Catch Up Oil & Gas

Oil Advances; Keystone Pipeline Set to Start at Bloomberg.

Goldman sounds like the ISA ‘stable undulating plateau oil price regime’ (Reuters):

“Over the past three years long-dated Brent crude oil prices have shown signs of stabilizing around $90 per barrel. This suggests a return to the pricing regime that characterized the crude oil market in the 1990s,” Goldman’s analysts Jeffrey Currie and David Greely said in a note.

“We expect that going forward long-dated oil prices will be anchored by the potential for substantial growth in crude oil supplies from U.S. shale, Canadian oil sands, and the deepwater. Net, we see a return to a structurally stable, but cyclically tight market,” they said.

U.S. Oil Production Up, But On Whose Lands? at IER.

Crude oil is entering a difficult time of year at Seasonal Charts.

“Shares of deepwater driller Diamond Offshore were higher as recent deals in the sector are painting a picture of a market in which deepwater oil rigs will be in high demand for years.”  AMP

Encana shares rise on Exxon takeover speculation (Calgary Herald).  Encana (ECA) is North America’s largest natural gas producer by production and resource base;  only ECA has a larger natural gas shale resource base than CHK.  Meanwhile, Canada blocks $5.2 billion Petronas bid for Progress Energy at Reuters.

ECA shares actually touch a 52 week high last week.  CHK broke out and and Friday’s pullback give a nice entry opportunity (chart).  UPL remains ISA‘s favorite.

The weekly rig count at Haynesville Play.  Rig count charts from BMO.

Daniel Yergin in E&P Magazine:

The move from fossil fuels to renewable energy has been delayed by the shale revolution since the commercial imperative in the marketplace was changed.

“The impact is not only what it does to the energy balance and not only what it does to the balance of payments, but what it does in job creation and energy development. We have done a study about the job creation potential, and what it drives home is that it’s already having an impact in terms of job creation and competitiveness in the US economy.”

An extensive piece on the Haynesville Shale in the NY Times.

U.S. Natural Gas Storage Charts from BMO.

It’s good to be back…

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