Helmerich And Payne May Cut 2,000 Jobs As It Idles Rigs -- Rigzone, January 29, 2015

Rigzone is reporting:

Driller Helmerich & Payne Inc said it may cut 2,000 jobs as it begins to idle rigs amid a slide in crude oil prices, following similar cost cuts by top oilfield services providers Schlumberger NV and Baker Hughes Inc.

Helmerich, which had about 11,901 employees as of Sept. 30, also said it would now build only 2 high-tech FlexRigs per month this year, down from the 4 rigs it had planned.

The company's shares fell as much as 10 percent to $54 on Thursday as weak forecast for 2015 margins and revenue overshadowed a better-than-expected quarterly profit.

The 2015 forecast "reflects a severe opening blow from the global downturn," FBR Capital Markets analysts wrote in a note. Helmerich has benefited so far from robust shale drilling activity in the United States. The gains extended into the first quarter Dec. 31, but are now eroding.

See disclaimer. 

Random Update Regarding Projected Number Of Oil & Gas Permits To Be Issued In 2015 -- January 29, 2015

This is way too early to be doing this, January is not even over yet, but a) I was curious; b) I was bored; and, c) January 31 falls on the weekend skewing the numbers.

The numbers may be slightly off, but probably not by much.

On January 29, in each of the designated years, this is the number of oil and gas permits that had been issued by January 29th, the raw, actual number of issued permits as of January 29th:

• 2015 (this year): 241
• 2014 (last year): 253
• 2013 (the year before last year): 218
• 2012 (the year before that): 167

Based on that data, if the number of permits were issued at the same rate, the number of permits projected to be issued each calendar year as of January 29th:

• 2015: 3,033
• 2014: 3,184
• 2013: 2,744
• 2012: 2,102

The actual number of permits issued for the full calendar year:

• 2015: --
• 2014 (last year): 3,013
• 2013 (the year before last year): 2,671
• 2012 (the year before that): 2,521

Just some idle numbers on a Thursday evening.

*****************************

Honky Tonk Angels Medley, kd lang, Loretta Lynn, Brenda Lee, Kitty Wells

Venezuela -- YouTube Video Worth A Thousand Words -- January 29, 2015

***************************

At Least It's Hard To Catch

KCRA is reporting:

A patient suspected of having Ebola is being treated at UC Davis Medical Center in Sacramento, hospital officials said.

 ******************************
Updates

February 4, 2015: 

The AP is reporting:

National guardsmen and state price adjusters fanned out across Venezuela Wednesday to impose a military-style occupation with an unusual goal: Making sure shoppers can buy enough sugar.

The South American country's socialist administration temporarily took over the Dia a Dia supermarket chain as part of a crackdown on the private businesses it blames for worsening shortages and long lines.

Embattled President Nicolas Maduro says right-wing owners are purposely making shopping a nightmare by hoarding goods and removing checkout stations. He has promised to jail any business owner found to be fomenting economic chaos.

Two executives of Venezuela's largest drugstore chain, Farmatodo, were detained over the weekend as part of an investigation by price-control authorities.

On Monday night, Congress President Diosdado Cabello said officials had arrested Dia a Dia's owner and taken over its 35 stores "for the protection of Venezuelans." By Tuesday morning, armed soldiers were overseeing lines for bags of sugar at a Dia a Dia location near the presidential palace.

Posted at time of original post:

And the breaking point will be ...

Long Grocery Line During Venezuela Crisis

Eleven (11) New Permits; 2/3 Wells Go To DRL Status -- January 29, 2015

Oil stimulus is about equal to President George Bush's 2008 stimulus.

Agenda for NDIC Hearing Dockets have been posted. Link here. 

Active rigs:

	1/29/2015	01/29/2014	01/29/2013	01/29/2012	01/29/2011
Active Rigs	145	190	187	204	163

Wells coming off confidential list today were posted earlier; see sidebar at the right.

