Crude oil was lower overnight as it extends the decline off last week's high. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.
If November extends this decline, the reaction low crossing at 73.08 is the next downside target. Closes above the 10 day moving average crossing at 76.10 would confirm that a short-term low has been posted.
First resistance is the 20 day moving average crossing at 75.82
Second resistance is the 10 day moving average crossing at 76.10
Crude oil pivot point for Thursday morning is 74.85
First support is Wednesday's low crossing at 73.84
Second support is the reaction low crossing at 73.08
Every Once in a While, You Find Something Amazing....Check out Trend TV
Share
Trade ideas, analysis and low risk set ups for commodities, Bitcoin, gold, silver, coffee, the indexes, options and your retirement. We'll help you keep your emotions out of your trading.
Thursday, September 23, 2010
Crude Oil Technical Outlook For Thursday Morning Sept. 23rd
Labels:
Crude Oil,
intraday,
RSI,
Stochastics
Wednesday, September 22, 2010
Irans Option In Case Of Attack On Its Nuclear Facilities
The Obama administration recently announced its plans to sell $60 billion worth of advanced aircraft to Saudi Arabia, the culmination of a deal over which negotiations began in 2007. The package will include 84 Boeing F-15 fighter jets and another 70 upgrades; 72 Black Hawk helicopters; 70 Apache helicopters; 36 Little Bird helicopters. Reports also say that Washington may include a $30 billion package to update Saudi naval forces.
A 30 day Congressional review of the deal will likely begin within the next month and the White House is touting the deal as a major boon for the US economy that will support at least 75,000 jobs in the defense industry.
The deal is also designed to cement US preeminence in the Saudi oil sector, which is under significant threat from the increasing penetrations of Chinese, Russian, and Indian carbon economy interests. Saudi Arabia has the ability to pick and choose with whom it does business given that some are saying peak oil is already upon us.
US media is suggesting that the deal means that Israel no longer finds a threat in Saudi Arabia and sees the advanced aircraft package as containment against Iran. Speaking of which, sources in the Gulf region report that Iran is preparing for a possible attack by Israel and/or the United States on one or more of its nuclear production units by stockpiling arms and munitions with its proxy militias in Kuwait and Bahrain.
We have received all kinds of back channel dialogue from the UN General Assembly gathering in New York City this week so I include a special commentary from Claude Salhani, who has been covering terrorism issues in the Middle East for quite a number of years and checks in with a column titled, "Iran's Option In Case of Attack On Its Nuclear Facilities."
By Claude Salhani
Sources in the Gulf region report that Iran is preparing for a possible attack by Israel and/or the United States on one or more of its nuclear production units by stockpiling arms and munitions with its proxy militias in Kuwait and Bahrain. Earlier this month the tiny Kingdom of Bahrain announced the arrest of 23 men whom it accused of wanting to commit acts of terrorism and plotting to overthrow the government. Bahrain may well be the smallest of Arab countries yet it contributes greatly to the overall security of the Gulf region and the Middle East. Among other things Bahrain serves as the regional headquarters to the US Navy fleet operating in the Persian Gulf.
Strategically located at about halfway up the important sea lanes in the Gulf and through which most of the world's oil is carried from extraction sites to refineries aboard super tankers, the island nation of Bahrain is linked to the Saudi Arabian mainland by a 15-mile (24 km) causeway over the azure waters of the Persian Gulf. The causeway takes one into Saudi Arabia's Eastern Province, where the largest Saudi oil fields are located. Saudi's Eastern Province is largely Shiite.
Bahrain's population of 729,000 is composed of 70 percent of Shiites and the rest are Sunni. The Sunnis hold all the top positions of power in the country, from the king on down to every major office. The Shiites, who generally feel they are treated as second-rate citizens, relate to their coreligionists in the nearby Islamic Republic. Iran periodically likes to remind the Bahrainis that their island used to belong to Iran and that the Iranians have not forgotten that.
This is a part of the world where tensions run high and conflicts can easily ignite, particularly given that all the ingredients for an explosive situation are present: oil, religion and politics. The events that unfolded in recent days in Bahrain could well serve as the foundation for a John LeCarré novel, with one exception: this was no fiction. It's real and it could represent a very real and present danger to the security of the region. The men arrested in Bahrain were said to be working for "outside forces," the term usually meant to indicate Iran. Pointing the finger directly at the Islamic Republic can prove to be a dangerous gamble. Yet that language remains clear.
