Another E & P concern in the region I hold is Oasis Petroleum. It moved up on the Kodiak acquisition news by around 2% to just under $38 a share, but this producer is significantly undervalued as well. I believe this stock will richly reward shareholders over the next few years as it continues to rapidly expand production.Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you read here. The quote above is from the writer at the linked article, not mine.
Tuesday, June 4, 2013
For Investors Only: Following The KOG-Liberty Resources, Valuation Of KOG, OAS, And TPLM
SeekingAlpha is reporting:
Three Projects To Follow In The Utica
Motley Fool is reporting:
Since wet gas is so important to the Utica's future, there are three major projects that Utica E&P companies will be following very closely. Enterprise Products Partners' ATEX pipeline, Enbridge's reversal and expansion of the Southern Lights pipeline, and Marathon Petroleum's $300 million plan to add 60,000 bpd of condensate refining capacity to two of its refineries in the Ohio valley.
The ATEX pipeline will be an NGL pipeline from the Utica/Marcellus to the Gulf Coast, where a majority of the United States' chemical refining capacity is located. The company just started open season where producers request space. Enbridge is planning to reverse the flow of the Alberta Clipper pipeline to go from the Midwest to Northern Alberta, where Utica condensate can be used as a blending component for Canadian heavy oils. For condensate to be shipped via pipeline, though, it needs to be stabilized. That's a fancy way of saying that it needs to be refined to reduce wear and tear on pipelines. It will take more wellhead investments for E&P companies, but with condensate trading at a $14 premium to WTI in Canada, it will be money well spent.And then this very, very interesting observation:
Whenever there has been a bottleneck in the supply of natural gas and NGLs, Enterprise Products Partners seems to be the one swooping in to take advantage of the situation. The ATEX pipeline is just one example of a long list of projects that will make Enterprise Products Partners one of the clear winners in the US energy boom.The essay is another attempt by Motley Fool to get you to subscribe to their newsletter which I don't. Be forewarned.
Lowest Petroleum Bill In Nearly 2.5 Years; "The Track Is Back"
Reuters is reporting, regarding imports and the trade deficit:
Unrelated, I suppose, Motley Fool provides a nice little essay on what regular readers already know: a) Kinder Morgan cancels proposed pipeline from west Texas to California (California refiners prefer the flexibility of rail); and, b) the Canadian govt likely to disapprove Enbridge's $6.5 billion pipeline from Alberta to the Canadian west coast. [Update: the Canadian federal government says the "fat lady has not yet sung."]
Activist environmentalists brought back the track. Ya gotta love it.
... the lowest petroleum bill in nearly 2-1/2 years ...The North Dakota Bakken boom began in 2007 and hit its stride in 2010 or 2011. And 2.5 years this is where we are: the US reports the lowest (import) petroleum bill in nearly 2.5 years.
Unrelated, I suppose, Motley Fool provides a nice little essay on what regular readers already know: a) Kinder Morgan cancels proposed pipeline from west Texas to California (California refiners prefer the flexibility of rail); and, b) the Canadian govt likely to disapprove Enbridge's $6.5 billion pipeline from Alberta to the Canadian west coast. [Update: the Canadian federal government says the "fat lady has not yet sung."]
Activist environmentalists brought back the track. Ya gotta love it.
Tuesday Morning News And Links
Active rigs: 189
Wells coming off the confidential list have been posted.
RBN Energy: what becomes of empty pipelines -- markets for TransCanada's Mainline crude oil conversion.
Section D (Personal Journal):
Section C (Money & Investing):
Section B (Marketplace):
Section A:
Wells coming off the confidential list have been posted.
RBN Energy: what becomes of empty pipelines -- markets for TransCanada's Mainline crude oil conversion.
The Energy East pipeline project proposes to convert part of the TransCanada Mainline natural gas system and add new pipeline in eastern Canada to connect oil receipts in Alberta with refineries in Ontario, Quebec and on the Atlantic seaboard. The proposal competes with existing plans by Enbridge to feed eastern Canadian refineries with light crude but does offer the prospect of supplying heavy crude for export from Canada’s East Coast. Today in Part 2 of a series on the project we review destination markets.
In Part 1 of this series (see What Becomes of the Empty Pipelines?) we described TransCanada’s plans to convert part of their massive Mainline natural gas pipeline to oil.
The Energy East Pipeline project would convert 1865 miles of existing natural gas pipeline and require construction of a further 870 miles of new pipeline to deliver oil from Hardisty Alberta and Saskatchewan as far East as St John, New Brunswick on the Eastern seaboard. If approved by Canadian regulators the pipeline will flow between 500 Mb/d and 850 Mb/d of heavy crude oil starting in 2017. The TransCanada open season on the project will end later this month on June 17, 2013.
