ConocoPhillips Suspends 2014 Alaska Drilling Plans

ConocoPhillips [COP] will place on hold its 2014 drilling plans for Alaska's Chukchi Sea due to the uncertainties of evolving federal regulatory requirements and operational permitting standards.

While the company is confident in its expertise and ability to safely conduct offshore Arctic operations, ConocoPhillips believes it needs more time to ensure that all regulatory stakeholders are aligned, said ConocoPhillips Alaska President Trond-Erik Johansen in a statement.

"We welcome the opportunity to work with the federal government and other leaseholders to further define and clarify the requirements for drilling offshore Alaska," Johansen commented. "Once those requirements are understood, we will reevaluate our Chukchi Sea drilling plans. We believe this is a reasonable and responsible approach given the huge investments required to operate offshore in the Arctic."

ConocoPhillips in 1998 was awarded 98 exploration lease tracts in the Chukchi Sea Outer Continental Shelf. The company is Alaska's largest oil producer and is operator of the Kuparuk and Alpine fields. ConocoPhillips' leases will expire in 2019. As of year end 2012, the company had invested $650 million net in its Chukchi Sea operations, including leases, seismic, biological studies and well planning, a ConocoPhillips spokesperson told Rigzone in an email.

Royal Dutch Shell plc in February suspended its 2014 offshore Alaska drilling plans, saying it needed more time to ensure the readiness of its equipment and employees for future drilling.

Last month, the U.S. Department of the Interior (DOI) concluded that Shell failed to finalize key components of its 2012 Alaska Arctic drilling program. DOI called on the industry and government to collaborate to develop an Arctic specific model for offshore Alaska oil and gas exploration.

DOI Secretary Ken Salazar said the agency would proceed with ConocoPhillips using the same regime it did with Shell. While the Obama administration is interested in pursuing Arctic resources, Salazar said they wouldn't allow shortcuts in terms of requirements, and that exploration would only be carried out with the "utmost safety."

Greenpeace International called decisions by ConocoPhillips and Norway-based Statoil ASA to shelve Arctic drilling plans on admission that the oil industry is still not capable of meeting the enormous challenges posed by operating in the world's most extreme environment.

"The time has come for governments around the world to call for a permanent halt to the reckless exploitation of the far north," said Greenpeace International Arctic campaigner Ben Wycliffe in a statement.

Posted courtesy of the staff at Rigzone


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Gold Chart of The Week

After the worst weekly decline of the year in US equities, we are slowly on the mend as we enter a week full of FED activity.

A few standouts from last week included a terrible Non Farm Payroll number on Friday and a full throttle campaign from the BOJ to continue to crush the Yen. Fridays jobs number was a big miss as 88,000 jobs were added and some real numbers regarding the drop in individuals that are actively looking for jobs was revealed. Even after these figures were announced, the stock indexes were only rattled for a short period of time before the realization that the FED will step up Quantitative Easing set back in. Since then, the stock market seems to be holding up fairly well.

The Japanese Yen had a wild week last week after the BOJ doubled down on its asset purchase program and effectively wiped out two week’s worth of recovery, and more. I think it will be interesting to see how the Yen responds to this weeks FOMC announcement that will be held on Wednesday.

The week ahead of us may be tricky as Wednesday’s Interest Rate decision looms. Traders will be less concerned about the actual rate decision, and will focus on the language used by Bernanke and other FED members throughout the week. The standout will be Bernanke’s view on the amount and the length of time the FED plans to participate in easing the market.

Keep in mind that in last month’s report, the FED maintained its focus on the labor market and we also saw a less divided FED panel on the length of Quantitative Easing. After a big miss in the Non Farm Payroll, it would be difficult to expect anything but a more aggressive campaign to keep Interest Rates row in an effort to stimulate growth.

After Wednesdays news, the markets will begin to use this information along with first quarter earnings and Fridays Retail Sales and Consumer Confidence numbers. Overall, this week should be very active for the US markets as well as commodities like Gold. The question for Gold prices is whether last week’s drop to test last Summers low is actually the low. I think after Wednesday, we should have the information necessary to make a confident decision.

The chart shows last week’s test of support, which will continue to be the focal point as Wednesdays FOMC announcement comes to pass.