The report of an attempted coup in Bahrain is something that must be taken very seriously and should send alarm sirens wailing all the way from Manama, the capital of the tiny kingdom to the corridors of power in Washington. Tehran realizes two very important facts in case of attack against its nuclear facilities: First is that if attacked by Israel and/or the United States it will be incapable of striking back directly seeing the US' domination of the skies and Israel's quasi impregnable air defense system (with US contribution).
And second, Iran also knows that it must retaliate at all costs or lose all credibility. Hezbollah, the Lebanese Shiite paramilitary movement is in a perfect position to hit Israeli towns and cities from the north and could target large centers of population as far south as Hadera and possible further. Hezbollah's arsenal includes long range field artillery and Iranian supplied medium range rockets. From the south, Hamas, the Palestinian Islamic Resistance Movement can target Israeli locations the suburbs of Tel Aviv. Hamas' artillery is more antiquated and their Qasam rockets are home made and inaccurate, though they can still cause damage and casualties.
In the Gulf, Iran supports and arms and trains Kuwait's very own Hezbollah, who in turn is believed to have been supplying training and weapons to the Bahraini Shiites, such as the 23 men who were recently arrested in Bahrain. And of course one must not forget the influence Tehran carries in Iraq, where the US still has some 50,000 troops deployed and where Iranian-backed militias would very likely go on a shooting spree.
How seriously should one take the accusations?
Iran has periodically reminded Bahrain that the island is/was part of Iran. And if attacked by Israel and/or the US Iran might decide to push the envelope, especially if they feel they have popular support on the island.
Claude Salhani is a political analyst specializing in the Middle East and terrorism
Courtesy Oil Price.Com
Watch "How To Use Fibonacci Retracements"
Share
A 30 day Congressional review of the deal will likely begin within the next month and the White House is touting the deal as a major boon for the US economy that will support at least 75,000 jobs in the defense industry.
The deal is also designed to cement US preeminence in the Saudi oil sector, which is under significant threat from the increasing penetrations of Chinese, Russian, and Indian carbon economy interests. Saudi Arabia has the ability to pick and choose with whom it does business given that some are saying peak oil is already upon us.
US media is suggesting that the deal means that Israel no longer finds a threat in Saudi Arabia and sees the advanced aircraft package as containment against Iran. Speaking of which, sources in the Gulf region report that Iran is preparing for a possible attack by Israel and/or the United States on one or more of its nuclear production units by stockpiling arms and munitions with its proxy militias in Kuwait and Bahrain.
We have received all kinds of back channel dialogue from the UN General Assembly gathering in New York City this week so I include a special commentary from Claude Salhani, who has been covering terrorism issues in the Middle East for quite a number of years and checks in with a column titled, "Iran's Option In Case of Attack On Its Nuclear Facilities."
By Claude Salhani
Sources in the Gulf region report that Iran is preparing for a possible attack by Israel and/or the United States on one or more of its nuclear production units by stockpiling arms and munitions with its proxy militias in Kuwait and Bahrain. Earlier this month the tiny Kingdom of Bahrain announced the arrest of 23 men whom it accused of wanting to commit acts of terrorism and plotting to overthrow the government. Bahrain may well be the smallest of Arab countries yet it contributes greatly to the overall security of the Gulf region and the Middle East. Among other things Bahrain serves as the regional headquarters to the US Navy fleet operating in the Persian Gulf.
Strategically located at about halfway up the important sea lanes in the Gulf and through which most of the world's oil is carried from extraction sites to refineries aboard super tankers, the island nation of Bahrain is linked to the Saudi Arabian mainland by a 15-mile (24 km) causeway over the azure waters of the Persian Gulf. The causeway takes one into Saudi Arabia's Eastern Province, where the largest Saudi oil fields are located. Saudi's Eastern Province is largely Shiite.
