America might be on its way to become a net oil exporter, but there's no reason why this should get in the way of building pipelines that connect different types
of oil plays to the refiners best equipped to turn their crude into the petroleum products that feed North America's economy and the world's.
However, I've seen far too many portfolios that include 4 or 5 different investments, each of which is another version
of the oil play.
Not exact matches
Instead
of hedging away from gas, as TransCanada and many other companies appear to be doing, it's a bet that gas will
play a much bigger role in our energy future, probably at the expense
of oil.
For its part, the
oil and gas industry, by pouring investment into the oilsands with little concern for how it's going to get the
oil out to markets, «is
playing a high - stakes game
of chicken,» Cann adds.
In the first decade
of the century, the large integrated
oil companies traded at an average discount
of between 11 % and 12 % compared to their pure -
play competitors, according to a study conducted at the time by Citi Investment Research and Analysis.
Investors who would prefer to
play E&P companies more broadly could consider the iShares U.S.
Oil & Gas Exploration & Production ETF, which focuses on large - cap companies and has an expense ratio
of 0.43 %.
Based on a sum -
of - the - parts analysis, integrated
oil companies traded at a discount to their pure -
play competitors, whether they were pure -
play upstream, like an Anadarko or a Chesapeake, or downstream, like Valero or Tesoro.
At the beginning
of 2011, the small integrated energy company voluntarily split into a pure -
play upstream company, called Marathon
Oil, and a pure -
play refiner, called Marathon Petroleum Corporation.
So, while low
oil prices will make this a trying quarter for the entire energy industry, companies with a more balanced portfolio
of assets should fare better than the pure -
plays.
The U.S. can produce as much shale
oil as it wants, but its Gulf Coast refineries are geared toward heavier kinds
of crude that can easily process
oil sand bitumen but aren't geared toward the lighter crude coming out
of, say North Dakota's Bakken
play.
Geopolitical concerns: Considerable geopolitics always
plays a role in
oil pricing, especially when they involve conflicts — like those in the Gulf Region, where roughly 60 percent
of global
oil is produced.
«This year, however, (OPEC's) production curbs will increasingly have to make do with
playing second fiddle to a Texas - sized wave
of U.S. shale growth,» Stephen Brennock,
oil analyst at PVM Oil Associates, said in a research note Wednesd
oil analyst at PVM
Oil Associates, said in a research note Wednesd
Oil Associates, said in a research note Wednesday.
He had been anticipating a drop in
oil prices, for example, but rather than
play oil producers (which Canadian investors already hold a lot
of), he decided to focus on the energy transportation sector.
«Last year, we successfully completed the transformation
of our extensive Spraberry / Wolfcamp acreage position in the Permian Basin
of West Texas from a vertical
oil play into a horizontal
oil play with a drilling inventory that will last decades,» chairman and CEO Scott D. Sheffield said in the company's 2014 annual report.
To be sure, U.S. shale
oil producers have
played the part
of the spoiler this year.
There were PowerPoint presentations about the positive and negative qualities
of oil and latex paints and role -
playing exercises about pitching house - painting services and answering homeowner objections.
The marriage
of ASX listed Azonto Petroleum to the unlisted Calima Energy is essentially a story
of money meets management experience with the marriage consummated at one
of the best addresses in town, the Montney
oil and gas
play in Canada.
In what looks to be an astute corporate
play that will effectively double the company's size, Calima Energy has lined up friendly takeovers
of both
of its joint venture partners in the Montney
oil and gas Basin in Canada.
At least half
of the June rebound is explained by the
oil rebound, though the Pan Am Games in Toronto
played a positive role as well.
Founded as the «Toronto Club
of the West» by the same ranchers who began the Calgary Stampede, the Ranchmen's Club
plays host to a who's who
of Alberta's
oil and gas elite.
His rivals
play off it on the campaign trail, with the NDP's Thomas Mulcair bemoaning billions in subsidies to the fossil fuel sector and Liberal Leader Justin Trudeau saying Harper «bet everything on the price
of oil.»
It's no secret that you've only got three shale
oil plays in the U.S.
of any consequence,» Papa said.
The group behind the «ethical
oil»
play can't really expect the rest
of us to start using the term to differentiate Canadian from other
oil.
By keeping prices below the marginal cost
of unconventional production (about $ 75 per barrel), OPEC hopes that expensive
oil production will decline along with the fortunes
of the companies engaged in these
plays.
The head
of the Organization
of Petroleum Exporting Countries (OPEC) has denied the group's members are
playing a game
of chicken with
oil U.S. producers.
