $1.2 billion. The...
U.S.oil and gas rig count inches up again–it’s not enough to lift the drilling sector–yet
The total number of oil and natural gas rigs operating in the United States rose by 11 to 522 in the week ended September 30, according to Baker Hughes. That follows on last week’s increase of 5 rigs in operation. The bulk of the pick up came in oil rigs where...
SeaDrill
When I posted my most recent update of my Dividend Income portfolio https://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...So who's next for an acquisition in the oil drilling sector?
My two conclusions from the Ensco (ESV) bid to buy Price International (PDE). First, the Deepwater Horizon disaster in the Gulf of Mexico has put a big premium on owning the newest deep-water drilling rigs. The theory is that with regulatory scrutiny getting tighter...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...There's a U.S. oil boom–in North Dakota–and here's how to invest in it
It looks like the biggest winner from the boon in natural gas production from shale formations in the United States will be the U.S. onshore oil industry. Thanks to new techniques pioneered in the late 1970s to extract natural gas from tight shale formations from...New rules that will change the game for deepwater drillers
(I’m on vacation until August 24. From now through Friday August 13 I will be posting on a reduced schedule of once or twice a day on Jubak Picks. The site will go completely dark from August 13 to August 24 and then I will resume my normal schedule of posts.)...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)....Deciding which company pays what in the Gulf disaster just got a little harder
A setback today for Anadarko Petroleum (APC) in its efforts to get out from under the costs of the Deepwater Horizon disaster. The company is a 25% partner with majority stakeholder BP (BP) and minority partner Mitsui (10%) in the Macondo well that continues to spew...And now the spill in the Gulf is changing oil drilling in Norway–the effects really are global
The ripples from the Deepwater Horizon disaster in the Gulf of Mexico have reached Norway. Norwegian opponents to opening the fragile ecosystems around the Lofoten Island with their critical spawning grounds for cod to oil drilling are arguing that Norway needs to...The Gulf oil spill is so bad that maybe, just maybe, energy legislation is alive again
You knew this was coming once BP (BP) admitted that the top kill effort to stop the flow of oil in the Gulf of Mexico had failed. On Tuesday June 1 U.S. Attorney General announced that the Justice Department has opened a civil and criminal investigation into BP and...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....BP's "top kill" looks like it's working to stop the flood of oil in the Gulf
First good news from the Gulf of Mexico in ages. A number of news sources are reporting that the “top kill” effort to stop the flow of oil from the Deepwater Horizon well has succeeded in blocking the well. There’s no official announcement of “success” but the federal...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...First, let's liquidate all the cash cow oil companies
The sky is falling. Apocalypse is around the corner. It’s the end of civilization as we know it. ConocoPhillips (COP) is going to simply close up shop liquidate its assets, and distribute them to shareholders. I wish. It would be cheery to see a CEO admit that the...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....The trends still point to $200 a barrel oil–even if when remains a bit unclear
Whatever happened to $200 a barrel oil? Maybe it’s just been delayed in transit. A recession in the world’s developed economies can do that. Remember Arjun Murti’s time in the sun when, back in May 2008, the analyst at Goldman Sachs predicted that oil would soon hit...Sell GulfMark (GLF)
I’m going to take my own advice (see my post https://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...Jim’s Daily Email Alerts:
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