Posted courtesy of Brian Booth and the staff at INO.com

Crude Oil Spikes to Near $94 After Sharp Drop

The price of oil rose to near $94 a barrel on Monday, rebounding after sharp losses last week that were due to concerns over abundant supplies and weak U.S. employment figures.

By early afternoon in Europe, benchmark oil for May delivery was up 97 cents to $93.67 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 56 cents on Friday and was down 5 percent from midweek.

The price of oil last week fell after a weak jobs report cast doubt on the strength of the U.S. economy. The Labor Department reported the economy added 88,000 jobs in March, the fewest in nine months. The slowdown may signal the economy will weaken this spring.

"The latest jobs data provide a useful reminder that this is still an uneven recovery in the U.S. economy," said Caroline Bain, commodities analyst at the Economist Intelligence Unit.

She expects oil prices to average less than $90 a barrel in the second quarter of 2013 "reflecting a comfortable market balance, lower refinery runs and only very modest growth in consumption."

The U.S. Energy Department last week reported that crude in storage was at its highest level since 1990 even though refiners had begun to ramp up gasoline production to get ready for the summer driving season. Now the economy looks like it might not grow fast enough to churn through the nation's high supplies.

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A Special Invitation from The Crude Oil Trader

Over the last 12 months, the price of gold bullion has fallen by about 3%. Gold stocks, however, have been devastated. Even great companies with great projects have lost 50% or more.

By some estimates, upwards of one third of all listed exploration and development stocks are now on the verge of failing. It was in the context of this disaster in gold stocks that our friends at Casey Research assembled an emergency summit of some of the top thinkers in the natural resource sector.

There were three compelling reasons for this meeting, which was videotaped and assembled into an online webinar.

1. To answer the overarching question – is the long bull market in gold and silver over?

2. To specifically discuss the dismal state of the resource stock market and what actions investors should take immediately to reduce further losses.

3. To assess whether the price action of gold stocks in the face of historic, global, central bank money printing has set the stage for explosive upside.

As panelist Bill Bonner commented during the filming, "The time to buy gold stocks is when nobody wants to buy them… when even you don't want to buy them."

With the gold share market in complete capitulation, that is very much the case today.

Downturn Millionaires, the title of this extremely timely webinar, was filmed on location at Doug Casey's La Estancia de Cafayate in scenic northwest Argentina, with video feeds to key players in Vancouver.

Featured guests included legendary resource investors Doug Casey and Rick Rule, as well as Louis James, the globe-trotting editor of the International Speculator. Tackling the macro picture for precious metals was best-selling author of Endgame, John Mauldin, as well as Bill Bonner, editor of the Diary of a Rogue Economist. Casey Research's David Galland acted as program moderator.

The webinar will go live April 8th at 2pm ET.

The webinar is free of charge. However, to ensure adequate bandwidth to accommodate all viewers, Casey Research is asking you sign up in advance by clicking the link below and registering with your email address.

Having listened to the observations and specific recommendations of the program panelists, I can say without reservation that if you own any gold shares or have any interest in learning about what may be one of the greatest contrarian investments of a generation, you'll want to sign up for this free webinar today.

Click here to register for Downtown Millionaires now!

By return email you'll receive confirmation and your link to attend the event, which goes live on April 8th at 2pm ET.

Feel free to pass this invitation to everyone you know who may be interested in a once in a lifetime opportunity to profit as the best of the resource stock sector comes roaring back, while the fiat currencies stumble.

Sincerely,

Ray C. Parrish

President/CEO @ The Crude Oil Trader


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The Long and Winding Gold....Bull Cycle about to Begin

The dramatic 2-3 day take down in Gold Spot pricing action smells and looks like capitulation to us at The Market Trend Forecast. We have been calling this entire 19-20 month consolidation period as a Primary wave 4 correction pattern, though complicated for sure. It has had multiple false rallies and buy and sell signals the entire time. With that said, the pattern is set up for final 5th wave decline which we are seeing now at the beginning of April.

Traditionally, Gold tends to meander or be weak in April anyways on a seasonal basis. This sets Gold up to rally in May into July with another soft patch, followed by a fall rally. However, our technical analysis is predicated on our Elliott Wave analysis, which says this entire 20 month correction is a “Double Three” correction pattern. Essentially its two ABC patterns with an “X” Wave rally in the middle to really confuse everyone.