Bahrain's population of 729,000 is composed of 70 percent of Shiites and the rest are Sunni. The Sunnis hold all the top positions of power in the country, from the king on down to every major office. The Shiites, who generally feel they are treated as second-rate citizens, relate to their coreligionists in the nearby Islamic Republic. Iran periodically likes to remind the Bahrainis that their island used to belong to Iran and that the Iranians have not forgotten that.
This is a part of the world where tensions run high and conflicts can easily ignite, particularly given that all the ingredients for an explosive situation are present: oil, religion and politics. The events that unfolded in recent days in Bahrain could well serve as the foundation for a John LeCarré novel, with one exception: this was no fiction. It's real and it could represent a very real and present danger to the security of the region. The men arrested in Bahrain were said to be working for "outside forces," the term usually meant to indicate Iran. Pointing the finger directly at the Islamic Republic can prove to be a dangerous gamble. Yet that language remains clear.
The report of an attempted coup in Bahrain is something that must be taken very seriously and should send alarm sirens wailing all the way from Manama, the capital of the tiny kingdom to the corridors of power in Washington. Tehran realizes two very important facts in case of attack against its nuclear facilities: First is that if attacked by Israel and/or the United States it will be incapable of striking back directly seeing the US' domination of the skies and Israel's quasi impregnable air defense system (with US contribution).
And second, Iran also knows that it must retaliate at all costs or lose all credibility. Hezbollah, the Lebanese Shiite paramilitary movement is in a perfect position to hit Israeli towns and cities from the north and could target large centers of population as far south as Hadera and possible further. Hezbollah's arsenal includes long range field artillery and Iranian supplied medium range rockets. From the south, Hamas, the Palestinian Islamic Resistance Movement can target Israeli locations the suburbs of Tel Aviv. Hamas' artillery is more antiquated and their Qasam rockets are home made and inaccurate, though they can still cause damage and casualties.
In the Gulf, Iran supports and arms and trains Kuwait's very own Hezbollah, who in turn is believed to have been supplying training and weapons to the Bahraini Shiites, such as the 23 men who were recently arrested in Bahrain. And of course one must not forget the influence Tehran carries in Iraq, where the US still has some 50,000 troops deployed and where Iranian-backed militias would very likely go on a shooting spree.
How seriously should one take the accusations?
Iran has periodically reminded Bahrain that the island is/was part of Iran. And if attacked by Israel and/or the US Iran might decide to push the envelope, especially if they feel they have popular support on the island.
Claude Salhani is a political analyst specializing in the Middle East and terrorism
Courtesy Oil Price.Com
Watch "How To Use Fibonacci Retracements"
Share
Labels:
Crude Oil,
Iran,
Oil Price .Com,
Stochastics,
UN Assembly
Phil Flynn: Crude Oil And The Fed
The Fed did not inspire the oil market even if they laid the groundwork for more quantitative easing in the future. With a glut of supply in the front end and the expiration of the October contract, the Feds less than glowing deflationary description of the economy was not enough to keep the oil bulls optimistic. When the Fed said that it prepared to provide additional accommodation (or printed money as I like to say) to support the economic recovery and fight off what they perceive as a deflationary threat, oil struggled to find its footing even as the financial and metal world responded. Gold dutifully rallied to all time high, oil prices continued to crumble and the reason was clear.
When the Fed tells us that household spending, while rising, is being constrained by high unemployment or that housing stats are at a distressed level, it is hard to get too excited about energy demand at a time of near record high supply. The question is not whether the Fed statement was bullish for oil because it was, but the question really is how far oil would have fallen if it were not for the Fed pointing to more quantitative easing. You see the price of oil can’t fall too hard because of its impact on overall inflation or deflation expectations and it can’t rally too high because we are in the weakest time of the year. With the October contract expiring into a near record.....Read the entire article.
Hottest Investment Plays in North America: Oil and Gas Bulletin
Share
When the Fed tells us that household spending, while rising, is being constrained by high unemployment or that housing stats are at a distressed level, it is hard to get too excited about energy demand at a time of near record high supply. The question is not whether the Fed statement was bullish for oil because it was, but the question really is how far oil would have fallen if it were not for the Fed pointing to more quantitative easing. You see the price of oil can’t fall too hard because of its impact on overall inflation or deflation expectations and it can’t rally too high because we are in the weakest time of the year. With the October contract expiring into a near record.....Read the entire article.
