All Blog Posts (384)

Future Of Shale Revolution Driven By Private Equity Money

by G. Allen Brooks

Last Tuesday, we attended two interesting meetings in Houston at which the role of private equity in the energy sector was highlighted.  It was evident after listening to the five private equity investors who presented at these meetings that each sees continued opportunities to deploy capital in the energy business, but they all acknowledge that the industry’s outlook has changed materially over the past nine months and that the industry is not likely to return to…

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Added by Keith Mauck, Publisher on April 21, 2015 at 8:20am — No Comments

Three Years Ago

Just about three years ago, on April 19, 2012, the prompt-month (see Note 1) natural gas futures contract closed at $1.91 per mmBtu, a twelve year low.  On April 9, 2015, the prompt-month contract closed at $2.53 per mmBtu.  

Are natural gas prices higher now, in April 2015, than they were in…

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Added by Jim McDonnell on April 14, 2015 at 7:30am — No Comments

Falling Rig Counts But Sustained Output – Change Coming?

Like many in this industry, we spend a lot of time looking at the weekly data seeking a clue to the end of the industry’s current down-cycle and the start of the next up-cycle.  Throughout our career we have watched weekly data series become a cause célèbre for forecasters.  In the past, it might have been weekly Baker Hughes (BHI-NYSE) rig count numbers, natural gas storage injections or withdrawals, oil storage volumes, weekly gasoline production figures, gasoline pump prices, or possibly…

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Added by Keith Mauck, Publisher on April 13, 2015 at 9:05am — No Comments

Does Natural Gas History = $10 A Barrel Oil In Our Future?

The news is full of claims and predictions about where crude oil prices are headed, and how soon they will get there.  Remember the admonition to economists: forecast often but only give a price with no date, or a date with no price.  As oil prices have rebounded during the past two weeks, we continue to see forecasts claiming the U.S. is headed for oil prices somewhere between $20 and $10 a barrel.  The analysis behind these forecasts relies on the recent history…

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Added by Keith Mauck, Publisher on March 10, 2015 at 8:30am — No Comments

Exclusive Interview With Marathon Oil

Wade, You Spoke At The 2014 Woodford Oil Congress, And We Are Delighted To Have You Join The Executive Speaker Line Up Once Again. Why Would You Recommend Your Peers In The Industry Attend The Congress In January 2015?

The congress is a great opportunity to…

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Added by Jamie Burton on January 14, 2015 at 11:08am — No Comments

Embrace domestic energy production

Today's headlines — Ebola, Ukraine and ISIS — are fearsome. Yet amid the bad news, there is hope for greater U.S. security through energy. 

Gone are the days of stressing over OPEC and oil-supply disruptions; that 40-year nightmare is over. Today, we're experiencing an oil and natural gas boom that promises to strengthen the country. 

Rising U.S. crude production generates huge economic benefits. Oil…

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Added by Keith Mauck, Publisher on January 13, 2015 at 9:31pm — No Comments

Are Crude Oil and Natural Gas Reconciling?

Crude oil prices have dropped 38% since June for two reasons.  Shale oil production in the US Bakken, Eagle Ford, and Permian basins has increased dramatically - by more than 4 million barrels per day since 2008.  At the same time, worldwide demand for crude oil has declined as a result of slowing economies in China and Europe.  

Starting in January 2012, the US crude oil benchmark, West Texas Intermediate (WTI), bounced around $100/Bbl (dollars per…

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Added by Jim McDonnell on December 9, 2014 at 6:30am — No Comments

Alternate Fracking and Wastewater Treatment Methods

 

In researching this subject, I discovered a January 16, 2011 article featured in OilOnLine which provides an interesting alternative to conventional fracking techniques.  Virginia based PDN Mountaineer, LLC announded that they have partnered with Utah based Purestream Technology in incorporating their Trilogy system to treat and purify wastewater from their Marcellus operations.  Purestream claims to be able to alleviate the environmental impact of hydraulic fracturing by…

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Added by John W. Landman on November 17, 2014 at 2:30pm — No Comments

Is the Obama administration preemptively driving down the price of oil?