If the Energy East pipeline gets built there should be no lack of crude production in Western Canada to be transported on it.Job watch. I happened to catch a snippet of CNBC this a.m. Two segments had to do with joblessness. The magic numbers for job creations remains 150,000 and 200,000. Below 150,000 will be a disaster; at 200,000 it will be pretty much ho-hum.
WSJ Links
Section D (Personal Journal):
Section C (Money & Investing):
Section B (Marketplace):
Section A:
- With energy so cheap (relatively) in the US, this is surprising (or concerning): US factories in May posted their worst month since the end of the recession.
- US oil boom scrambles Mideast calculus.
- Op-ed: ObamaCare is raising premiums in California and Oregon.
US Oil Boom Scrambles Mideast Calculus
The Wall Street Journal is reporting:
Wow, I feel good. I'm writing this on the morning of June 4, 2013 -- a beautiful day in the Boston suburbs, my last few days here before I return to Texas. The weather is gorgeous, perfect for bike riding. Only one thing would make it better: cycling with a soul mate, but that's a different story for a different time.
But the real reason I'm in a good mood is this: I've made great strides in bringing myself up to speed regarding quantum mechanics. I don't recall if I was introduced to the phrase in chemistry in my junior year of high school, but I do know that I was introduced to it in my college freshman course of chemistry. Sadly, and ironically, I don't think my physics teacher in my senior year of high school mentioned it; he taught us almost no physics.
It is impossible for me to cite the number of books I've read since college days related in some way to quantum mechanics but it's been a fair number. Most of them, I suppose, have been biographies of Einstein, Teller, Oppenheimer. But I've never really understood how the "science" developed. Louisa gilder's The Age of Entanglement changed all that. As I've mentioned before, it's a very difficult book to read. It is difficult because of the way she chose to write it, and it is difficult because, of course, due to the subject matter.
It was difficult to read but instead of getting bogged down, I simply pressed on, knowing that I would re-read the book. And that's what I'm doing now. Re-reading the book and taking notes.
Unlike calculus or genetics where it seems one can identify who, when, and where, quantum mechanics has been impossible for me. Over the years I have had three questions regarding QM: a) the general timeline; b) who coined the phrase, "quantum mechanics"; and, c) who were most instrumental in putting it together.
Here are the answers:
Syria's civil war increasingly threatens to metastasize into a regional conflict, as Hezbollah fighters join the battle on the side of Syria's government, prompting the Syrian opposition to return fire directly into Hezbollah's home base in Lebanon. Calls for the U.S. to get involved persist.
Meanwhile, another interesting news development looms. Government projections show that in September, for the first time in almost two decades, the U.S. will produce more oil than it imports. Nor will that be a fluke; the trend is expected to continue, and domestic oil production is expected to outstrip imports by an increasingly wide margin throughout 2014.
These two developments may seem unrelated, but they are not. The worsening situation in Syria raises the question of whether the U.S. will feel compelled to do something militarily to help end the rule of Syrian leader Bashar al-Assad. At the same time, though, declining U.S. reliance on Middle Eastern oil raises the question of whether Americans will find it ever harder to see the point of getting involved in that messy region.
Syria itself is an exceedingly marginal oil producer, so its direct role in the energy picture isn't an issue in calculating America's interests there.
********************
A Note To The Granddaughters
Wow, I feel good. I'm writing this on the morning of June 4, 2013 -- a beautiful day in the Boston suburbs, my last few days here before I return to Texas. The weather is gorgeous, perfect for bike riding. Only one thing would make it better: cycling with a soul mate, but that's a different story for a different time.
But the real reason I'm in a good mood is this: I've made great strides in bringing myself up to speed regarding quantum mechanics. I don't recall if I was introduced to the phrase in chemistry in my junior year of high school, but I do know that I was introduced to it in my college freshman course of chemistry. Sadly, and ironically, I don't think my physics teacher in my senior year of high school mentioned it; he taught us almost no physics.
It is impossible for me to cite the number of books I've read since college days related in some way to quantum mechanics but it's been a fair number. Most of them, I suppose, have been biographies of Einstein, Teller, Oppenheimer. But I've never really understood how the "science" developed. Louisa gilder's The Age of Entanglement changed all that. As I've mentioned before, it's a very difficult book to read. It is difficult because of the way she chose to write it, and it is difficult because, of course, due to the subject matter.
It was difficult to read but instead of getting bogged down, I simply pressed on, knowing that I would re-read the book. And that's what I'm doing now. Re-reading the book and taking notes.
Unlike calculus or genetics where it seems one can identify who, when, and where, quantum mechanics has been impossible for me. Over the years I have had three questions regarding QM: a) the general timeline; b) who coined the phrase, "quantum mechanics"; and, c) who were most instrumental in putting it together.
Here are the answers:
- a) the time line began in 1913 when Bohr (Copenhagen) solved the problem of the "stable" atom
- b) a mathematician in Gottingen, Max Born, coined the phrase in 1925
- c) two university friends studying under Sommerfeld, Heisenberg and Pauli, were most instrumental
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