Hottest Investment Plays in North America: Oil and Gas Bulletin
Share
BOE may Ease Further, Conforming to Our View on Low Rate Environment
Crude oil recovered modestly but remained hovering around 75 level as the market awaits the oil inventory report. Stock markets were mixed in Asian and European session so crude failed to benefit much despite its strong correlation with equities. Gold resumed the uptrend after profit taking sent price to 1274 yesterday. Currently trading at 1294, the benchmark contract for gold has gained in 5 out of the past 7 days due to macroeconomic uncertainty and the Fed’s move closer to additional easing.
Stocks gained in Asian session as driven by Australia and Hong Kong shares. Just 2 days after RBA governor Glenn Stevens saying that Australia’s economy will growth above trend in 2011, Westpac Leading Index unexpectedly rose +0.4% m/m in July, following a contraction of -0.1% in the prior month. Australia’s S&P/ASX Index added +0.21%. In Hong Kong, the Monetary Authority said the city will grow at a moderate rate through the end of the year. This lifted the Hang Send Index by +0.21%.
In Europe, equities were generally lower with benchmark indices losing 0.5-0.9%. Eurozone’s industrial new orders surprisingly fell -2.4% m/m in July from a downwardly revised +2.4% growth in June. The market had anticipated a milder drop of -1.4%. As stated in the minutes for BOE’s September meeting, economic data released in the past month has showed a ‘reduction in growth prospects’. The minutes also revealed.....Read the entire article.
The Most Complete, Current, Minute by Minute Trading News!
Share
Stocks gained in Asian session as driven by Australia and Hong Kong shares. Just 2 days after RBA governor Glenn Stevens saying that Australia’s economy will growth above trend in 2011, Westpac Leading Index unexpectedly rose +0.4% m/m in July, following a contraction of -0.1% in the prior month. Australia’s S&P/ASX Index added +0.21%. In Hong Kong, the Monetary Authority said the city will grow at a moderate rate through the end of the year. This lifted the Hang Send Index by +0.21%.
In Europe, equities were generally lower with benchmark indices losing 0.5-0.9%. Eurozone’s industrial new orders surprisingly fell -2.4% m/m in July from a downwardly revised +2.4% growth in June. The market had anticipated a milder drop of -1.4%. As stated in the minutes for BOE’s September meeting, economic data released in the past month has showed a ‘reduction in growth prospects’. The minutes also revealed.....Read the entire article.
The Most Complete, Current, Minute by Minute Trading News!
Share
Labels:
BOE,
Crude Oil,
Eurozone,
Oil N' Gold,
Stochastics
Crude Oil Technical Outlook For Wednesday Morning Sept. 22nd
Crude oil was higher overnight as it consolidates below the 20 day moving average crossing at 75.81. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.
If November extends last week's decline, the reaction low crossing at 73.08 is the next downside target. Closes above the 10 day moving average crossing at 76.33 would confirm that a short term low has been posted.
First resistance is the 20 day moving average crossing at 75.81
Second resistance is the 10 day moving average crossing at 76.33
Crude oil pivot point for Wednesday morning is 75.34
First support is last Friday's decline crossing at 74.10
Second support is the reaction low crossing at 73.08
Proof....Diversification Doesn't Work
Share
If November extends last week's decline, the reaction low crossing at 73.08 is the next downside target. Closes above the 10 day moving average crossing at 76.33 would confirm that a short term low has been posted.
First resistance is the 20 day moving average crossing at 75.81
Second resistance is the 10 day moving average crossing at 76.33
Crude oil pivot point for Wednesday morning is 75.34
First support is last Friday's decline crossing at 74.10
Second support is the reaction low crossing at 73.08
Proof....Diversification Doesn't Work
Share
Labels:
Crude Oil,
intraday,
moving average,
RSI,
Stochastics
Crude Oil Rises on Forecast of Supply Decline, Weaker Dollar
Crude oil rose before a report forecast to show U.S. inventories dropped for a third week and as the dollar fell, spurring investor demand for commodities. The Energy Department will probably say that supplies slipped 1.75 million barrels, according to the median of 18 analyst responses in a Bloomberg News survey. The Dollar Index, a gauge of the currency versus six major trading partners, slid to the lowest level since March 17. “It makes sense that prices are heading higher this morning because today’s report is expected to show a sizable draw in crude oil stocks,” said Jason Schenker, the president of Prestige Economics LLC, an Austin, Texas-based energy consultant.
