Big Oil & Gas

Holy crap!  Nexon agrees to $15.1B takeover by Cnooc.  Marketwatch  The Chinese are coming!  The American Shale Conundrum Facing China’s Energy Champions at WSJ (google the title to read the whole article).

Oil Plunges to Four-Day Low as European Debt Turmoil Intensifies at Bloomberg.

Raymond James Energy Stat of the Week:  Iraq oil production is actually ramping up.  Raymond James

U.S. oil below $80 could slow shale oil drilling boom: Baker Hughes at ReutersWill tight oil change the world?  Financial Post.  The rig count at Haynesville Play.

Much detail and the blip in the Eagle Ford rig count:  Eagle Ford Shale.  Petroleum products shipped by rail were up 54.8% the first week of this month (AAR).

“The number of oil drilling rigs at work in North Dakota is leveling off, and a state regulator says that’s a good thing.”  Fuel Fix

Demand destruction is real as today’s teens have different habits (The Atlantic).   Yet, “Travel on all roads and streets changed by +2.3% (5.7 billion vehicle miles) for May 2012 as compared with May 2011.”  Calculated Risk

A natural gas loaded stat-fest at Zman’s Energy Brain.

We’re Headed To $8 Natural Gas at Forbes.  And he says we get there before winter!  I do not think so.  First, the glut will keep $8 natty far away this year.  But the current down cycle has set up the market for a big bull cycle.  The rigs have been moved to oil reservoirs and balance sheets have been stretched.  However, the economics are off the charts at $8 natty and would make oil returns pale.  The E&P’s would hedge and drill their brains out.  Moreover, the E&P’s really did not get crushed in this down cycle.  The coal stocks were the losers and look to be the big winners going forward…fuel switching and all.  So we’ve been looking at coal every afternoon.

For the beating the energy industry takes in the press and by the politicians, U.S. energy policy is actually quite good.  Especially next to much of the rest of the world.  Yet I found this ExxonMobil piece to shed light without being propagandish.

Independent Stock Analysis gets some love at Bakken blog Million Dollar Way.