Wednesday, April 8, 2015

Getting Serious In Yemen -- April 8, 2015; Hydrocarbons (2014): US #1; Russia #2; Saudi Arabia #3

Alcoa to report after market close today, I believe.

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Yemen

Getting serious -- sometime ago I mentioned that Yemen was becoming the proxy war between Saudi Arabia and Iran, and perhaps even between the US and Russia.

Over at Fox News there is a story that President Obama will sent weapons to Saudi Arabia as fast as he can -- as long as it doesn't interfere with his golf game, I suppose. Meanwhile, there is a Drudge headline that Iran is sending a ship of some sort to Yemen. WWI started with less.

So, let's see what oil is doing at the opening. Down $1.33 or thereabouts.

On another note, pundits say that if Shell buys BG, it will challenge Exxon for dominance. Deep in the article, based on market cap, Exxon has nothing to fear. However, my hunch: Exxon makes a bid for something before the end of the year. Some folks have been saying that for years; I'm late to the game.

With regard to Shell and BG:
The third-biggest oil and gas deal ever by enterprise value will bring Shell assets in Brazil, East Africa, Australia, Kazakhstan and Egypt, including some of the world's most ambitious liquefied natural gas (LNG) projects.
Shell is already the world's leading LNG company and it would get BG's capacity in LNG logistics -- complex infrastructure that includes terminals, pipelines, specialised tankers, rigs, super coolers, regasification facilities and storage points.
Regardless of how this works, I have opined for years that the 21st century will be the century for fossil-fuel resurgence. Fossil fuel never went away but its new "popularity" is stunning. Remember: EV's run on coal.  Particularly in China.

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EIA Blurb

Yesterday's EIA blurb:
The United States remained the world's top producer of petroleum and natural gas hydrocarbons in 2014.
U.S. hydrocarbon production continues to exceed that of both Russia and Saudi Arabia, the second- and third-largest producers, respectively. For the United States and Russia, total petroleum and natural gas hydrocarbon production, in energy content terms, is almost evenly split between petroleum and natural gas. Saudi Arabia's production, on the other hand, heavily favors petroleum. --- EIA
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Death Watch
Greece: Cuba 2015

CNBC is reporting:
Greece sold over a billion euros worth of short-term treasury bills Wednesday in a bid to scrape together enough cash to meet is debt repayment deadlines, while a visit to Moscow might also give the country a desperately needed financial lifeline.
Greek Prime Minister Alexis Tsipras is due to meet Russian President Vladimir Putin in Moscow Wednesday and as his country apparently approaches economic ruin, analysts are concerned Tsipras could resort to drastic measures to save it from collapse. 

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