Thursday, July 13, 2017

The Energy And Market Page, T+174 -- Another $300 Billion -- July 13, 2017

$300 billion: The other day Saudi Aramco said it would spend $300 billion over the next decade in the oil sector after "fretting" over global oil supplies in the out years. Now, today, we learn that India wants to spent $300 billion on oil to meet growing demand. Couldn't India simply send $300 billion in cash in small unmarked bills in an American C-130 under the cover of darkness. Oh, wait, the US already did that under the previous administration. LOL. But whatever, I digress. Time to move on.

Privatization: Bloomberg has an interesting angle to the story yesterday that a "world class" formation was found off-Mexican-shores. It's interesting that Bloomberg was able to publish this. This seems antithetical to the Obama/Hillary/Schumer/Pelosi crowd:
A consortium of Premier Oil Plc, Sierra Oil & Gas S de RL de CV and Talos Energy LLC made the discovery in the shallow waters of the southern Gulf of Mexico just two years after winning the exploration license. It’s the first new find by a private company in the country in almost 80 years, according to consultant Wood Mackenzie Ltd., possible only after the government ended the monopoly of state-run Petroleos Mexicanos.
Job watch: first time claims for unemployment claims data is released at 8:30 a.m. ET. While waiting, one can view the graphic of past data here.  Last week was not a good report, but the overall data for last week was incredibly good (part of the Trump story, I suppose). This week, econoday forecasts another huge number: 246,000 first time claims, almost as bad as the previous week. So, we will see. It's always interesting to see how the market reacts, and then how the White House spins the story if it's a bad report.

The jobs report:
  • 247,000
  • Last week 248,000 was revised up to 250,000
  • June PPI: up 0.1%
  • response on the market: market up slightly 
  • Rick: these numbers led Rick to suggest that Janet Yellen is "starting walk back" her hawkish remarks earlier this year; jobs reports are starting to scare her? Nope, she wants to keep her job.
Oil production cut? What cut? This story is getting older and older. Reuters provides an update -- something we've reported on the blog for months: 
OPEC's compliance with production cuts fell in June to its lowest levels in six months as several members pumped much more oil than allowed by their supply deal, thus delaying market rebalancing, the International Energy Agency said on Thursday.  
Hypocrisy, but I guess this is why we haven't heard much (anything?) from the previous president on this issue, LOL:
The pulse of America: one of the reasons the Drudge Report is so popular -- it has its thumb on the pulse of America. The photo above encapsulates what Americans know about the current witch hunt - regardless of what side of the issue they are. Speaking of a witch hunt, I am thrilled to have recently read Witches by Stacy Schiff. It helps put the term into perspective. Now, that was a "witch hunt." LOL.


  1. Bruck Oksol said: "This seems antithetical to the Obama/Hillary/Schumer/Pelosi crowd."

    Not really. Gross hypocrisy, and using politics as the road to riches, seems to be the first two rules of politics these days. It was, after all, Clinton (while she was Secretary of State) who intervened into Nexico's internal politics to push though Mexico's energy reform. And it was Clinton who pushed fracking thoughout the world, while at the same time bashing it at home.

    U.S. oil and gas producers look favorably upon a lot of what Trump is doing, but his clashes with the Mexican oligarchy (which Mario Vargas Llosa aptly called “the perfect dictatorship”) give them pause. From the RBN Energy article you linked a couple of days ago, one can see why. Mexico is not only a big customer for U.S. natural gas, but U.S. companies would like to get in on Mexico’s future shale development too.

    --- Do You Believe In Magic – Can Mexico Spur Gas Production In Its Burgos Shale Play? ---

    --- Hillary Clinton, coautora de la reforma energética de Peña Nieto ---

    --- Exclusive: Hillary Clinton State Department Emails, Mexico Energy Reform and the Revolving Door ---

    --- How Hillary Clinton’s State Department Sold Fracking to the World: A trove of secret documents details the US government’s global push for shale gas. ---

    1. I was focused on the "private enterprise" angle.

  2. --- Curiousor and Curiousor – Natalia Veselnitskaya Pictured With Obama Officals in DC on June 14th, 2016 ---