Oil & Gas and Money Printing

Yesterday’s unofficial announcement money printing has become permanent boosted asset prices.  Western world stimulus affects the precious metals complex most.  The second beneficiary is oil.  Materials are driven by Chinese and emerging market stimuli, though the heavily shorted names were the leaders yesterday.  U.S. natural gas is largely unaffected.

Oil Rises to $100 for First Time Since May After Stimulus at Bloomberg.

Yesterday China’s weak apparent demand was noted.  What if Chinese demand returns.  And the Chinese are filling SPR’s:  E&P Magazine.

Saudi Arabia’s shale gas push at Financial Post.

Brent oil technical analysis, prior to yesterday’s money printing announcement:  Greg Harmon.

Did you know “The Gulf of Mexico deepwater rig count should surpass pre-moratorium levels by the end of 2012” at Rigzone.  Two years ago North Sea oil & gas production taxes were raised unilaterally, now UK Tax Breaks Could Boost North Sea Development (E&P Mag).  While operator economics are greatly effected, this fiddling only adjusts the North Sea decline rate.

Chevron was unable to quietly build a cash hoard:  CNBC.

“Backlog of more than 1,000 non-producing implied wells will keep dry natural gas production growing in the northern Marcellus through at least 2013…incremental dry gas production growth in Northeast Pennsylvania at approximately 0.9 Bcf/d through January 2013.”  Bentek

The dry gas Haynesville outstanding and improving well productivity is examined by Richard Zeits here and part II.  Specifically, hyperbolic declines rates have improved greatly and that’s a big problem for natural gas bulls.

Later today Independent Stock Analysis will take an extensive look stimulus and the materials sector, including this natural gas effect on coal.  Would you enjoy this analysis daily?  For $100 a year, follow JJ Butler.  Become a member today!