Eleven (11) new permits:

• Operators: QEP (6), Whiting (3), SM Energy (2),
• Fields: Grail (McKenzie), Blue Buttes (McKenzie), Twin Buttes (Dunn), Burg (Divide)
• Comments:

Four (4) producing wells completed:

• 27819, 77 (no typo), Oasis, Andre Shepherd 55-1 21-5 5T, Missouri Ridge, t12/14; cum --
• 28027, 2,070, Oasis, Twobins 5501 13-29 5B, Missouri Ridge, t12/14; cum --
• 28081, 443, CLR, Franklin 2-29H1, Stoneview, t1/15; cum 4K 11/14;
• 28083, 285, CLR, Franklin 4-29H1, Stoneview, t1/15; cum --

Wells coming off confidential list Friday:

• 27752, 836, Petro-Hunt, State of North Dakota 154-99-16A-5H, Stockyard Creek, producing; another well with an interesting production profile; t11/14; cum 23K 11/14;
• 28486, drl, Hess, HA-Dahl-152-95-0706H-7, Hawkeye, no production data,
• 28775, drl, XTO, Ranger 21X-18C, Tobacco Garden, no production data,

****************************************

27752, see above, Petro-Hunt, State of North Dakota 154-99-16A-5H, Stockyard Creek:

Date	Oil Runs	MCF Sold
12-2014	6147	0
11-2014	15342	0
10-2014	677	0

Winners And Whiners -- Did I See A Cramer Headline Along That Line? -- January 29, 2015

Regardless, looks like Amazon is a winner; shares are surging after hours. Dynamic link here.

Amazon issued earnings of 45 cents a share, soaring past expectations of 17 cents, but revenue of $29.33 billion trailed.

Analysts had expected Amazon.com to report earnings of 17 cents a share on $29.67 billion in revenue, according to a consensus estimate from Thomson Reuters.

The company projected first-quarter sales of between $20.90 billion and $22.90 billion, compared to StreetAccount estimates of $23.00 billion. 

Amazon is up almost $30 (8%) after-hours. I think Jim Cramer said Amazon was ridiculously expensive back in November.

******************************

 Visa will split 4 - 1.

Google (GOOGL): forecas $7.11; miss; shares fall; $6.88 per share. Google whining: losses due to currency fluctuations. My hunch AAPL also has currency issues with which to deal.

Gasoline Demand Data Finally Released -- January 29, 2015

It's possible this data was released on time, but the webmaster forgot to update the release date. Regardless, here it is. The link is a dynamic link. 

Compare today's graph with the graph one week ago.

Today's graph:

Although demand dropped again, the demand remains about 500,000 bbls more per day than a year ago. Will we see an upturn starting next week? Stay tuned.

Graph one week ago at this link.

Keystone XL 62 - 36 Senate; Existing Home Sales Plummet In December; Odds And Ends On A Thursday -- January 29, 2015

Sales of existing homes in December: unexpectedly fell by the most in 12 months

• housing industry's recovery is "uneven"
• but the story is even worse than the headline: the 3.7% drop in December (way more than expected) followed a meager 0.6% gain the prior month -- smaller than initially estimated
• but it's even worse: analysts forecast a slight gain (0.5%) versus the huge decline
• by region: northeast, a drop of 7.5%; the west, a decline of 4.6%; in the midwest, a 2.8% decline; and in the south, a 2.6% drop
• resales make up 90 percent of the housing market

US home ownership falls to 20-year low.  Just under 64%.

Senate votes on Keystone XL, passes 62 - 36; now headed for the president's veto.

COP and OXY each cut spending by 30%. Some data points:

• COP previously said they would cut CAPEX by 20%; now up to 31%
• OXY will cut CAPEX by 33%; noted a $1.6 billion profit in 2013; an almost-$6 billion loss in 2014

Kinder Morgan's Freedom Pipeline project gaining more interest

• would move Texas crude oil from Texas to California
• would convert a natural gas pipeline to move crude and condensate
• a $2 billion project; 740-mile line; would require more than 200 miles of new pipeline
• would reformulate Texas crude at front end so it would more nearly match Alaska North Slope crude
• project would also ship ultra-light crude which could then be exported from California
• includes a topping unit in Wink, Texas where Texas oil / condensate would be reformulated

Random update of status of US exporting ultra-light condensate (same link)

