Oil & Gas Dozen

…this fall at Mining. Oil and stock market divergence: Sober Look. A month old, but Investing in the Eagle Ford Shale Oil Play from Oil and Gas Investments. I’m not sure posting this is a good idea: Oil and the CRB Approaching a Final Bottom. Gold Scents Statoil: Natural Gas to be Fuel of the Future: Rigzone. LNG seen viable fuel for heavy-duty trucks at Oil and Gas Journal. Oil and natural gas ratio: Bespoke. A fascinating look at Chesapeake’s ML… Continue reading

Shale Unbelief

……” These numbers will receive push-back, of course, as they are not months old and government issued. RBN Energy The media has been having a field day with Ohio Gov. John Kasich’s claim that a single energy company could recover $1 trillion worth of oil and gas from the state’s shale. Interestingly, the only ‘expert’ to disagree is Arthur Berman, who last I knew was in denial the natural gas market continues to be oversupplied by 10% or so. Oops…. Continue reading

Investment Books

…all market junkies. The Money Masters by John Train is simple and elegant. Old school historical: Fifty Years in Wall Street by Henry Clews The Bear Book: Survive and Profit in Ferocious Markets by John Rothchild. Looks like you’ll have to buy this one used or with a goofy cover. But it is excellent. Confessions of a Street Addict by Jim Cramer was actually fantastic. The economic and history student could start with Economics in One Lesson by Hen… Continue reading

Tons of Coal

…ious’ on short-term outlook at Mining Weekly. As for China, this is a week old and still not near being resolved: “Note the massive, five-year symmetrical triangle on the FXI chart below, that appears to be coming to a head.” Chess Coal prices were higher last week (EIA). Be aware, however, the industry generally sells coal forward directly to utilities and the spot prices shown are unprofitable. But the trend… Quarterly Coal Report from the EIA…. Continue reading

Coal Crux

…ough, we are looking to play a US thermal coal cycle as US coal plants are old (EIA). The misleading title The US has now installed enough wind turbines to power all California’s homes is still impressive knowing US residential electricity generation market share is 35%. Mining. Whether that is nameplate or actual generation I do not know… Coal earnings season takeaways: Doyle Trading. NRP will be an Independent Stock Analysis favorite conservativ… Continue reading

Energy Catch-Up

…le in Iraq’s petroleum policy.” Reuters “Fuel economy of all new vehicles sold in the U.S. is at its highest level ever…New vehicle sales showed a 4-mpg gain from October 2007 to October 2012, an improvement of about 20 percent.” Edmonds For John: Why Ford is more profitable than GM at Auto News. Study: Alberta has huge shale resources at Upstream Online. A Look At North America’s Oil And Gas Plays at Forex Pros. A steel producer gets into the nat… Continue reading

Oil Balance

…ds.” Bloomberg Northwest Territories oil play big as Bakken: Well, only if old estimates are used. Infrastructure will be a challenge. But long term with the likes of IMO, COP, and HSE.to poking around I am a believer. Calgary Herald The economic benefits of beginning to use domestic energy? America’s Energy Seen Adding 3.6 Million Jobs Along With 3% GDP at Bloomberg. CNQ’s Steve Laut: “we are very bullish on heavy oil pricing…strong likelihood th… Continue reading

Big Picture

…the bears says John Hussman. The world according to Doug Casey at Mining. Gold Miner Reversal says Castle Hill Capital. Market Strategist Jeff Saut: Best Stock Ideas For Next 3-5 Years at Market Folly. An excellent piece on why natural gas prices are not going anywhere meaningful anytime soon: RBN Energy. Did you see the refining complex rip on VLO’s blowout results? Today should be CHK’s turn… Is Saudi Arabia cutting output in answer to increased… Continue reading

Coal Introduction con’t

Old King Coal is Down in a Hole – Is There a Future for US Coal Producers? RBN Energy Coal deliveries by Titan06. Coal prices bouncing off the bottom: EIA “The U.S. is at risk of relying too much on natural gas as transportation, manufacturing and electric-power industries vie for the cheap fuel, top executives of three power utilities said.” Bloomberg Coal investors ought to know a little about Nuclear power generation: EIA Suncoke Energy chart:… Continue reading