Crude oil for November delivery rose 94 cents, or 1.3 percent, to $75.91 a barrel at 9:02 a.m. on the New York Mercantile Exchange. Futures are up 6 percent from a year ago. Brent crude oil for November settlement gained 37 cents, or 0.5 percent, to $78.79 a barrel on the London based ICE Futures Europe exchange. The Dollar Index slipped 0.7 percent to 79.844. The U.S. currency traded at $1.3374 per euro, down 0.8 percent from yesterday, after touching $1.3418 per euro, the lowest level since April 17.....Read the entire article.
Get 4 FREE Trading Videos from INO TV!
Share
Crude oil for November delivery rose 94 cents, or 1.3 percent, to $75.91 a barrel at 9:02 a.m. on the New York Mercantile Exchange. Futures are up 6 percent from a year ago. Brent crude oil for November settlement gained 37 cents, or 0.5 percent, to $78.79 a barrel on the London based ICE Futures Europe exchange. The Dollar Index slipped 0.7 percent to 79.844. The U.S. currency traded at $1.3374 per euro, down 0.8 percent from yesterday, after touching $1.3418 per euro, the lowest level since April 17.....Read the entire article.
Get 4 FREE Trading Videos from INO TV!
Share
Labels:
Barrel,
Bloomberg,
Crude Oil,
intraday,
Stochastics
Tuesday, September 21, 2010
Stephanie Link: How to Buy Energy Stocks
Stephanie Link, director of research for TheStreet, reveals her trade on BP now that the oil leak is dead and unveils her ideal energy portfolio.
Learn to Trade Futures in Just 90 seconds!
Share
Learn to Trade Futures in Just 90 seconds!
Share
Labels:
Crude Oil,
futures,
Stephanie Link,
Stochastics,
The Street .Com
Stock Market and Commodities Commentary For Tuesday Evening
The S&P 500 index closed lower on Tuesday as it consolidated some of the rally off August's low. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that additional gains are possible near term. If December extends the aforementioned rally, the 75% retracement level of the April-July decline crossing at 1152.70 is the next upside target. Closes below the 20 day moving average crossing at 1089.49 would confirm that a short term top has been posted. First resistance is today's high crossing at 1143.70. Second resistance is the 75% retracement level of the April-July decline crossing at 1152.70. First support is the 10 day moving average crossing at 1116.75. Second support is the 20 day moving average crossing at 1089.49.
Crude oil closed lower on Tuesday as it extends last week's decline. The mid range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If October extends the decline off last week's high, August's low crossing at 70.76 is the next downside target. Closes above last week's high crossing at 78.04 are needed to renew the rally off August's low. First resistance is the 10 day moving average crossing at 75.19. Second resistance is last Monday's high crossing at 78.04. First support last Friday's low crossing at 72.75. Second support is August's low crossing at 70.76.
Natural gas closed higher due to short covering on Tuesday and above the 20 day moving average. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near term. If October extends last week's rally, the 38% retracement level of the June-August decline crossing at 4.321 is the next upside target. Closes below Monday's low crossing at 3.806 would temper the near-term friendly outlook. First resistance is last Friday's high crossing at 4.060. Second resistance is the 38% retracement level of the June-August decline crossing at 4.321. First support is Monday's low crossing at 3.806. Second support is August's low crossing at 3.697.
Gold closed higher on Tuesday posting another new all time high as it extends the rally off July's low. Stochastics and the RSI are overbought but are bullish signaling that sideways to higher prices is possible near term. If December extends the rally off July's low, upside targets will now be hard to project following yesterday's rally to a new contract high. Closes below the reaction low crossing at 1237.90 would confirm that a double top with June's high has been posted. First resistance is today's high crossing at 1290.40. First support is the 20 day moving average crossing at 1255.70. Second support is the reaction low crossing at 1237.90.
