Oil Spill Continues to Dominate the Energy Scene – Commentary I commented in the last issue on some broader implications of the deadly TransOcean Horizon and Massey Mine explosions, including contrast with the first approved offshore wind farm. As a ‘confirming list’ of disturbing shortcuts, poor maintenance, fingerprinting, headlines the escalating environmental tragedy, the …
All Eyes on the Gulf of Mexico, but How about Beyond?? As failure to control the Macondo oil spill passes the six week and, possibly, half million barrel mark, frustration grows, similarly, on many fronts – with the apparent, negligence or very poor judgment which led to the explosion, with the failure of Modern Technology …
Russia Interesting that in a world of $80+ oil, Iran has added to its fleet of leased tankers, for storage of produced crude. This is consistent with the widening light heavy spreads (reflecting excess supply of lower grade product. There are anecdotes, from multiple sources, which point to buyer reluctance to purchase Iranian crude, along …
Energy Macro – Oil Spill takes Center Stage – Commentary The deadly TransOcean Horizon explosion has given way to a building environmental disaster in the US Gulf of Mexico, with potentially significant implications for a number of energy sectors. Offshore drilling has always been complex and potentially dangerous, involving high technology sensing and controls …
President Obama & Offshore Drilling – A “Nixon to China Moment?” Last week, President Obama announced, with some fanfare, a plan to open certain offshore regions (Continental Shelf from Virginia to Florida, a small area in the Eastern GOM, about 100 miles from Florida) to oil/gas exploration, while “ordering further study on others (primarily …
Natural Gas – Lots of ex-North American Activity!! In this note, I should comment on global natural gas. Despite apparent oversupply (everywhere!!), via both heavy LNG startups and relatively weak demand (Europe, Japan/Korea), the product has a very bright future. Pricing is, understandably, weak, with oil/gas ratios of 20:1 in North America, 13:1 in Europe, …
Shale Gas – The Revolution is Underway! Lastly, natural gas continues to benefit from headline opportunity. This week’s Economist highlights the global potential for shale gas, which may be in greater abundance and at lower costs than conventional gas or crude oil. Coincidentally, a Barclay’s note predicts that the Marcellus Shale (Pennsylvania/West Virginia/New York) …
Chinese Win Iraqi Project A Chinese consortium had bid $21.40/barrel to rehabilitate and manage a small oilfield in Iraq, near the Iranian border. Due to location, the Iraqi government did not want a Western company to participate. When Iraq told the Chinese bidders that they would not pay more than $2.40/barrel, the consortium hit the …
Coal Fired Power – Exit Stage Right??? State of Colorado reached a tentative deal with its largest utility, agreeing to let EXEL convert or replace up to 900 MW of coal fired capacity with natural gas. Factoid – if the bottom 15% of all coal fired plants shut down, they would reduce coal-fired carbon dioxide …
may have investment implications. While some of these will be long-dated, some vague, and others controversial, my intention is to point to trends which are underway, from a global perspective. On the premise that many of the best investments anticipate change, the series seeks to focus on issues and events whose emergence/change will create investment …