The X wave took Gold to 1800 last fall before dumping all the Bulls off and eventually working its way down to the 1540’s levels we see today. This last leg down is a 5 wave decline and you know you’re at the bottom of wave 5 when everyone throws in the towel, the Gold stocks trade at multi year lows and relative valuation extremes. We also have insiders buying 7 to 1 over sellers according to Ink Research in the Gold stock sector. Stocks are valued at $923 per ounce equivalent even though Gold is trading north of $1,500 per ounce still.

We say bring it on and are actively accumulating selected Gold stocks with production profiles and growth metrics that are attractive.

See the Gold Elliott Wave analysis chart we sent to our paying subscribers a few days ago to forewarn of one more leg down. The next rally should be a doozy and have very few people on board. We would simply caution that a drop below $1523 spot pricing could lead to a blast down to the 1440-1460 areas, but its unlikely in our current views.

Join us for regular updates at The Market Trends Forecast.com

The 2 Energy Sectors You Should Invest in This Year

Baker Hughes Announces March 2013 Rig Counts

Baker Hughes Incorporated (NYSE:BHI) announced today that the international rig count for March 2013 was 1,268, down 7 from the 1,275 counted in February 2013, and up 76 from the 1,192 counted in March 2012. The international offshore rig count for March 2013 was 316, down 7 from the 323 counted in February 2013 and up 13 from the 303 counted in March 2012.

The average U.S. rig count for March 2013 was 1,756, down 6 from the 1,762 counted in February 2013 and down 223 from the 1,979 counted in March 2012. The average Canadian rig count for March 2013 was 464, down 178 from the 642 counted in February 2013 and down 28 from the 492 counted in March 2012.

The worldwide rig count for March 2013 was 3,488, down 191 from the 3,679 counted in February 2013 and down 175 from the 3,663 counted in March 2012.

Here is the March 2013 Rotary Rig Counts by country worldwide


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A Very Important Letter to Shareholders from Transocean RIG

If you own shares in Transocean make sure you read this entire release and make sure you vote. This is a very important vote......

Transocean (NYSE: RIG) today announced that it has commenced the mailing of proxy materials, including a WHITE proxy card and a letter from the Board of Directors, to the company's shareholders of record in advance of the company's 2013 Annual General Meeting ("AGM"), which will be held at 5 p.m. CEST, on May 17, 2013, in Zug, Switzerland. The Proxy Statement and Annual Report are also available through the company's website at http://deepwater.com/ar.

*    The Transocean Board of Directors unanimously recommends that the company's shareholders vote "FOR" a U.S. dollar denominated dividend of $2.24 per share, or approximately $800 million in the aggregate (based upon the number of currently outstanding shares), out of additional paid in capital.

*    The Transocean Board of Directors unanimously recommends that shareholders vote "FOR" the company's five experienced and highly qualified director nominees: Federico F. Curado, Thomas W. Cason, Steven L. Newman, Robert M. Sprague and J. Michael Talbert.

*    The Transocean Board of Directors unanimously recommends that shareholders vote "FOR" the granting of Board authority to issue shares out of the company's authorized share capital. This authority was originally granted at the May 2011 AGM and will expire on May 13, 2013.

*    Shareholders are encouraged to support the Board's recommendations by voting promptly using the company's WHITE proxy card.

*    The letter from the Board of Directors, which follows, discusses Transocean's highly qualified slate of director nominees and reiterates the reasons the proposed $2.24 per share dividend will maximize long term shareholder value. Furthermore, the letter addresses the importance of having the flexibility to pursue value-enhancing opportunities by granting the Board the authority to issue additional shares out of the company's authorized share capital. The Board currently has no plans to exercise this authority.

April 4, 2013....Dear Fellow Transocean Shareholders > Read the entire letter to shareholders


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EIA Weekly Natural Gas Update for April 4th

Marketed natural gas production in the Gulf of Mexico federal offshore region falls to 6% of national total in 2012. Continuing a long term trend of decline, the contribution of marketed production of natural gas from the Gulf of Mexico federal offshore region accounted for 6.0 percent of total U.S. marketed natural gas production (4.2 billion cubic feet per day (Bcf/d) in 2012, according to data published in the Energy Information Administration’s (EIA) Natural Gas Monthly. In contrast, in the period from 1997 to 2007, marketed production from these same waters provided, on average, over 20 percent (11.7 Bcf/d), of U.S. marketed production.