The U.S. Dollar closed lower on Tuesday extending the decline off August's high. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term. If December extends the decline off August's high, March's low crossing at 80.18 is the next downside target. Closes above the 20 day moving average crossing at 82.53 would confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 81.96. Second resistance is the 20 day moving average crossing at 82.53. First support is today's low crossing at 80.42. Second support is March's low crossing at 80.18.
Every Once in a While, You Find Something Amazing....Check out Trend TV
Share
Crude oil closed lower on Tuesday as it extends last week's decline. The mid range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If October extends the decline off last week's high, August's low crossing at 70.76 is the next downside target. Closes above last week's high crossing at 78.04 are needed to renew the rally off August's low. First resistance is the 10 day moving average crossing at 75.19. Second resistance is last Monday's high crossing at 78.04. First support last Friday's low crossing at 72.75. Second support is August's low crossing at 70.76.
Natural gas closed higher due to short covering on Tuesday and above the 20 day moving average. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near term. If October extends last week's rally, the 38% retracement level of the June-August decline crossing at 4.321 is the next upside target. Closes below Monday's low crossing at 3.806 would temper the near-term friendly outlook. First resistance is last Friday's high crossing at 4.060. Second resistance is the 38% retracement level of the June-August decline crossing at 4.321. First support is Monday's low crossing at 3.806. Second support is August's low crossing at 3.697.
Gold closed higher on Tuesday posting another new all time high as it extends the rally off July's low. Stochastics and the RSI are overbought but are bullish signaling that sideways to higher prices is possible near term. If December extends the rally off July's low, upside targets will now be hard to project following yesterday's rally to a new contract high. Closes below the reaction low crossing at 1237.90 would confirm that a double top with June's high has been posted. First resistance is today's high crossing at 1290.40. First support is the 20 day moving average crossing at 1255.70. Second support is the reaction low crossing at 1237.90.
The U.S. Dollar closed lower on Tuesday extending the decline off August's high. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term. If December extends the decline off August's high, March's low crossing at 80.18 is the next downside target. Closes above the 20 day moving average crossing at 82.53 would confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 81.96. Second resistance is the 20 day moving average crossing at 82.53. First support is today's low crossing at 80.42. Second support is March's low crossing at 80.18.
Every Once in a While, You Find Something Amazing....Check out Trend TV
Share
Labels:
Crude Oil,
Natural Gas,
RSI,
Stochastics
Which Came First, God or the Government?
From guest blogger Keith Schaefer at Oil and Gas Investment Bulletins.....
CEO Tom MacNeill likes to throw that line out to investors as he explains the opportunity at 49 North Resources Inc. (FNR-TSX). 49 North is a specialized venture capital company that is quickly morphing into a fast growing oil producer, with a twist. It’s focused solely on Saskatchewan. The map that illustrates his point shows a stark contrast between Alberta and Saskatchewan. In Alberta, the map has an abundance of oil and gas properties being developed. Moving east across the border in Saskatchewan is like falling off a cliff; there is a dramatic and immediate drop off in the amount of activity in oil and gas.
The productive oil and gas geology doesn’t stop on a dime like that, says MacNeill. He sees huge opportunity in that map. His theory is that 40 years of socialist governments in Saskatchewan have slowed the development of the province’s energy resources, but the new business friendly government of Premier Brad Wall has created a huge wealth of opportunity for energy entrepreneurs like himself. “This is early days (in resource development) in Saskatchewan. The only thing that’s held us up in Saskatchewan is politics. We are at Year 1 in a 50 year process. We have 50 years of upside,” he gushes.
“Use Alberta as an analogue,” he adds, noting that Saskatchewan already has more conventional oil production than Alberta. “We do 500,000 bopd of conventional production. Alberta production peaked in 1983, 40 years after (the original) Leduc #1 (well). We are 40-50 years away from Peak Oil (in Saskatchewan).” 49 North has a suite of mining and oil and gas assets, but has recently been increasing its energy weighting. As is typical of these public venture capital companies, it trades at a 40% discount to its Net Asset Value.
