Showing posts with label Keystone. Show all posts
Showing posts with label Keystone. Show all posts

Friday, January 9, 2015

Keystone XL Veto is Partisan Political Disaster for America

By Marin Katusa, Chief Energy Investment Strategist

The controversy over the Keystone XL pipeline is proof positive that American politics have gone from debate to pure partisan propaganda – at the expense of business and even common sense.  With over half a million miles of pipeline already, failing to replace that aging infrastructure only means more oil flowing via crumbling pipelines – some 50 years old – and dangerous rail cars, like the one that killed dozens in Quebec in 2013. 

NY Times Best-selling author of The Colder War, Marin Katusa, explains why President Obama’s veto of the Keystone legislation is far riskier than the pipeline itself in this riveting, short video:


For a better understanding of just how much political spin, and outright lies, now come along with news on global energy, read USA Today and Amazon.com best seller: The Colder War: How the Global Energy Trade Slipped from America's Grasp. Get a free sample chapter at www.colder war.com.



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Saturday, November 8, 2014

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 currently stands at 82.88 a barrel which is around $4 away or $4,000 risk per contract as chart structure is starting to improve on a daily basis. Crude oil futures are trading far below their 20 & 100 day moving averages as prices rose today on rumors of a Saudi Arabia explosion sending prices sharply higher at one point, however I think this is just a dead cat bounce so continue to play this to the downside making sure you place the proper stop loss risking 2% of your account balance on any given trade as the trend clearly is to the downside.

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The U.S dollar was up again this week and continues to surge to the upside and I do believe that the foreign currencies continue to move lower while continuing to pressure crude oil and many of the other commodity prices such as gold, silver, and the grain market, however every market does need a kickback so take advantage of any rally in tomorrow’s trade as I still think oversupply and a strong dollar take this market sharply lower here in the short term.

As I’ve talked about in many previous blogs I have missed this trade to the downside but one of my theories was the fact that the United States government wants lower oil prices not only to help the U.S consumer but to punish Russia which has sanctions and their whole economy is based off of strong crude oil prices so this is the double whammy to Russia and I think this will continue for some time to come.

On Tuesday the Republicans gained power in the Senate and have control in the House and that is rumored to be very bearish crude oil prices as the Keystone pipeline could now take affect which have been blocked by the Democrats and will make the United States even more oil independent and put pressure on prices in the short term as the fundamentals in this market are absolutely terrible. The volatility is very high in crude at the present time so make sure that you trade the proper amount of contracts risking only 2% of your account balance on any given trade because you need to have an exit strategy when you are wrong.
Trend: Lower
Chart Structure: Improving

See you in the markets Monday!
Mike Seery

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Tuesday, April 29, 2014

Obama’s Secret Pipeline

By Marin Katusa, Chief Energy Investment Strategist

Isn’t it odd that an 800 mile pipeline that runs across environmentally sensitive land has been permitted without any mention in the media? Not a word about it from President Obama either.

Obama’s Secret Pipeline will be built over land that’s much more sensitive than that of the Keystone XL pipeline, which gets nothing but front page coverage. It will actually be 17% (six inches) larger in diameter than Keystone XL (36 inches) and it will transport natural gas, not oil.

Bill 138

The Senate of Alaska, the state in which the pipeline will be built, has just passed Bill 138, which makes the state a partner of three of the world’s largest oil companies, including one that has a horrible environmental track record on U.S. soil. In a nutshell, Alaska’s government is now partners with BP, ExxonMobil, and ConocoPhillips.

Only one more signature is required—Governor Sean Parnell’s—and it’s expected that he will sign the deal.

Not Even the US Government Wants US Dollars

For more than 100 years, the U.S. government has been receiving a royalty and tax revenue paid on the amount of oil or natural gas produced on American soil—a fee that is paid in U.S. dollars. Bill 138 has changed this forever.

Instead of Alaska receiving its dues in U.S. dollars, the state legislature has decreed through Bill 138 that the state will be paid “in kind.” In other words, the state will be getting its share of royalty and tax revenue in natural gas instead of U.S. dollars.

For the record, this is the first time ever that a US state has entered into a partnership like this. Essentially, Alaska is now a 25% equity partner with BP, ExxonMobil, and ConocoPhillips—which also requires the state to cough up cold, hard cash to build the entire project, including the 800 mile long, 42 inch wide pipeline.

Overall, the project is currently estimated to cost north of U.S. $50 billion, and we expect that when all the capital expense overruns and government inefficiencies are accounted for, the whole project will come in at more than U.S. $75 billion, using the total costs of similar projects for comparison.

But it will be 2015 before the final negotiations and the specific details of the partnership are agreed on, and remember, the devil is in the details. Who do you think will get the better end of the deal—a bunch of government bureaucrats with zero oil and gas experience, or the world’s top oil and gas producing companies? I know whom I’m betting on.

Which leads us to the point of this weekly missive.

And the Winner of Obama’s Secret Pipeline Is…

We already know which company will be building and operating Obama’s Secret Pipeline. The company I’m talking about has a lower price to earnings (P/E) ratio and a better yield than all of its peers. That’s good, because shareholders get paid a monthly yield for owning the stock while sitting back and watching the share price rise as well.

The Ultimate Oil Toll Booth

Think of it this way: this company charges the world’s most powerful oil and gas producers for every barrel of oil that passes through its “road network,” and now it can also charge the state of Alaska. Regardless of the price of oil or natural gas, this company gets its fee.

It’s a low-risk way to benefit from a high risk enterprise. This company is a current Buy in our Casey Energy Dividends portfolio. The Energy team is currently working hard on the upcoming issue, which will in detail cover the company that’s bound to gain big from Obama’s Secret Pipeline.

I know you haven’t heard about this pipeline yet, but you will soon enough.

That’s what we do here at the Energy Division of Casey Research: We’re the first to uncover breakthrough stories, and the first to uncover the best energy investment opportunities in the world. Doug Casey and I just got back from a whirlwind European tour, where we visited many of Europe’s most promising energy projects.

Here’s a picture of Doug Casey and me at Europe’s largest onshore drill site. This drill rig is 15 stories high and uses about 16,000 liters of diesel a day to turn the drills—which Doug and I are holding in this picture. As a side note, just the crank shaft that we’re holding costs U.S. $2 million—this rig is expensive and gigantic.


For you to get a better perspective on the true size of Europe’s largest onshore drill rig, here is a picture of Doug Casey and me with our friends Frank Holmes, Frank Giustra, and Matt Smith.

(From far left to right: Frank Holmes, Doug Casey, Marin Katusa, Frank Giustra, Matt Smith)

 

Do Your Portfolio a Favor and Try Out the Casey Energy Report

Doug Casey and I have done all the hard work for you. The current issue of the Casey Energy Report is a compilation of our Europe trip, including in-depth descriptions of our site visits and a new recommendation with a hugely promising project in an out-of-the-way European country that we personally checked out. The company is backed by mining giant Frank Giustra, and you bet he knows what he’s doing.

The Casey Energy Report comes with a free one year subscription to Casey Energy Dividends (a $79 value), including, of course, the upcoming May issue with our “Obama’s Secret Pipeline” pick.

There’s no risk in trying it: You have 90 days to find out if it’s right for you—love it or cancel for a full refund. You don’t have to travel 300+ days a year (as we do) to discover the best energy investments in the world—we do it for you.

If you don’t like the Casey Energy Report or don’t make any money within your first three months, just cancel within that time for a full, prompt refund. Even if you miss the cutoff, you can cancel anytime for a prorated refund on the unused part of your subscription. Click here to get started.

The article Obama’s Secret Pipeline was originally published at Casey Research



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