Oil & Gas Supply

…projects.” Globe and Mail Obama administration: “re-interpreted a 50-year-old rule limiting the amount of time trucks delivering water and sand to drilling sites can stay on-site…was put into effect immediately…The new interpretation of the rule would remove a “waiting time exemption” for trucks at drilling-sites” AEI Ideas. The rig count changed little: Haynesville Play. Natural Gas Rig Count, Production and Productivity at RBN Energy. This is t… Continue reading

Mr. Partridge on the Precious Rally

…The Denver Gold Forum (Globe and Mail) was this week. Three days worth of presentations: Denver Gold Forum. Royalty plays FNV and RGLD made new all-time highs this week, as Gold mining industry shooting itself in the foot at Mining. “A big move in gold is coming…” Daily Wealth. There’s No Sensible Reason Not To Own Gold said Ray Dalio before the Fed’s Thursday bombshell at Business Insider. Do fiat currency’s collapse? In the streets Iran’s curre… Continue reading


…uld be the world’s most populous country by the time my daughter is really old. While I am relatively optimistic on the United States, structural problems remain. The Pension Rate-of-Return Fantasy is only a part of low and middle income households struggle to compete against industrializing nations. Look no further than Japan to see why money printing shall continue. Policy makers will tolerate higher inflation to help labor markets. Yet clearly… Continue reading

Natty & Coal

…up response: So you think that natural gas plants will continue to replace old outmoded coal plants? Yes, the coming wave of stateside coal plant retirements is well documented. The closure pace will be even faster with the presidential election results. But the emerging markets continue to build coal plants at a robust pace. The supercycle and all. You think that demand will raise prices, but that drillers will pass up the opportunity to produce… Continue reading


…on Barrick Gold purchased the property, increased production and made the Goldstrike gold discovery. Franco-Nevada parlayed this royalty success into an aggressive program to buy more gold royalties. In 2002, Franco-Nevada merged with Newmont Mining (NYSE:NEM) and in December 2007 Newmont spun out Franco-Nevada into an IPO. Over a 20-year period, the original Franco-Nevada provided shareholders with a stunning 36% annualized rate of return. A $1,0… Continue reading

The Order: Sector Rotation

…ttractive. The Next Wave of Debt Monetization Will Be a Disaster in which gold is the winner. ISA does not have the extreme view of a goldbug like Alasdair Macleod, but we read his excellent insight anyway: “For these nations, which use dollars, euros, pounds and yen, there is no apparent escape from an eventual fiat money collapse.” The second sector interesting to ISA is natural gas. The appeal, of course, is the high natural decline rates which… Continue reading

Wheat from the Chaff

…rd). India 2012 gold demand likely to rise 23% at Marketwatch. The 12 year old gold bull market measured by the monetary base and such by Aden Research. Or does Gold looks expensive? by Scott Grannis. Dow Jones To Gold Price Ratio Near Decade Low at GSW. The latest from Grant Williams. “I am long gold and I am short gold mining equities. There is no rationale for owning gold mining equities. It is as close as you get to insanity.” say Hugh Henry…. Continue reading

Crude Consumption and Production

…tural resources is a good one.” Financial Post I maintain US natural gas drillers would destroy LNG pricing in short order if given the chance (IAR). A pragmatic look at The Reality of Exporting LNG at Haynesville Play. I’m still catching up, so while this is a almost a week old, energy was actually the second best performing sector over the last month: All Star Charts. Owning the right stocks is vital. Robust oil prices and still ATP Oil & Gas Fi… Continue reading

Roadmap to recession, or You Own Too Much Common Stock

…will be talking about this later in the year. How to position? Cash. And Gold – Preparing for the next move by Alasdair Macleod. Buy Gold, Sell Stocks Is the ‘Trade of Century’ There is a lot here to ponder. As I have only begun to get back in the saddle, a question to consider: How would you like to be positioned when outstanding opportunity arrives? I am bursting with things to say in the months ahead You know where I stand: You own way too muc… Continue reading