Category: Energy Resources
The analysis published under this category are as follows.
Monday, June 23, 2008
China Raises Fuel Prices: Is this the End of the Oil boom? / Commodities / Energy Resources
By: Money_and_Markets
Last Thursday, China roiled the oil market, announcing it would raise gas and diesel prices by about 46 cents per gallon in order to reduce demand. In a matter of minutes, oil prices skidded lower.
Before you knew it, America's TV news and finance channels were all over the story. They asked the burning question, "Will higher prices and lower demand in China kill this great bull market in oil?" And they presented a seemingly endless parade of oil bears and stock bulls who almost unanimously proclaimed that oil prices were about to crater.
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Wednesday, June 18, 2008
Solar Sun Spot Cycles Impact on Crop Yields, Energy Use and Weather Patterns / Commodities / Energy Resources
By: Joseph_Dancy
Last month we listened to Donald Coxe's weekly presentation to institutional investors. Coxe is the Chairman and Chief Strategist of Harris Investment Management. He has been a bull on the commodity markets for some time now and has correctly pointed out numerous investment opportunities in the energy, metals, and grain markets.
We were surprised when he mentioned the historical nature of the solar cycle and its' potential impact on global weather patterns and the agricultural sector. Most of the time Coxe he restricts himself to ‘worldly' indicators of supply and demand. Apparently an article on the subject recently appeared in Investor's Business Daily.
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Wednesday, June 18, 2008
Energy Sector Strong Bullish Trends Due to Demand Growth Fundamentals / Commodities / Energy Resources
By: Joseph_Dancy
The price of crude oil hovered around $100 a barrel last month, while natural gas futures pushed toward $10 per thousand cubic feet. Both are impressive due to the fact we are in ‘shoulder season' – a time when moderating weather tends to weaken prices. Long term demand and supply trends remain powerfully bullish. Last month the following events occurred in the energy sector:Read full article... Read full article...
Monday, June 16, 2008
New Socio-Economic Era Dawning Out of Credit and Fuel Crisis / Commodities / Energy Resources
By: Brian_Bloom
Several weeks ago this analyst expressed the view that the US Equity markets were in the early stages of a Primary Bear Market and that investors should be more focused on capital preservation than on capital growth.
In hindsight, I continue to hold this view. The core issue seems to be that banks (led by Citigroup), in moving to bring off-balance-sheet items back onto their balance sheets, will likely expose the weaknesses in those balance sheets in the process; and there will likely be a deterioration in their ability/willingness to lend. Additionally, for reasons set out in the body of this article, it seems that the US Fed's ability to create money “out of thin air” is also waning. On balance, it seems that a higher reliance will be placed on equity than on debt in the capital markets. Where will this equity come from? Between them, the BRIC countries and OPEC may have up to $5.8 trillion to invest.
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Sunday, June 15, 2008
Global Economic Growth Drives Energy Sector Demand Upward / Commodities / Energy Resources
By: Joseph_Dancy
As the cost of crude oil has soared in recent years, the amount produced hasn't kept pace with demand. Worldwide oil production has barely budged, despite record prices. Since 2004 the price of oil has gone from $33 per barrel to $132 – meanwhile production has risen just 1.8 percent, to 84.6 million barrels per day. Read full article... Read full article...
Friday, June 13, 2008
Energy Stocks that Will Profit from Widening of the Crude Oil Crack Spread / Commodities / Energy Resources
By: Keith_Fitz-Gerald
Here at Money Morning over the past six months, we've talked a great deal about oil and gasoline prices. We've offered our predictions about how high those prices were going , and have detailed a number of investment opportunities - chosen as much for their margins of safety as for their profit potential.
This time we're going to detail three energy stocks with the potential for double-digit - or even triple-digit - profit gains. Admittedly, these are longer-shot, speculative plays. But we used a special energy indicator to help ferret out these energy plays.
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Thursday, June 12, 2008
Crude Oil Rising, Clean Energy Reversing? / Commodities / Energy Resources
By: Mike_Paulenoff
When I look at the daily chart of crude oil, now it appears that a new upleg
is in progress with a target of ... $150? ... $160? ... who knows? What is
really interesting to me now is the potential geopolitical connections that
could be the underlying reasons why crude just never sustains lower prices
for very long.
It seems to me from what I have been reading that the three leaders around
the globe who are in trouble are Bush, Olmert, and Ahmadinejad. And all
three could be looking at confrontation as a way to save their presidencies,
and/or to try to ensure that their political party remains in office.
Confrontation?
Friday, June 06, 2008
Geothermal: A Hot New Power Source / Commodities / Energy Resources
By: Jennifer_Barry
As the global economy attempts to wean itself from dependence on oil, it will search for viable alternatives. Unfortunately, there is no magic bullet on the horizon that will replace petroleum. The solution for the next few decades will be a patchwork quilt of different technologies. The “alternative” energy sources like solar and wind are non-polluting, but they have serious limitations. While nuclear power will be important, it will not be the best solution for all energy needs. Read full article... Read full article...
Tuesday, June 03, 2008
Higher Oil Bullish for Clean Energy? Not Necessarily! / Commodities / Energy Resources
By: Mike_Paulenoff
One would think that if crude oil were about to spike to $150/bbl or higher,
that the "clean energy" portfolio, otherwise known as solar stocks, would be
a bit more buoyant, right?
However, let's notice that just the opposite situation has developed: the
PowerShares Clean Energy Portfolio (AMEX: PBW) looks vulnerable to a
nose-dive towards the 20.00 support area (another 10% on the downside from
current levels)!
