Energy Investing

How to Invest in Oil as Pipelines Release Trapped Profits

The story of how to invest in oil in the U.S. is changing thanks to a new development…

Before now, much of the increased oil production (U.S. output at a 17-year high) from the Bakken in North Dakota and the Eagle Ford and Permian Basin in Texas never reached the marketplace. It simply piled up in storage facilities at the main U.S. oil hub in Cushing, OK.

The huge inventory of oil at Cushing was the main culprit behind domestic WTI (West Texas Intermediate) crude oil selling at a discount to the global benchmark, Brent crude oil.

But, as pointed out by Money Morning Global Energy Specialist Dr. Kent Moors, that is all beginning to change.

Already the spread between WTI and Brent has narrowed dramatically from about $20 a barrel in February to less than $3 a barrel today.

The reason for the change is the amount of pipeline infrastructure being added to move oil from the Cushing choke point to refineries on the Gulf Coast.

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Energy investing

How to Invest in Natural Gas Stocks as Prices Swing Back

There are staggering numbers coming out of the energy world – numbers that explain how to invest in natural gas now…

According to the Energy Information Administration (EIA), in the United States alone is parked over roughly 862 trillion cubic feet of natural gas reserves. That's over a century's worth of domestic supply.

Better yet, there's plenty of domestic demand for that supply -and it's growing.

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Energy Investing

The Political Plot Thickens As LNG Export Approvals Trickle In

The anticipated liquefied natural gas (LNG) export boom has taken another small step forward.

After signing off on just two export licenses, a third proposal was given the green light by the Department of Energy on Thursday.

This one belongs to a joint venture of British major BG Group – available via American Depository Receipts (ADRs) in the U.S. (OTC: BRGYY) – and the Southern Union division of Energy Transfer Partners, LP (NYSE: ETP).

The joint venture is now approved to export of up to 2 billion cubic feet of LNG a day for the next 20 years from a new facility at Lake Charles, LA to any nation not on a sanctions list.

Wall Street

Jon Corzine: The Face of American Crony Capitalism

This week, House Republicans called for a criminal probe of Jon Corzine, the former New Jersey governor and former CEO of MF Global. Republicans allege that Corzine may have committed perjury when testifying in front of Congress after his firm's collapse.

Actually, Corzine personally ran MF Global into the ground.

In October 2011, MF Global declared bankruptcy after Corzine made a bad bet on $6.4 billion in European sovereign debt. After the collapse, more than $1.2 billion in client funds went missing.

Corzine has denied any wrongdoing, even though recorded conversations suggest that Corzine was directly responsible for illicitly redirecting customer funds.

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Energy Investing

How to Invest in the Global Race to Export LNG

As Money Morning Global Energy Strategist Dr. Kent Moors told us yesterday, the United States on Aug. 7 finally approved its third application to export LNG (liquefied natural gas).

The delays in the U.S. LNG export approval process have been frustrating an industry that's ready to capitalize on the price differences between North American and Asian natural gas prices. Asia LNG sells for about $16 per million BTU versus less than $4 per million BTU in the United States.

While the U.S. Department of Energy streamlines this lengthy approval process, our neighbor to the north is also using its abundance of shale gas to race into LNG exports.

You see, Canada has a lot of natural gas.

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Energy Investing

Will Natural Gas Prices Keep Rising in 2013?

One of the most popular questions among energy investors this year is will natural gas prices keep rising in 2013, or will their price climb come to an end?

We asked Money Morning Global Energy Strategist Dr. Kent Moors for the scoop.

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Energy Investing

Are Higher Oil Prices in 2013 About to Set Off an Inflationary Spiral?

There is a long-held belief that significant increases in oil prices are harbingers of building inflationary pressures.

It follows from the observation that a market able to absorb more expensive oil is also one where prices are rising elsewhere.

