---
title: "Oil & Gas"
url: https://independentstockanalysis.com/oil-gas/
description: "Energy investors have one final straw to possibly grasp: Brent oil spent the previous fourteen months over $100; the 200 day moving average is $112. Brent…"
published: 2012-06-21
updated: 2012-06-21
---

# Oil & Gas

Published 2012-06-21

Posted on

by

J.J. Butler

Energy investors have one final straw to possibly grasp: Brent oil spent the previous fourteen months over $100; the 200 day moving average is $112. Brent now having a $91 handle wouldn’t feel so good. Perhaps the Saudi’s will cut production. Meanwhile, US producers are suffering with a WTI price which dipped under $80 last night. So if mid-continent realizations might be around $70, IRR’s are skinny and capex budgets are underfunded. Natty will be depressed until injection season ends with the onset of next winter. Incredibly, Ecana just increased 2012 capex for ‘liquids’: [Globe and Mail](http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/encana-adds-600-million-to-2012-spending-plan/article4359066/).

I do not expect the Iran sactions to mean squat. [Bloomberg](http://www.bloomberg.com/news/2012-06-21/china-crude-imports-from-iran-climb-to-highest-this-year.html)

Oil Boom: North Dakota is the Next Hub of U.S. Energy

:

[Popular Mechanics](http://www.popularmechanics.com/science/energy/coal-oil-gas/oil-boom-north-dakota-is-the-next-hub-of-us-energy-9660512)

. (I apologize for forgetting to whom I owe a hat tip for this one.)

Booming US production, you ask? Did you know the Eagle Ford rig count is about 60 higher than the Bakken? [Eagle Ford Shale](http://www.eaglefordshale.com/drilling-rig-count/eagle-ford-shale-regional-rig-count-flat-at-278-june-15-2012/)

On the one hand, given the opportunity, US gassers would kill LNG pricing in short order. Yet Apache’s LNG Kitmat was just pushed back a year to get the marriage right: [Financial Post](http://business.financialpost.com/2012/06/20/no-relief-for-natural-gas-producers-as-apaches-kitimat-plant-delayed/). However, every commodity for which China becomes a large importer has seen a new higher price deck. Perhaps natural gas is next at [Oil Price](http://oilprice.com/Energy/Natural-Gas/China-Turn-to-Natural-Gas-to-Fuel-their-Economic-Growth.html). Additionally, Statoil: Natural Gas to be Fuel of the Future at [Rigzone](http://www.rigzone.com/news/article.asp?a_id=118770&hmpn=1).

Calling this ‘reseach’ on Chevron is a generous term, but perhaps worth a skim: [Turnkey Analysis](http://turnkeyanalyst.com/2012/06/turnkey-research-note-chevron-corporation-nyse-cvx/).

Jaw-Dropping Panoramic Photos Of America’s Early Oil Boom: [Business Insider](http://www.businessinsider.com/these-amazing-photos-from-1919-show-how-america-was-built-on-oil-2012-6).

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