• KMI did not say if they had permit approval to export ULC from California
• "at least" four other companies have such permits; a fifty is moving ahead with exports -- not waiting for approval, arguing "minimal processing" meets the letter of the law

Big Oil cuts $20 billion in five (5) hours to preserve dividends (the story is mostly about Shell)

• Shell, the first to report earnings, will defer / cancel about 40 projects worldwide
• OXY cut 33%
• COP raised cuts to 31%
• more than 30,000 layoffs have been announced across the oil industry

Shell still plans to drill the Arctic this summer
concern if they don't do it this year, ice expansion could preclude drilling in the future (I made that part up)

Natual Gas Fill Rate Right At The Middle Of The 5-Year Average -- January 29, 2015; New "Gasoline Demand" Data Still Not Posted

Natural gas fill rate, a dynamic link: -94. Current fill rate is right at the five-year average. This is quite remarkable (see graph at bottom of the linked article).

Gasoline demand (a dynamic link): screenshot data at this post. RTCC is reporting: 

Weekly US gasoline demand soared to five-year highs last month, after a collapse in oil prices, in a worrying sign that previous gains in efficiency and emissions cuts may evaporate.

The final week of December saw the highest US weekly consumption in any week of the year since July 2010.

Several years of high oil prices, and the financial crisis, have driven energy savings by consumers and vehicle manufacturers.

In addition, governments have sought to curb oil imports and drive savings and carbon emissions cuts through increasingly ambitious efficiency standards for motor vehicles, planes and ships.

An important question is how far these recent savings have been hard-wired into consumer behaviour, and whether the new standards will drive long-term cuts in carbon emissions and energy consumption.

******************************

A Note to the Granddaughters

I wrote about the Marine Mammal Care Center In San Pedro a few weeks ago. A bit more on the story. Reuters is reporting:

California sea lions – mainly pups – are turning up stranded and starved on Southern California beaches in record numbers this year, leaving experts worried that this winter may be the worst season ever documented for the marine mammals.

The precise cause is not clear, but scientists believe the sea lions are suffering from a scarcity of natural prey that forces nursing mothers to venture farther out to sea for food, leaving their young behind for longer periods of time.

Experts theorize that this winter's mild El Nino effect, which alters ocean currents and temperatures, may be compounding the shortage of fish that sea lions rely on for food, said Keith Matassa, executive director of the nonprofit Pacific Marine Mammal Center in Laguna Beach.

A Couple Of Huge Wells Being Reported By EOG -- January 29, 2015

The wells:

• 27035, 441, EOG, Parshall 60-1509H, Parshall, t81/4; cum 86K 11/14;
• 27042, 519, EOG, Parshall 46-1004H, Parshall, t8/14; cum 105K 11/14; 

***********************************

Scotland Bans Fracking

Reuters via Rigzone is reporting:

Scotland on Wednesday blocked the granting of permits for fracking and a local English council delayed a decision on two projects, casting doubt on British Prime Minister David Cameron's shale gas ambitions.

Cameron has said he will go "all out for shale" to help stem a decline in North Sea oil and gas output, but environmental concerns about the use of the fracking technology used to unleash gas trapped in rocks have turned sentiment more negative.

Scotland, estimated to have around 80 trillion cubic metres of shale gas resources - enough to cover all of Britain's gas needs for more than 30 years - imposed a moratorium on planning permits until it examines the health impact and other consequences of extraction. 

Luddites.

After reading the story about Scotland banning fracking read these two posts:

• Europe may be the only continent in the universe to depend on imported energy
• the UK will run out of natural gas in three years (that was posted in 2013)

The problem with "banning fracking until health studies are complete" backs a government into a corner. "They" all know they need the energy; "they" all know fracking is safe; "they" all know "they" are doing this to be politically correct and for "show"; and "they" all know that eventually they will allow fracking. And they can only allow fracking if the studies show that fracking is safe. And that's a tough corner to be in. There are enough people that don't even accept the benefit / risk ratio regarding immunizations (and that issue is very, very challenging in the UK).

**************************

Can't We All Just Get Along?

Erie, Colorado, is trying.