But recent comments from Iraq's
oil minister suggest that there are other ideas at
play — perhaps an extension through the end
of 2018, or maybe even deeper production cuts.
A supply curve is an ordered list
of all the
oil production opportunities globally, sorted by the cost
of extraction or, probably better for this example, the potential free - on - board price at a global trading hub — take every
oil play in the world and ask what it would cost delivered to the US Gulf Coast as a starting point.
A sale
of Apache Canada would mark the Houston - based company's exit from the country, the latest international
oil firm to sell Canadian operations in favor
of concentrating on U.S. shale
plays.
Last fall, Goldman Sachs
played the first harbinger
of gloomy times to come, alerting investors that
oil prices could fall as low as $ 20 a barrel.
Related: The World Just Lost One
Of Its Biggest
Oil Plays To Low Prices
The joint statement by the Institutional Investors Group on Climate Change, the Investor Network on Climate Risk, and the Investors Group on Climate Change also encourages intensive gas users and governments in
oil and gas importing regions to consider
playing a role in encouraging control
of methane emissions.
Up until recently
oil stocks have been about
playing / gaming some type
of normalization from the 2014 - 15 crash.
The Company is not focused on acquisitions
of properties that include Enhanced
Oil Recovery («EOR») projects or properties that are located in the Gulf
of Mexico, Gulf Coast, or International
plays.
Day trading any security is a risky venture, but any related to the global
oil market are particularly volatile due to the myriad
of factors at
play.
«I think no deal is probably better for the longer - term because it continues this process
of rebalancing and there is no rebalancing without pressure and pressure comes through lower
oil prices, through tighter credit and we're seeing all
of that
playing out nicely,» he said.
Oil plays in North Dakota, Texas, and elsewhere around the country may have reversed declining US production, but much of that oil is also ending up on rail cars bound for coastal refineri
Oil plays in North Dakota, Texas, and elsewhere around the country may have reversed declining US production, but much
of that
oil is also ending up on rail cars bound for coastal refineri
oil is also ending up on rail cars bound for coastal refineries.
Also could consider Sibanye as a defensive
play in light
of middle East and Ukraine crises, always think
oil and gold could be good
The Wattenberg Field is one
of the top rate -
of - return horizontal
oil plays in the U.S. Onshore.
One
of the drivers
of that growth is its recently discovered Alpine High
play in a little - known corner
of the Basin, which Apache believes holds more than 3 billion barrels
of oil.
Looking back at the cost gap figure above, the potential revenue generated by EOR is only about $ 50 - 60 / ton, and that is in the best
plays under the assumption
of high
oil prices.
The Gulf Coast Express Pipeline, which is targeted to be in service in October 2019 pending regulatory approvals, would add a much - needed conduit for the flow to demand markets
of the increasing amounts
of associated gas that are being lifted from the Permian amid an avalanche
of investment in the
oil - rich
play that spans West Texas and southeastern New Mexico.
Since 2008, he's called practically every major shale
play before the mainstream press got wind
of them — including the now - famous Bakken
oil formation and the companies that have raked in billions in profits for their shareholders.
Free Option Upside from Its 13,000 Net Acres in the Duvernay Shale
Oil Play: Point Loma has established ~ 13,000 acres (20 net sections) of land within the Duvernay oil shale wind
Oil Play: Point Loma has established ~ 13,000 acres (20 net sections)
of land within the Duvernay
oil shale wind
oil shale window.
Encana Corporation, incorporated on January 1, 2006, is an energy producer that is focused on developing its multi-basin portfolio
of natural gas,
oil and natural gas liquids (NGLs) producing
plays.
In the case
of offshore driller Noble Corp. and
oil tanker operator Teekay Tankers, supply and demand
played a big role, driving down prices for their services while increasing competition for the available work.
One other news item
of note from Marathon
Oil this quarter was that the company announced it leased 250,000 acres
of land in new resource
plays over the past year, including a large position in the emerging Louisiana Austin Chalk
play.
By now, it should be obvious that the Saudis and their Gulf allies are
playing the long game when it comes to the current
oil situation, and that means keeping the taps flowing in the midst
of a global glut no matter how low prices go.
Per Google Finance, EnCana is «an energy producer that is focused on developing its multi-basin portfolio
of natural gas,
oil and natural gas liquids (NGLs) producing
plays.
Though most
of the explosion in the Bakken region is already
played out, and though a large portion
of the
oil workers in the region have already found permanent housing situations, I expect the growth in the Price / Book multiple coupled with steady earnings (if not growing earnings) to secure the safety
of this investment for the near future.
The Saudis retaliated, not by
playing its historic role
of swing producer and putting the brakes on
oil output, instead deciding to pump as fast as possible.