The energy industry is an exciting marketplace. It is currently experiencing a revolution, especially in the US. Decades-long trends of rising consumption, declining production, and increasing imports for oil and natural gas are being reversed. The heightened environmental concern about greenhouse gases created an urgency to develop alternative energy solutions. There are many market dynamics and investment opportunities within the energy sector that are unique and not well understood by the wider investment communities.
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We approach energy investing with a macro view. We research the underlying drivers for the energy industry and study the inter-relations of various markets and subsectors to seek the best returns.
We create value by
1. Exploiting our Edge: specialized knowledge and unique insight in the energy industry through careful research and interpretation of trends and data,
2. Sound Risk Management principles: balancing long/short exposure on commodities futures/equities to implement our relative value arbitrage strategy and generate superior return,
3. Discipline: execution of strategies backed by solid analysis and entry/exit planning.
Today in Energy
1 - Russia looks beyond West Siberia for future oil and natural gas growth
Short, timely articles with graphics on energy facts, issues, and trends.
2 - Regional Greenhouse Gas Initiative auction prices continue to rise
3 - Panama Canal expansion will allow transit of larger ships with greater volumes
4 - Oil tanker sizes range from general purpose to ultra-large crude carriers on AFRA scale
5 - New petroleum technology revitalizes Powder River Basin oil production
Russia was the world's largest producer of crude oil (including lease condensate) and the world's second-largest producer of dry natural gas in 2013. Most of Russia's crude oil and natural gas production occurs in West Siberia, a part of central Russia that stretches from the northern border of Kazakhstan to the Arctic Ocean. However, new technologies, growing Asian markets, and Western sanctions have the potential to shift the regional balance of Russian oil and natural gas production in the long term.
September 3 marked the 25th auction of carbon dioxide (CO2) emission allowances by the Regional Greenhouse Gas Initiative (RGGI), a cap-and-trade program covering nine states primarily in the northeastern United States. Allowance prices for this auction were $4.88, marking the third consecutive auction that prices were at or above $4 per short ton of CO2
Ships carrying crude oil and petroleum products are limited by size restrictions imposed by several of the main thoroughfares of maritime navigation: the Panama Canal, the Suez Canal, and the Strait of Malacca. These size restrictions provide another way to classify the large tankers that carry most of global crude oil and petroleum product trade.
The global crude oil and refined product tanker fleet uses a classification system to standardize contract terms, establish shipping costs, and determine the ability of ships to travel into ports or through certain straights and channels. This system, known as the Average Freight Rate Assessment system, was created by Royal Dutch Shell six decades ago, and is overseen by the London Tanker Brokers' Panel, an independent group of shipping brokers.
The Powder River Basin, well-known for its abundant coal supply, is experiencing a turnaround in oil production. Production has rebounded from a low of 38,000 barrels per day (bbl/d) in 2009 to 78,000 bbl/d during first-quarter 2014. Although U.S. oil production growth is occurring primarily in the Bakken, Eagle Ford, and Permian Basins, the Powder River Basin is among other regions of the country that have also benefitted from the application of horizontal drilling and hydraulic fracturing.
Oil and Gas
1 - Exxon winds down Russian Arctic well on sanctions
Latest news on oil prices, fracking, drilling, refining, and processing for gas.
2 - It can get scary being a Russian oil billionaire
3 - Don't excise the Ex-Im Bank: Former US trade rep
4 - Iraqi Kurdistan oil heads to Asia, in talks with China
5 - Autumn gas prices expected to hit a 4-year low
6 - Why Scottish nationalists' wager on energy is risky
7 - Why US needs to repeal oil export ban: Hess CEO
8 - Sinopec to sell $17.4B retail unit stake
9 - Strange bedfellows: Solar power meets oil drilling
10 - Russia sanctions to stall Exxon’s Arctic oil plans
11 - Cashin: This has to keep central banks up at night
12 - Gartman: Bull market in dollar just started
13 - Big oil question: When—and if—output cuts will come
14 - Oil demand growth slips to 'remarkable' 2½-year low
15 - OPEC cuts Russia’s oil supply outlook
16 - Democrats need to stop being cowards on fracking
17 - Venezuela's PDVSA: Let's make a deal on Citgo
18 - Industry group touts benefits of oil, gas boom
19 - Fracking spurs a rust belt rebound in manufacturing
20 - Choking on oversupply, oil may fall another 10%
21 - Goals for China's shale growth look unrealistic
22 - Court calls BP 'reckless'; BP says 'you're wrong!'