Rigzone is reporting:

The Board of Trustees of Erie, Colorado voted against imposing a moratorium on fracking in the Front Range town Tuesday evening.

In the video-streamed event, the seven-member board consisting of the Mayor, the Mayor Pro-Tem and five trustees cast four votes against the one-year moratorium.

Representatives from Encana Corp. and Anadarko Petroleum Corp. were present for the meeting, as were industry groups and a number of local residents who were for and against the moratorium.

Memorandums of understanding (MOU) agreements between the two drillers and the township of Erie will continue. The agreements “contain best management practices the operators agree to use and are included as part of their state drilling permits,” according to a January 27, 2015, story in the Denver Post.

The moratorium was said by the Board of Trustees not to be seen as a vote against drilling in the area, but rather as a way to resolve issues stemming from vibration and noise problems generated by an Encana drilling pad near the Vista Ridge development.

However, Encana and Anadarko representatives said the companies would give the town time for the two sides to resolve all issues without the need for a moratorium. Encana agreed not to submit any new permits for 90 days, and Anadarko said it was not planning to submit any permits for several months.

Last summer, Colorado Governor John Hickenlooper appointed a task force to study the issues involved with oil and gas drilling near towns along Colorado’s Front Range after residents and environmental groups on one side, and oil and gas companies and business leaders on the other side, issued countering voter initiatives that could potentially have cost Colorado significant oil and gas revenues. Both sides agreed to drop the initiatives and wait for the task force to come up with its recommendations.

****************************

Attorney General Nominee Says Illegals Have Right To Work In This County

Further: She Wants To See Them Working In This Country

Link here.

If the GOP-controlled Senate can live with this, I've lost all confidence in the Senate as a legislative body.

It is certainly everyone's right in the United States to express whatever views one has, but it is entirely inappropriate for the US Senate to confirm an attorney general who testifies that illegals have a right to work in the US, and hopes they do work in the US, even in an undocumented, illegal status.

It's one thing for any politician to say this, but it's completely different for an attorney general to say this. If an individual is here illegally, that individual needs to be returned to his / her country of origin within the boundaries of prescribed due process.  During that "due process" some illegals will be given permission to stay, and that's fine. That's working within the law, but to espouse a blanket believe that all illegals in this country have the right to work -- well, the nice thing about that: no more ICE raids on Wal-Mart, Tyson, Marriott, Chipotle, and all those California corporate farms. [Actually, it's now plausible why the GOP -- in the pocket of big corporations -- are going to love the new attorney general. By the way, the US Chamber of Commerce also supports her views. So, as usual, I assume, I'm in the minority on this issue. And that's fine.]

But if the attorney general wants to keep illegals in this country and wants to encourage them to work, she needs to have Congress change the law. This is really getting bizarre. One almost gets the feeling that the GOP (Big Money) is working in cahoots with the attorney general on this one. This is a win-win for everyone. Congress doesn't want to take the heat by changing the law, so they let the attorney general do that for them. Wink, wink.

McDonald's And "Total Brand Confusion" -- January 29, 2015

The McDonald's story is interesting. Slumping sales; slumping CEO.

Today this headline: McDonald's has 'total brand confusion': Sonnenfeld.

I didn't read the article, and probably won't.

I've been reading several books on Steve Jobs lately. I'm at Starbucks and the books are at home, so I can't reference the books directly, but that headline above reminded me of Steve Jobs ability to focus.

When Jobs came back to Apple, the company had no less than 20 different products -- and they were all 20 different versions of their computers. He had no idea how people could figure out what computer to buy.

Jobs "directed" that Apple would sell four computer models and that was it. The engineers, sales staff, everyone went nuts. Cutting product line from 20 to 4 was not going to work. (It did.) Apple even glued the computer cases so folks couldn't modify their own Apple computers (made a lot of geeks very, very unhappy, but Steve Jobs wasn't targeting geeks; his target was the best possible computer experience possible).

Steve Jobs also knew that he could take his best 20,000 hardware and software folks and have them working on four projects: iPod, iPad, smart phone, laptops. Or he could have his 20,000 folks working on one project: the cell phone. He put everything else on the back burner and made an insanely great iPhone. The iPad had to wait a year. (Or maybe it was the other way around, I can't remember, but the point is made.)

