GE, Solar Power, and the Market

I am often accused of juxtaposing two facts that have no bearing on each other.

Here I go again (10:00 a.m. EST, April 7, 2011).

The market is up (barely). Oil is up (barely). Bakken-based oil companies are starting to turn green.

Ten minutes ago CNBC reported that GE has announced it will build the world's largest solar power plant in the United States, location yet to be disclosed.

One minute ago, CNBC's crawler listed the Dow laggards in early trading. Three companies were listed: one was GE.

With regard to the GE solar plant, this is the story.

• $600 million-facility to make solar panels
• The company is still deciding on the location for the new facility
• First Solar will take a hit 

From the Wall Street Journal, April 8, 2011:

"We're looking to make solar look like [GE's wind business] over the next five years," said Victor Abate, vice president of the company's renewable-energy division.

Broke (without heavy subsidies and/or govt mandates).

I couldn't resist.

Motley Fool, The President's Energy Program, and How The Bakken Fits In

MotleyFool.com has another superficial article with regard to energy, but its headline caught my eye:

Perspective on Obama's Energy Program

I was not aware that President Obama had an energy program. I know he made an energy security speech and that he wants utilities using coal to go bankrupt, and he is against off-shore drilling, but being against "stuff" is not a program. He does have a wind energy program, but I don't consider that an energy program.

Having said that, I was quite surprised to see two Bakken-based companies highlighted by MotleyFool alongside a behemoth like ExxonMobil in that article.

The two Bakken-based companies that were highlighted: Kodiak Oil and Gas and Continental Resources. There is a huge difference between KOG and CLR compared to XOM, and there's even a huge difference between KOG and CLR.

In addition, the article mentioned Denbury, a player getting bigger in the Bakken, and Linn Energy, a relatively new entrant into the North Dakota Bakken.

The President Feels Your Pain -- Not A Bakken Story

Reporting from the town meeting President Obama held at a wind turbine factory, the reporter posted the following:

Obama needled one questioner who asked about gas prices, now averaging close to $3.70 a gallon nationwide, and suggested that the gentleman consider getting rid of his gas-guzzling vehicle.

“If you’re complaining about the price of gas and you’re only getting 8 miles a gallon, you know,” Obama said laughingly. “You might want to think about a trade-in.”

The link is here.

It's been my experience that AP stories are revised after initial publication. Don't be surprised if this link is broken or if the quote is removed from the story.

It takes a bit of courage to confront the president. To ask a serious question, and to be laughed at in response, speaks volumes (at least to me). 

When oil is at $109 and when gasoline is over $4.00 in California and elsewhere, it's hard to believe we're holding town meetings in wind turbine plants. If you've been following the news, China, Japan, Germany, Norway, General Electric (GE), and others have been making tough choices and their decisions are a bit different than those of the current administration.

But this is reassuring: President Obama, in his energy security speech, said another $10 increase in the price of oil translates to only 25 cents increase in the gallon of gasoline. And his energy secretary says his worse nightmare is coal. On CNBC this a.m., it is being reported that the energy secretary now has "great concern" about the price of oil. Well, duh.

Bakken-LIke Plays in Canada

SeekingAlpha.com has another article that helps me understand the tight (unconventional, Bakken-like) plays in Canada.

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Again, my disclaimer: This is not an investment blog. I started the blog simply as a way to educate myself about the Bakken, and then decided to let it go public. The site has morphed  since the beginning but I still look at it as an educational site.

It is difficult to understand the Bakken without looking at the companies that are operating in the Bakken and that's the reason for the links to investment sites.

It was through the investment sites that I  finally understood the difference between the Alberta Basin Bakken and other plays in central Montana, for example.

However, having said that, understanding the Bakken, has made me more disciplined about investing.

Even If US Isn't Drilling Offshore, The Rest of the World Is. US Companies Benefit

Halliburton is awarded a huge contract to drill for Statoil in Norway's North Sea.