Story from The Guardian

Think about how the Obama administration sees the state of the world. It wants Tehran to come to heel over its nuclear programme. It wants Vladimir Putin to back off in eastern Ukraine. But after recent experiences in Iraq and Afghanistan, the White House has no desire to put American boots on the ground. Instead,…

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Added by Keith Mauck, Publisher on November 14, 2014 at 8:30am — No Comments

Surging U.S. Dollar Brings High Volatility in Crude Oil, Gold, Silver and Grains

Crude oil futures in the December contract rallied $.65 to finish around 78.60 a barrel after hitting multi-year lows this week at 76.00 and if you’re still short this market I would place my stop above the 10 day high which… Continue

Added by Ray @ The Crude Oil Trader on November 9, 2014 at 12:16pm — No Comments

Mark Twain: History Doesn't Repeat itself....But it Does Rhyme. Gold, Vanderbilt and more

By John Mauldin



“The significant problems that we have created cannot be solved at the level of thinking we were at when we created them.”– Albert Einstein


“Generals are notorious for their tendency to ‘fight the last war’ – by using the…
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Added by Ray @ The Crude Oil Trader on November 6, 2014 at 8:08am — No Comments

Blog Update

Featured Blogs

Goldman: Shales may attain an estimated 11%…
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Added by Keith Mauck, Publisher on November 5, 2014 at 10:05am — No Comments

Goldman: Shales may attain an estimated 11% return on $70-$80 oil

The carnage from falling global oil prices is felt throughout the stock market.  Energy producers have suffered the brunt of the damage inflicted by the 20+% drop in Brent and West Texas Intermediate (WTI) oil prices since last June, but other energy subsectors have been hurt, too.  Many of the companies significantly damaged price-wise were perceived as prime beneficiaries from continued high oil prices such as renewable energy…

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Added by Keith Mauck, Publisher on November 5, 2014 at 9:30am — No Comments

Too Much Clay? Chill Out. Why Cryogenic Fracturing May Be the Answer

Almost without exception, today’s shale wells are stimulated using water-based fracturing fluids (slickwater).  This technique is popular due to its ability to transport proppant effectively at a relatively inexpensive cost.  However, it is a magnet for criticism from environmentalists, who are concerned about the incredible volume of water needed as well as the resulting contaminated wastewater which must be treated and disposed of properly.   Water use is often cited as one of the primary…

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Added by John W. Landman on November 2, 2014 at 7:17pm — No Comments

Natural Gas Market Update

Blog 047 - image 01

The above graph looks at natural gas prices going back to January 1997.

Natural gas prices have retreated from their Polar Vortex highs and remain relatively low by historical standards.

The prices plotted above are not adjusted for inflation.  If they were in 2014 dollars, the left side of the curve would be more elevated.  In real dollars, today’s prices are lower…

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Added by Jim McDonnell on October 30, 2014 at 9:30am — No Comments

Total War over the Petrodollar

By Marin Katusa, Chief Energy Investment Strategist

The conspiracy theories surrounding the death of Total SA’s chief executive, Christophe de Margerie, started the second the news broke of his death. Under mysterious circumstances in Moscow, his private jet collided with a snowplow just after midnight. De Margerie was the CEO of Total, France’s largest oil company.



He’d…

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Added by Ray @ The Crude Oil Trader on October 25, 2014 at 8:27am — No Comments

Saudi Arabia Oil Policy Hammers Home The Austerity Case

With little fanfare, the government of Saudi Arabia has sent the oil market into a tizzy with disclosure that it is willing to live for up to two years with oil prices below $90 a barrel and possibly as low as $80.  For many oil market observers, this revelation shocked them as they were convinced, and espoused the view that the Saudis would help coordinate an OPEC production cut in order to support global oil prices in the $100 a barrel range.  That view was based…

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Added by Keith Mauck, Publisher on October 21, 2014 at 9:46am — No Comments

Will Lower Oil Prices Drive A Greater Austerity Push?

West Texas Intermediate (WTI) oil prices fell below $90 per barrel last week in response to data reflecting weakening economic activity in China and Europe.  Recent economic data for the United States has been mixed, but generally it has been more positive than negative.  That said, future economic growth is being questioned by the weaker global outlook and the announcement of the first Ebola case in the United…

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Added by Keith Mauck, Publisher on October 8, 2014 at 10:00am — No Comments

The Longest Running Water Management Event in The Rockies Returns To Denver This Month

Pressure to reuse produced water in tight oil and shale gas plays in the Rocky Mountains is ever increasing, with a recent study by Ceres showing that reusing produced water can achieve a cost reduction of 24-46% per barrel.

The program for the 4th Annual Produced Water…

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Added by Keith Mauck, Publisher on October 8, 2014 at 8:54am — No Comments

How Low Can Crude Oil Go?

Our trading partner Mike Seery is laying out his bearish view on crude oil. How low can it go?

Crude oil futures in the November contract are down $1.50 a barrel currently trading at 89.53 right near two year lows with extreme choppiness over the last several weeks with many rallies and sell offs as I’ve been sitting on the sidelines but now the trend clearly is to the downside, however the chart structure is terrible at the current time so I am not taking a short at this time,…

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Added by Ray @ The Crude Oil Trader on October 5, 2014 at 10:00am — No Comments

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