I spend a lot of time in McDonald's -- well, not a lot of time -- rather, I visit a lot of McDonald's whenever I travel cross-country. The experience is predictable; the coffee is great; the prices are incredible; and they have free wi-fi (just no outlets to charge one's mobile devices).

I hardly ever look at the McDonald's menu. I order a coffee and a small hamburger ($1 each). I used to add fries but I've learned I don't need them. When McDonald's introduced the dollar-menu, I was thrilled. A little variety and still a dollar. And that's the problem: how many folks are making their McDonald's - Burger King - Chik-fil-A choice based on price: These fast food restaurants are all inexpensive. If McDonald's didn;t offer the dollar-menu, I would be buying almost the same thing and would pay $3.50 instead of a dollar, and for the free-wi-fi, and otherwise predictable experience, and good coffee, I wouldn't mind.

In-N-Out: two hamburger choices, or thereabouts, and not much more when it comes to fries and drinks. Can't get any simpler.

The other problem with McDonald's: McDonald's is sort of like Samsung and the cheap cell phone market. Sure, Samsung can sell a lot of phones but the margin is slim; they are not making much (any?) profit on these phones. Apple made a strategic decision not to target a particular audience; Samsung appears to have made a strategic decision to target the low end of the market. McDonald's seems to have done the same thing: target the low end of the market.

Chik-fil-A and In-N-Out, on the other hand, appear that they do not target the low end of the market. I'm not sure they are even targeting a specific market.

Instead, Apple, Chik-fil-A, and In-N-Out seem to be focusing on the best product they can make and serving it in the best environment they can provide -- and not worry about whether they are targeting the high end, the middle, or the low end of the market. But McDonald's, it appears, has set its sights on attracting the low end of the market and I see it every time I visit McDonald's. Nine times out ten the McDonalds' staff is awesome, but 10% of the time, I run across McDonald employees whose values seem to be the same as the low end of the market they attract. That really never happens at In-N-Out or Chik-fil-A. Or even Wendy's although it's been a long time since I've been there (I don't know if they offer free wi-fi). I've never had a bad experience at Whataburger and I go there even knowing they don't have wi-fi. [Whataburger, by the way, offers barely more than one type of hamburger -- but they serve it 53,000 different ways to order.]

The one thing that turns me off about going into a McDonald's: my elitism. I don't like to be seen as part of their target audience -- the low end of the market. Actually, that's not quite true. I don't mind going in alone, but I really don't like to take anyone with me. And I suppose I really don't mind being seen as part of the low end of the market, but there are a lot of folks at McDonald's that are at the very low, low, low end of the market -- it's very elitist, but that's my problem. It shouldn't be McDonald's problem. But in some localities, it seems, McDonald's is barely one step above a "soup kitchen" from the Great Depression. With wi-fi.

Maybe I will go back and read that linked article about McDonald's and "total brand confusion."

Jobless Claims Drop To 15-Year-Low And Mainstream Media Has No Explanation; Stuff Happens -- January 29, 2015

The post below was posted earlier, but this is so strange, I wanted to post it again. It is being reported that jobless claims plunged by 43,000 to 265,000.

The market knows this number is bogus: if the numbers were really this good, Janet Yellen would feel comfortable "raising rates" and when the Fed "raises rates" the market will get clobbered. So, what's the market doing today? Future are up. This is unexpected with a plunging unemployment claims number.

This certainly caught folks by surprise. First, the median estimate was 300,000 -- a most reasonable number. Second: the jobless claims usually move up or down by 5,000; sometimes as much as 15,000, but that is very rare. When I saw this plunge of 43,000, something seems way off. It will be interesting to see what the revised number is next week. In addition, the plunge does not square with all the layoffs in the oil and gas sector as well as other data suggesting firms are laying off folks.