Monday, May 19, 2008
Energy Sector: Crude Oil Demand from China , India , Rockets Upward / Commodities / Energy Resources
By: Joseph_Dancy
Long term supply and demand trends continue to keep energy prices elevated. The easiest to locate and cheapest oil to produce on the global scale has been for the most part found. Many of the major older fields are in decline. New production tends to be more expensive to develop, and access to potential fields is increasingly restricted by nationalistic concerns as governments try to control resources to benefit their own citizens. In many areas a shortfall of drilling and production equipment exists. Read full article... Read full article...
Saturday, May 10, 2008
Government Energy Plan Political Pandering / Politics / Energy Resources
By: Mike_Shedlock
Whenever Congress puts together a bill attempting to find a solution to some sort of real or imagined problem, my immediate thought is that the bill do one of four things:
- It will worsen the problem at hand
- It will do nothing to solve the problem but instead create a new problem somewhere else
- It will worsen the original problem and create new problems
- In the very best case it will do nothing at all
Friday, May 09, 2008
Soaring Gasoline, Diesel, and Crude Oil Prices / Commodities / Energy Resources
By: Zeal_LLC
Gasoline, usually taken for granted, is weighing heavily on consumer sentiment today. In the States, the AAA just reported that retail gas soared to an average of $3.65 per gallon nationwide! This all-time record high is motivating Americans to drive less, drive slower, and migrate to more efficient cars to save fuel.
As a student of the markets, I find gasoline fascinating. The impact of its pricing creates far-reaching ripples throughout the entire economy. And since transportation is such a basic necessity of life, everyone monitors gas prices on a regular basis. It is fun to watch and analyze such a widely-followed market.
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Friday, March 28, 2008
A New Era in the Energy Sector / Commodities / Energy Resources
By: Joseph_Dancy
Last month we delivered a lecture at Southern Methodist University to our Oil & Gas Law class on the 'New Era of Oil: The Age of Scarcity'. This is not a standard law school topic, but relevant when discussing the legal history and development of market demand prorationing, allowables, and conservation regulations. Read full article... Read full article...
Monday, March 17, 2008
UltraShort Crude Oil & Gas ETF on the Move / Commodities / Energy Resources
By: Mike_Paulenoff
As of this moment, the Jan-Feb lows at 34.69 and 35.52 represent a potentially major double-bottom in the DUG that has the power to thrust prices towards the 46.00-47.00 resistance (breakout zone). Initial resistance hovers along the declining 200 DMA, now at 43.33. Any weakness from current levels must hold 40.00 to preserve today's near-term upside breakout at 41.20/50.Read full article... Read full article...
Saturday, February 23, 2008
Energy Sector Peak Oil Trends Paint “A Very Alarming Picture” / Commodities / Energy Resources
By: Joseph_Dancy
While energy demand may be tempered by a slowdown in global economic growth, longer term growing energy demands and supply constraints will continue to present incredible challenges. Much more capital will need to be allocated to the sector to address supply issues, which should create opportunities for investors. We noted the following developments in the energy sector last month:Read full article... Read full article...
Tuesday, February 19, 2008
Large Potential Albanian Oil and Gas Discovery Underscores Kosovo's Importance / Commodities / Energy Resources
By: Stephen_Lendman
On January 10, Swiss-based Manas Petroleum Corporation broke the news. Gustavson Associates LLC's Resource Evaluation identified large prospects of oil and gas reserves in Albania, close to Kosovo. They're in areas called blocks A, B, C, D and E, encompassing about 780,000 acres along the northwest to southeast "trending (geological) fold belt of northwestern Albania." Read full article... Read full article...
Sunday, January 13, 2008
Energy Sector Stunning Demand and Production Trends & Developments / Commodities / Energy Resources
By: Joseph_Dancy
While we did not see triple digit crude oil prices in the futures market last year we remain optimistic the energy sector will perform well in 2008. Growing global energy demands will continue to present challenges to the market.
Several graphics we ran across last month illustrate the major issues in the energy sector. The chart at right from an article in the Financial Times illustrates that the use of fossil fuels has correlated very closely with economic growth over the last 185 years.
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Sunday, January 06, 2008
Energy Stocks Undervalued as Crude Oil Targets Beyond $100 During 2008 / Companies / Energy Resources
By: Roger_Conrad
Is energy cheap or dear? Oil prices cut above the once-unthinkable level of $100 a barrel for the first time ever this week. One of the biggest questions as we move into 2008 is what kind of impact that will have on the wider markets and the US economy. Since oil bottomed in the late 1990s, both market and economy have survived successive milestones in its rise, despite forecasts of disaster every time a new one was reached. Last year, however, crude prices reached new territory by breaking past their '70s highs in inflation-adjusted terms. At the same time, the collapse of the US housing industry and mortgage market began to stoke US recession worries in earnest.
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Tuesday, December 25, 2007
Electrifying America : Social Meanings of a New Technology - Book review / Stock-Markets / Energy Resources
By: Joseph_Dancy
Commonly taken for granted in today's society, a century ago the electrification of modern lighting and home and industrial activities was cutting edge technology. Other than those brief periods when an ice storm or summer thundershower disrupts service, few tend to remember how extensive and relatively recent the changes in our lives that electricity has provided.Read full article... Read full article...
Friday, November 30, 2007
Afghanistan - A Crude Oil War Of Revenge / Politics / Energy Resources
By: Mike_Whitney
The United States is on its way to losing the war in Afghanistan. The eventual defeat will be political not military. Public sentiment is shifting in Europe. The people have had enough. They want to get out. When European troops withdrawal from Afghanistan; NATO will gradually unravel and the Transatlantic Alliance will collapse. That will be a disaster for America. The US will again be isolated by two great oceans. But not by choice. America's days as an empire will be over.Read full article... Read full article...