MacNeill has invested directly in several oil and gas land packages, and has production net to 49 North of 80 bopd now, but hopes to have an exit rate of 1000 bopd from its 10 net section land package that produces from the Viking formation “This is not exploration in the Viking. We can do 16 wells per section and we have 10 sections.” 49 North had 100% success on the five wells it drilled last quarter. MacNeill joint ventures or buys out many small operators, and helps them get big fast. “We have so many opportunities, we could make swiss cheese out of this province” he says. “We’ve done a lot of geophysical work in this province. We have a lot of proprietary information from mineral exploration work we’ve done in our mining assets, and there are great synergies there (for oil and gas).”
Get Keith's Hottest Investment Plays in North America: Oil and Gas Bulletin
Share
CEO Tom MacNeill likes to throw that line out to investors as he explains the opportunity at 49 North Resources Inc. (FNR-TSX). 49 North is a specialized venture capital company that is quickly morphing into a fast growing oil producer, with a twist. It’s focused solely on Saskatchewan. The map that illustrates his point shows a stark contrast between Alberta and Saskatchewan. In Alberta, the map has an abundance of oil and gas properties being developed. Moving east across the border in Saskatchewan is like falling off a cliff; there is a dramatic and immediate drop off in the amount of activity in oil and gas.
The productive oil and gas geology doesn’t stop on a dime like that, says MacNeill. He sees huge opportunity in that map. His theory is that 40 years of socialist governments in Saskatchewan have slowed the development of the province’s energy resources, but the new business friendly government of Premier Brad Wall has created a huge wealth of opportunity for energy entrepreneurs like himself. “This is early days (in resource development) in Saskatchewan. The only thing that’s held us up in Saskatchewan is politics. We are at Year 1 in a 50 year process. We have 50 years of upside,” he gushes.
“Use Alberta as an analogue,” he adds, noting that Saskatchewan already has more conventional oil production than Alberta. “We do 500,000 bopd of conventional production. Alberta production peaked in 1983, 40 years after (the original) Leduc #1 (well). We are 40-50 years away from Peak Oil (in Saskatchewan).” 49 North has a suite of mining and oil and gas assets, but has recently been increasing its energy weighting. As is typical of these public venture capital companies, it trades at a 40% discount to its Net Asset Value.
MacNeill has invested directly in several oil and gas land packages, and has production net to 49 North of 80 bopd now, but hopes to have an exit rate of 1000 bopd from its 10 net section land package that produces from the Viking formation “This is not exploration in the Viking. We can do 16 wells per section and we have 10 sections.” 49 North had 100% success on the five wells it drilled last quarter. MacNeill joint ventures or buys out many small operators, and helps them get big fast. “We have so many opportunities, we could make swiss cheese out of this province” he says. “We’ve done a lot of geophysical work in this province. We have a lot of proprietary information from mineral exploration work we’ve done in our mining assets, and there are great synergies there (for oil and gas).”
Get Keith's Hottest Investment Plays in North America: Oil and Gas Bulletin
Share
Labels:
Canada,
Crude Oil,
Keith Schaefer,
Oil and Gas Bulletins,
Saskatchewan
EIA: Financial News for Independent Energy Companies
Independent energy companies (including oil and gas producers in addition to oilfield companies) reported a 77 percent increase in income in the second quarter of 2010 (Q210) to $3.4 billion.
Oil and gas producer revenues increased sharply along with crude and natural gas prices, and earnings rebounded from losses in Q209 to their highest second quarter level in the 2005-2010 period.
Oilfield company revenue and earnings increased modestly in Q209 but remained well below the Q2 average over 2005-2010.
Ethanol producer revenues increased and earnings crossed into the black after losses in Q209.
Read the entire EIA article.
Just click here for your FREE trend analysis of natural gas ETF UNG
Share
Oil and gas producer revenues increased sharply along with crude and natural gas prices, and earnings rebounded from losses in Q209 to their highest second quarter level in the 2005-2010 period.
Oilfield company revenue and earnings increased modestly in Q209 but remained well below the Q2 average over 2005-2010.
Ethanol producer revenues increased and earnings crossed into the black after losses in Q209.
Read the entire EIA article.
Just click here for your FREE trend analysis of natural gas ETF UNG
Share
Labels:
EIA,
Gas,
Independant Energy companies
Subscribe to:
Posts (Atom)