Scroll through the weekly numbers: page 1;  page 2; page 3; and page 4. A plunge of 43,000 to 265,000 just does not compute. Back in May, 2014, there was similar "strangeness," but nothing even close to this "43,000" plunge:

• May 29, 2014: seasonally adjusted -- drops an incredible 27,000 (way more than forecast) down to 300,000; lowest level since 2007. Four-week average down to 311,500. That's down almost 12,000. and they say the four-week average is less volatile. LOL. 
  
  May 22, 2014: surges 28,000 -- wipes out last week's rise of 24,000, almost double what analysts forecast. Back up to 326,000; 4-week average now at 322,250.
  
  May 15, 2014: plunges 24,000; at seven-year low; to pre-recession levels; 4-week moving average drops 2,000 to 323,250.
  
  May 8, 2014: first-time claims plunge 26,000 but four-week moving average actually increased, to a 324,750, a third straight gain. 

Also, very strange: Bloomberg didn't have much to say about it. No analysis on a story that should be a big story. At AP the headline says this is a 15-year low. But at least there's an explanation:

The latest drop may have been exaggerated by the federal holiday, which likely slowed the processing of some claims.

We won't know any more next week:

• processing of claims this week will be even farther behind with the snowstorms/blizzards
• folks in New England weren't able to get out of the house this past week to file unemployment forms
• the Super Bowl mania this week and into next week will further disrupt data

***********************************

Job Watch: Posted Earlier

Bloomberg: Link here to what seems to be a very, very fishy number.

Jobless claims plunged by 43,000 to 265,000 in the week ended Jan. 24, the lowest since April 2000, a Labor Department report showed Thursday in Washington. The median forecast of 51 economists surveyed by Bloomberg called for 300,000. The week included the Martin Luther King holiday, which makes the data more difficult to calculate, a government spokesman said as the report was released. 

The Labor Department revised the prior week’s reading to 308,000 from an initially reported 307,000.  

The four-week average of claims, a less-volatile measure than the weekly figure, dropped to 298,500 from 306,750 in the prior week.

The number of people continuing to receive jobless benefits declined by 71,000 to 2.39 million in the week ended Jan. 17. The unemployment rate among people eligible for benefits held at 1.8 percent during that period, today’s report showed.

Comment: there almost seems to be something bogus or surreal about this number. The jobless claims usually move up or down by 5,000; sometimes as much as 15,000, but that is very rare. When I saw this plunge of 43,000, something seems way off. It will be interesting to see what the revised number is next week. In addition, the plunge does not square with all the layoffs in the oil and gas sector. Something seems very, very fishy. 

Thursday: Lots Of Data Coming Out Today; Big Earnings Report Day On Wall Street; Jobs Number Seems Very, Very Fishy -- January 29, 2015

See disclaimer. This is not an investment site. If you arrived at this site looking for investment tips, you have arrived at the wrong site.

Reporting today:

