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Monday, November 13, 2017

The Market And Energy Page, T+296 -- November 13, 2017

Market close up slightly today. Futures are green tonight.

Total buys LNG assets from Engle. From Bloomberg via Rigzone, data points:
  • in today's energy market, size matters
  • billion-dollar deal
  • after Royal Dutch Shell bought BG Group last year, Wood Mackenzie said biggest energy companies with access to large volumes of diverse supplies will continue to dominate
  • superchilled gas market, currently at $90 billion in trade, will double by 2040
  • LNG market will be supported by surging demand from Pakistan to China
  • emerging markets will use LNG rather than burning dirtier coal
  • currently the biggest buyers: Japan, South Korea, and China
  • with Total's acquisition of Engle, Total will double output, quadruple trading volumes, and control as much as 10 percent of the market by 2020
Spot price for electricity in New England, today: $150/Mwh. A reader noted earlier today:
New England spot electricity price - wholesale - hit $150/Mwh this morning ... quadruple the price in the PJM region. Currently running $100 with the afternoon ramp up in demand just getting underway.
OIL (!) provided 6% of the juice.
I can only assume faux environmentalists have aggravated the problem by delaying natural gas pipelines; they must prefer burning oil. I wonder why solar / wind can't pick up the slack? For those interested, the link is here: https://www.iso-ne.com/isoexpress/web/charts.

Flashback. GE's purchase of Alstom was hailed as the deal of the century back on December 4, 2015. Fast forward: one more GE debacle. Jim Cramer hailed it as a great deal, now he's 24/7 with his mea culpa. It's my understanding that the current CEO of GE, John Flannery was responsible for the deal. The Peter Principle in effect.

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on anything you read here or think you may have read here.

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Notes To The Granddaughters

I don't see this often. At least, not often enough.

Of the five issues listed below, I have holdings in three of them. Whoo-hoo.


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