Category

Energy

Energy Investing

These Fracking Trucks Reveal Energy's Most Underreported Boom

Now that the rig market for oil and gas projects is heating up again, it's time to invest where energy's big-money cycle actually begins.

After all, without a rig, a well is nothing more than a dot on a map.

That's why the oil field service (OFS) business always improves before the fortunes of field production companies.

But there's an even earlier link in this profit chain…

Energy Investing

For the Best Natural Gas Stocks, Look Deep in the Heart of Texas

To pick the best natural gas stocks to play the natgas price rise, you need to look not just at company fundamentals, but one crucial factor: Where these companies' assets lie…

That's because companies with assets in Texas are booming, and will deliver some of the best gains ever seen by energy investors.

Texas is the historical center of the U.S. energy industry. Today it's a major producer of natural gas.

Joel D. Moxley, president of the Gas Processors Association, told the Houston Business Journal, "Booming is the only way to describe the natural gas industry in Texas."

Texas holds about 23% of the U.S. natural gas reserves and accounts for approximately 30% of current U.S. output.

Its present output is roughly 19.7 billion cubic feet of natural gas per day. That means if ranked globally, Texas would rank third for natural gas production – behind Russia and the other 49 U.S. states.

One main area of focus for natural gas in the Lone Star state is the Eagle Ford Shale Formation. Production there nearly tripled between 2009 and 2012.

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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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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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