• Amazon (AMZN): forecast 17 cents; blows away estimates; shares surge.
• Baxter (BAX): forecast $1.31; fourth-quarter earnings of $953 million.
  On a per-share basis, the Deerfield, Illinois-based company said it had net income of $1.74. Earnings, adjusted to account for discontinued operations, came to $1.34 per share.
• CARBO Ceramics (CRR): forecast 64 cents; profit of 2 cents per share. Earnings, adjusted for asset impairment costs and non-recurring costs, were 70 cents per share. The results beat Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 64 cents per share
• Cardinal Health (CAH): forecast $1.10; beats by $0.10, beats on revs: Reports earnings of $1.20 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $1.10; revenues rose 14.8% year/year to $25.54 bln vs the $23.48 bln consensus.
• COP: forecast 59 cents; ConocoPhillips reports EPS in-line; Co expects to deliver 2-3% production growth in 2015 from continuing operations, excluding Libya: Reports  earnings of $0.60 per share, in-line with the Capital IQ Consensus Estimate of $0.60. Co expects to deliver 2-3% production growth in 2015 from continuing operations, excluding Libya.
• Enterprise Products Partners (EPD): forecast 37 cents; Enterprise Products misses by $0.01, misses on revs; currently expect growth capital expenditures of ~ $3.5 bln and sustaining capital expenditures of ~$380 mln: Reports earnings of $0.36 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.37; revenues fell 22.2% year/year to $10.19 bln vs the $12.85 bln consensus.
• Ford (F): forecast 23 cents; Ford Motor Co., rolling out a new aluminum version of its F-150 pickup, said fourth-quarter profit fell 98 percent as it restricted production of its top-selling truck and was battered by losses in Europe and South America. Ford reported net income of $52 million, or 1 cent a share, down from $3.04 billion, or 74 cents, a year earlier. Excluding one-time costs, such as a charge in Venezuela, the profit was 26 cents a share, beating the 22-cent average estimate of 18 analysts surveyed by Bloomberg. For the full year, Ford posted pretax profit of $6.3 billion, better than the $6 billion it forecast as it cut financial goals in September.
• Google (GOOGL): forecas $7.11; miss; shares fall; $6.88 per share.
• Helmerich & Payne (HP): forecast $1.53; Earnings per share from continuing operations (excluding special items) came in at $1.70, above the Zacks Consensus Estimate of $1.57. Revenues of $1,056.6 million was substantially higher than the Zacks Consensus Estimate of $974 million.
• OXY: forecast 68 cents; core income for the fourth quarter of 2014 of $560 million ($0.72 per diluted share), compared with $1.2 billion ($1.46 per diluted share) for the fourth quarter of 2013. The fourth quarter of 2014 had a reported loss of $3.4 billion ($4.41 per diluted share), compared with income of $1.6 billion ($2.04 per diluted share) for the fourth quarter of 2013. The spin-off of California Resources Corporation was completed on November 30, 2014, and its financial and operational results have been classified as discontinued operations.
• Phillips 66 (PSX): forecast $1.34;  $2.05 per share; fourth-quarter earnings of $1.1 billion, compared with earnings of $1.2 billion in the third quarter of 2014. Adjusted earnings, excluding special items of $234 million, were $913 million in the fourth quarter, compared with adjusted earnings of $1.1 billion in the third quarter of 2014.
• Valero Energy: beats by $0.51, reports revs in-line : Reports Q4 (Dec) earnings of $1.83 per share, $0.51 better than the Capital IQ Consensus Estimate of $1.32; revenues fell 19.1% year/year to $27.86 bln vs the $27.64 bln consensus. 

*****************************************

Back to the Bakken

Active rigs in North Dakota:

	1/29/2015	01/29/2014	01/29/2013	01/29/2012	01/29/2011
Active Rigs	148	190	187	204	163

RBN Energy: a look at hydrocarbon storage in the northeast -- natural gas, gasoline, and propane.

***********************************

Job Watch

Bloomberg: Link here to what seems to be a very, very fishy number.

Jobless claims plunged by 43,000 to 265,000 in the week ended Jan. 24, the lowest since April 2000, a Labor Department report showed Thursday in Washington. The median forecast of 51 economists surveyed by Bloomberg called for 300,000. The week included the Martin Luther King holiday, which makes the data more difficult to calculate, a government spokesman said as the report was released. 

The Labor Department revised the prior week’s reading to 308,000 from an initially reported 307,000.  

The four-week average of claims, a less-volatile measure than the weekly figure, dropped to 298,500 from 306,750 in the prior week.

The number of people continuing to receive jobless benefits declined by 71,000 to 2.39 million in the week ended Jan. 17. The unemployment rate among people eligible for benefits held at 1.8 percent during that period, today’s report showed.

Comment: there almost seems to be something bogus or surreal about this number. The jobless claims usually move up or down by 5,000; sometimes as much as 15,000, but that is very rare. When I saw this plunge of 43,000, something seems way off. It will be interesting to see what the revised number is next week. In addition, the plunge does not square with all the layoffs in the oil and gas sector. Something seems very, very fishy. 

******************************

The Road To New England

The Boston Globe is reporting: a sweeping new bill on Beacon Hill aims to dramatically reshape the state's energy landscape by addressing high electricity prices and concerns about the regional grid's reliability. I assume this is in light of Cape Wind being suspended from being part of the grid.

***************************

Selfies

Islamic cleric issues fatwa against female selfies. I wonder if that includes female suicide bombers.