Top News

Gasland Round II: Natural Gas Companies Under Fire Again (This Time, From a Hose)

Documentaries frequently succeed in visually portraying the inconceivable better than any other form of story-telling. Eye-opening and shocking, many spark controversial conversations even before they air.

Such is the case with Josh Fox's Gasland Part II.

The sequel, a follow up to Fox's 2010 documentary Gasland, a film that focused on U.S. communities impacted by natural gas companies' drilling – specifically fracking – debuts Monday night on HBO.

Critical reviews run the gamut from "lies" to "pure fiction."

The first film moved scores of eager environmentalists and "fracktivists" to speak out against natural gas drilling across the United States.

Natural gas companies/fracking supporters loudly lashed out in rebuttal.

They claimed many scenes in the film, including a Colorado landowner setting his tap water on fire in what has become known as the iconic flaming faucet scene, are misleading.

Critics cite studies claiming that area residents had reported flammable tap water for decades.

Reports claim that two years before the release of Gasland, Colorado regulators investigated that very case and determined hydraulic fracking and oil and gas development has nothing to do with it.

"There are no indications of oil & gas related impacts to water well," read the Colorado Oil and Gas Conversation Commission report.

Fox failed to inform viewers of that fact saying he didn't deem it relevant. But it is relevant when it questions the validity of the film's signature scene, and the entire film's credibility.

Following Gasland's release, COGCC stated yet again that the landowner's water well "contained biogenic gas that was not related to oil and gas activity."

The Next Famous "Flaming Faucet"

As for Gasland Part II's shocker, a man in Parker County, Texas is filmed lighting the end of a garden hose on fire. The implication is that gas drilling is to blame.

The image mimics the legendary short from the first one, but isn't apt to have the same impact if this court ruling gets out…

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Energy Investing

Obama’s War on Coal Attacks All of Us

This is not a green jobs story. There are no soirees, no socialites running across the veranda drinking mojitos to hear about the latest Obama electric car boondoggle.

This is not a story of families sharing their latest trip to Martha'sVinyard. This story is a story about Morgantown, West Virginia and cities like Morgantown all across the United States.

This is a story about coal miners, hard-working people who mostly inherited their way of life from their fathers and grandfathers. Every day they go to work and every day the dangers they face could make it their last.

Their workplace has no windows. There are no Alfred Jacob Miller prints hanging on the walls. What there is, is hard work, darkness and dust and at the end of the week an income to support their families. The same as it has been for generations.

There are an estimated 174,000 blue-collar, full-time, permanent jobs related to coal in the U.S., including mining (83,000), transportation (31,000), and power plant employment (60,000).

Coal is used extensively for electricity around the country. Without coal electricity prices will rise and even now they already started to.

Data from the U.S. Bureau of Labor Statistics show a steady climb in the kilowatt hour rate since Obama took office: Price per KWH in May 2009:12.6 cents, May 2010:12.7 May 2011: 12.9, May 2012:12.9, May 2013:13.01.

Energy Investing

How to Profit From Obama's War on Coal

Since President Obama climate change speech at Georgetown University last week, Republicans and critics have accused Obama of engaging in a "War on Coal."

This isn't the first time that the President's statements on coal-fired power plants have raised questions about his energy policies. He even campaigned on higher electricity costs in 2008 when he suggested that costs would "necessarily sky rocket" to prevent the construction of new coal plants.

Obama has repeatedly argued for more spending on green investments in energy, despite multiple scandals involving campaign bundlers and billions of taxpayer dollars wasted on Department of Energy loans to companies like Fisker Automotive, Solyndra, and Beacon Power.

Now, as the President seems eager to double down on the "green" policies of 2009, which couldn't come close to creating the promised five million green jobs, the President wants to spend more of your money and execute new environmental and alternative energy laws and regulations by fiat.

But despite the stark reality that green technologies still haven't caught up with the free market solutions when it comes to bang for your buck, there's good news for investors looking to cash in on the President's War on Coal.

Just follow the money on the biggest trend in energy policy today.

It's All About Energy Efficiency

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