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...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...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...Oil company buyers and sellers in the deepwater Gulf of Mexico after BP
$20 billion is a chunk of change even for BP (BP). You can bet that a lot of oil company CEOs are trying to figure out if they can afford to keep drilling in the Gulf of Mexico (whenever that’s possible again.) If the $20 billion fund that BP has agreed to put aside...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...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...With others cutting back on capital spending, ExxonMobil plans to spend more
ExxonMobil (XOM) goes its own way. Again. When oil prices were soaring in 2006 and 2007, ExxonMobil refused to get sucked into a race to see who could spend more on exploration. Now that everyone else is cutting back on capital budgets (and some companies such as...Update Encana (ECA)
EnCana (ECA) formalized its split into two companies when it began trading as EnCana (ECA) and Cenovus Energy (CVE) on the New York Stock Exchange on December 9. Shareholders in EnCana received one share of the new EnCana and one share of Cenovus for each share of the...Shut out in Iraq: The country's oil goes to everybody but the U.S.
All that blood and no oil? Even if you don’t believe that the Iraq war was all about oil, the results of that country’s auction for the right to explore and develop its huge oil reserves were shocking: U.S. companies were just about shut out in the results announced...ExxonMobil buys U.S. natural gas for $31 billion–I told you this was a big trend
ExxonMobil (XOM) will buy XTO Energy (XTO) for $31 billion in stock. (ExxonMobil will also assume $10 billion in XTO Energy debt.) This acquisition is just the latest example of a shift among the international energy majors from exploration and development for oil in...The return of the oil shortage–around 2015–and why the industry's logical decisions now will make it worse
Devonshire Energy’s decision to sell its expensive to develop deepwater assets in the Gulf of Mexico in order to concentrate on its onshore natural gas reserves makes perfect sense. For that company. For the oil industry and for the global economy picture, though,...The short and the long of oil
Same day, November 12. Two different reports. Two different views on oil. First, the U.S. Energy Information Administration: There’s a glut of oil. Domestic crude inventories rose 1.8 million barrels to 338 million barrels in the week ending on November 6. That was...The natural gas glut in the U.S. shows no signs of slowing production
Doesn’t anybody know that there’s a natural gas glut in the United States? In a glut low prices are supposed to force producers to shut wells and reduce production so that demand has a chance to catch up with supply and prices can start to rise. It just doesn’t seem...Buy Statoil Hydro (STO)
Norway’s next oil frontier just got a little closer–and there’s only one stock to play it. I don’t follow Norwegian politics very closely so you’ll have to forgive me if I’ve been a little slow on the uptake. The re-election of...Sell ExxonMobil (XOM)
When I added ExxonMobil (XOM) to Jubak’s Picks on December 23, 2008, I thought it was a reasonable way to balance risk and reward. The stock was a good way to reach for some upside return in case the global economy—and oil prices—rebounded more quickly than I expected...Update ExxonMobil (XOM)
I think this quarter marks an important transition for oil stocks. What everybody knows—the consensus wisdom that is baked into stock prices–has moved on. Everybody now accepts that oil prices will be low enough so that oil company earnings will look terrible in...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....Next week it's oil, oil and more oil earnings. To know where the industry is going, forget profits and look at capital spending
Exxon Mobile (XOM). Chevron (CVX). Royal Dutch Shell (RDS.A). BP (BP). ConocoPhillips (COP). Noble Energy (NBL) Apache (APA). Petro-Canada (PCZ). All these production companies report quarterly earnings next week. Add in drilling equipment and oil service companies...Jim’s Daily Email Alerts:
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