Among the contributing factors to this decline:

• Increasing amounts of domestic, on-shore production, primarily from shale gas and tight oil formations. In 2012, nearly 40 percent (over 26 Bcf/d according to Lippman Consulting, Inc.) of U.S. dry natural gas production came from production in shale plays, increasing over 20 fold from 2000 levels. In 2012, the two most productive shale plays were the Haynesville play in Louisiana and Texas, and the Marcellus play in Pennsylvania. In the Marcellus play, despite reduced drilling activity, production increased by almost 70 percent in 2012 over year ago levels. Increased drilling in tight oil plays like the Eagle Ford play in Texas has contributed to increased associated natural gas production. 

• Relatively low natural gas prices. Low natural gas prices in recent years have diminished the economic incentive for off shore natural gas directed drilling. However, relatively high crude oil prices continue to support oil directed drilling and the production of associated gas, particularly in deep waters. New large deepwater projects directed toward liquids development are projected to reverse the decline in natural gas production from the Gulf of Mexico in 2015, according EIA's Annual Energy Outlook 2013 Early Release.

The 2 Energy Sectors You Should Invest in This Year

Is Investing in Electric Cars the Best Way to Invest in Crude Oil?

The United States alone consumes 18.9 million barrels of oil every day, rain or shine. And China's appetite grows more ravenous by the minute, with daily consumption doubling from 5.5 million barrels in 2003 to nearly 9.8 million in 2011.

Aside from a brief downturn during the recession, global oil consumption has been moving inexorably higher.

Worldwide oil consumption passed its pre-recession 2007 peak in 2010 and continues to rise. It is projected to reach 90.2 million barrels per day this year. Meanwhile, the world's oil companies will only produce 90 million barrels per day.

In other words, demand will outstrip supply by 200,000 barrels per day, or by about 73 million barrels this year.

We can barely feed our energy appetite today. And we're getting hungrier. Per-capita consumption in China and India is still less than one-tenth that of the United States, but these growing middle classes are catching up fast. In fact, 18 million new cars hit the road in China last year -- compared with 14.5 million in the United States -- stretching oil supplies even thinner.



Meanwhile, most production grounds have been in a steady decline for decades. Future oil exploration activity will be focused in deep offshore basins, which are expensive to tap.

That's why I'm advising readers to invest in the "Oil of the 21st Century."

I call it this because no other precious resource in the world can do what it does. Businesses are willing to pay hundreds of millions a year for its unique qualities -- it is a key ingredient in a wide range of products, from pharmaceuticals to rocket fuel. But its real magic is that, pound for pound, this featherweight metal can store more electric energy than just about any other material.

I'm talking about lithium.

You see, lithium is the battery maker's best friend. Rechargeable lithium-ion batteries have twice the energy density of yesterday's outdated nickel-cadmium technology, making them indispensible in everyday products from digital cameras to portable video game consoles.

You've probably got some lithium within reach right now. If you own an iPad, iPod or iPhone, you definitely do.

But electronic gadgets aren't why I'm so excited by lithium.

The real action is in cars -- electric cars, to be specific.

President Barack Obama wants to put 1 million electric cars on the road by 2015, and 10 times that amount by 2018. The government is bankrolling the transition with some heavy incentive dollars.

GM is going electric with the Volt. Ford is planning a battery-powered car based on the Focus. And, of course, Toyota has the Prius... Honda the Insight... and Nissan the Leaf.

But car makers won't be the biggest winners from the craze for electric vehicles. Instead, I think there's another way to make even more money from the transition to battery power.

Unlike gold, silver and other metals, it is virtually impossible to invest directly in lithium. The Global X Lithium Exchange Traded Fund (NYSE: LIT), however, is the next best thing.

The fund's three largest positions, or roughly half its portfolio, is invested in companies engaged in lithium mining and refining. These companies have diverse business lines, so these aren't pure plays. But collectively, this trio accounts for the majority of the world's lithium production. The rest of the fund's assets are invested in a well rounded mix of battery makers.

Click here to get your FREE Trend Analysis for LIT

Risks to Consider: In many respects, this industry is still in its infancy. So it's difficult to say which technologies will emerge victorious and which will become historical footnotes. That means there will be some spectacular winners in this field, but also some big losers.


The 2 Energy Sectors You Should Invest in This Year