23 - China oil giants to boost spending as probe slows
24 - EU mulls booting Russia from World Cup
25 - Halliburton reaches $1.1 billion Gulf spill deal
26 - Pressure mounts to ease US oil export ban
27 - Europe drafts emergency energy plan amid tensions
28 - India's Reliance plans $13B in energy projects
29 - Morgan Stanley plans a start-up—in natural gas
30 - Stop worrying, and love nuclear power: Officials
Exxon Mobil said the U.S. government allowed it to wind down work on a well that has been a target of U.S. sanctions.
Russian oligarchs are becoming increasingly worried about the country's investment climate and economy in general.
The Ex-Im Bank is a lifeline for the battered U.S. nuclear sector, a former trade rep tells CNBC.
At least 3 million barrels of Iraqi Kurdish oil are on ships heading to Asia, with trade sources naming China as a possible destination.
The national average price for gasoline could soon drop another 20 cents, just in time for the holiday shopping season.
Scottish nationalists argue that being governed from London has deprived their country of Britain's oil fields' wealth. The NYT reports.
Lifting the ban on crude exports would go a long way to reducing energy prices, the Hess CEO tells CNBC.
Sinopec is selling a $17.4 billion stake in its retail unit as the country reforms its sprawling state-owned enterprises. The FT reports.
A company that uses solar is helping to keep oil drilling viable.
Exxon Mobil’s ambitions in Russia appear to have been dashed, at least until the Ukraine crisis is resolved. The NYT reports.
Falling commodity prices signal deflationary pressure, and that has to be frustrating to the central banks, Art Cashin said.
The U.S. dollar is on track for a ninth consecutive week of gains, and Dennis Gartman thinks the currency's run has just begun.
Traders are concerned that longer-term global growth will impact demand for crude oil. So will producers scale back?
Demand growth in the oil markets will be more subdued than previously expected, according to the International Energy Agency.
OPEC slashed its oil supply forecast for Russia next year and said geopolitical uncertainty was limiting its economic prospects.
Fracking is one area of the economy that's creating jobs. Dems like Obama and Cuomo need to stop delaying these projects, says Jake Novak.
Venezuela is shopping around its U.S. Citgo unit, and may net $10 billion, according to sources.
The U.S. energy renaissance's effects are being felt broadly, said the industry's main trade group.
Despite environmental concerns some U.S. towns seek the economic growth that fracking can provide. The New York Times reports.
Brent crude, the international benchmark, fell through $100 for the first time in 16 months Monday.
Chinese energy execs recently made bullish statements about shale growth there. But that may have been just to appease China, this analyst says.
The massive 2010 spill in the U.S. Gulf Coast was a result of "gross negligence and reckless" conduct by BP and other oil producers, a court ruled.
Chinese oil producers are preparing to ramp up multi-billion dollar capital spending plans squeezed amid a Beijing probe into industry graft.
The EU is considering whether to recommend suspending Russia from events including the next World Cup. FT reports.
Halliburton reached a settlement for claims against the company for its role in the BP oil spill in the Gulf of Mexico in 2010, FT reports.
Washington is facing international pressure to ease its ban on crude oil exports, with South Korea and Mexico joining the European Union.
The European Union could ban gas exports and limit industrial use as part of emergency measures to protect household energy supplies.
India's Reliance Industries plans to invest about $13 billion in energy projects, including a 400,000 barrels per day crude refinery.
Morgan Stanley is exiting one commodity business to get into another: the increasingly hot nat gas export sector.
Is there still room for nuclear power in the U.S. energy mix? Its backers say yes.