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We'll Tell You When It's Time to Tap Tesla

A week ago today, in a strategy story aimed at helping you survive and thrive in today’s whipsaw markets, Chief Investment Strategist Keith Fitz-Gerald told us to put Tesla Motors Inc. (Nasdaq: TSLA) on our “watch lists” for a likely future purchase.

“BP, Tesla is a definite ‘shopping list’ stock,” Keith told me back then. “We’ve been nibbling at it here, and have played it successfully several times. But it’s not yet at the point where I’m ready to jump all the way in. I think my rationale behind Tesla remains upbeat. I mean, you’ve got a real winning combination here – a disruptive sales model, a CEO who’s the most innovative guy on the planet, all the capital in the world that can be brought to bear. I don’t give a rat’s [tail] that New Jersey won’t let the company sell its cars there. There are much bigger opportunities. Wait ’til you see what the company does with China.”

Sometimes I think Keith has a “crystal ball” in his hip pocket…

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Oil Archives - Page 10 of 35 - Money Morning - Only the News You Can Profit From- Money Morning - Only the News You Can Profit From.

  • Don't Ignore This Shift in the Global Oil Market

  • This Key Energy Metric Could Make You A Lot of Money

    Last week I discussed what EROEI is-and how to use it.

    This week I'd like to talk about how this key metric affects the balance of your energy investment portfolio.

    Now, this is certainly not the only element in determining preferable stock moves, but it's critical that you know the EROEI because it could make you a lot of money.

    Recognizing the real elements that determine the genuine cost of energy production, EROEI is becoming an important factor in estimating profit margins.

    And those margins certainly influence the performance of a stock as we've seen all across the energy value chain in recent months.

    EROEI refers to the amount of energy used to produce energy.

    If this ratio produces a figure of 1.0, EROEI is telling us that it takes one barrel of oil equivalent to produce one barrel as a result.

    Anything under 1.0 means that more energy is consumed in the production process than is gained as an end product.

    EROEI has the advantage of being a useful yardstick throughout the energy curve – from upstream production sites (wellheads, generating facilities) through midstream (gathering, transit, storage and initial processing) to downstream (refineries, terminals, wholesale and retail distribution, end use).

    Some applications of EROEI are already in wide usage, although we don't tend to think about them in these terms. Energy-efficiency ratings on appliances, heating and cooling systems, windows, or building supplies are an application at the end of the energy curve.

    But how can we use this to fine-tune an investment portfolio?

    To continue reading, please click here…

  • Winning the Race for Resources

    The world watched in awe as American swimmer Michael Phelps became the most decorated Olympian of all time.

    I've read he's been training in the pool for an average of 6 hours a day, 6 days per week, which equates to about 30,000 hours since age 13 and about 10,000 calories burned during a training day. It's inspiring to see the incredible results of his tremendous sacrifice and commitment.

    Investing in global markets requires the same sort of stamina, especially at times like this week, when the month's reading on the manufacturing industry was not encouraging. The J.P. Morgan Global Manufacturing PMI of 48.4 for July was the lowest since June 2009.

    However, I believe there are encouraging pockets of strength to energize and inspire investors.

    For example, we're coming up on the anniversary of the first stimulus move that kicked off the global easing cycle.

    On August 31, 2011, Brazil unexpectedly cut rates by 50 basis points, and since then, ISI says 228 stimulative monetary and fiscal policy moves have been initiated across several countries, including the Philippines, China, France, and Colombia.

    In June and July alone, there were nearly 70 moves-the most since the world began this massive easing.

    Generally, by the time central banks make a fiscal or monetary easing move, economic deterioration has already occurred.

    Even with these moves, it still takes several months for the stimulative measures to take effect and work their way through.

    China Makes Its Move

    But while the world wades in the shallow end of the pool waiting for the economy to warm up, Asia has taken a deep dive into the energy space as they've recently announced acquisitions of Canadian resources companies.

  • What EROEI is – and How to Use It

    In Friday's Oil & Energy Investor, I began a discussion about the importance of a metric known as Energy Returned on Energy Invested (EROEI).

    As our research disclosed in the "Your Future: The Ultimate Pyramid Scheme" documentary, the factor is becoming a substantial element in the availability and cost of energy in general.

    But oil is the most critical energy source in this discussion.

    Our research has found that the situation will not be improving. We will be reaching a point when our need for exponential growth in energy, the environment, and the economy will become unsustainable. From there, we will experience a tipping point, and then a major collapse.

    This will require that each of us change the way we structure our investments, secure our assets, and provide for our families.

    However, in the interim, there will also be some amazing opportunities to make unparalleled profits in the energy sector.

    And, in all of this, EROEI will be figuring in important ways.
    To continue reading, please click here…

  • Oil Prices: U.S. Drought Hurting More than Crops

    The unusually warm and dry weather across more than half of the United States has resulted in one of the worst droughts in U.S. history. Much has been made about how the crisis will affect crops and cattle, but it could also alter oil production and prices.

    With nearly 64% of the contiguous United States in a drought, the highest percentage since the U.S. Drought Monitor began recording such data in 2000, the economic repercussions are searing.

    To date, 2012 has already surpassed 2011's $12 billion in drought losses, and this year is on pace to rival the droughts of 1980 and 1988, which endured losses worth a current value of $56 billion and $78 billion, respectively.

    According to 70 years' worth of data studied by the National Center for Atmospheric Research, weather (from heat waves to cold spells to droughts) can cause up to a 1.7% rise or fall each year in the U.S. economy's gross domestic product.

    Farmers and agricultural companies have been voicing concerns, now oil and gas companies are speaking up.

    With farmers trying to hold on to every ounce of water they find, oil companies don't know how they will get the water needed to drill into their oil fields.

    "Water is the key to unlocking oil and gas. We take it for granted," in the U.S., said Chris Faulkner, president and chief executive officer of Breitling Oil & Gas, which has numerous operations in several of the new shale regions.

  • Oil Prices: Three Factors to Watch this Week

    Oil prices took a break today (Monday) from their four-day streak of gains. Crude for September delivery ended 35 cents lower, or 0.4%, to $89.78 a barrel on the New York Mercantile Exchange.

    But there are a few catalysts that could propel energy higher this week.

    The recent resurgence in oil prices – up about 14% in the past month – has trickled to prices at the pump, too.

    For the third consecutive week last week, the Energy Information Administration (EIA) reported the U.S. average retail price of regular gasoline jumped seven cents to $3.49 a gallon. The national average diesel fuel price increased nine cents to $3.78 per gallon.

    Money Morning Global Energy Strategist Dr. Kent Moors warned a few weeks back of this expected oil price climb. He said "the gasoline and oil markets have certainly been oversold and remain so to this day," adding that "the rebound is likely to be greater there than in the energy sector as a whole."

    It appears that rebound has started. Here are three factors that could fuel the oil price climb this week.

  • Will Oil Prices be the Next Manipulation Scandal?

    Now that the Libor manipulation scandal has been revealed, it looks like oil prices could be the focus of the next search for misreporting.

    According to the International Organization of Securities Commissions (IOSCO), the current system of oil price reporting is "susceptible to manipulation or distortion."

    Comparisons to Libor manipulation have been made because oil prices, such as Brent, serve as a benchmark for trillions of dollars of securities and contracts.

    There is the potential for market participants to manipulate oil price assessments published by price-reporting agencies (PRA) through the submission of false information and selective reporting of deals.

    Traders at various banks voluntarily report the prices they pay for oil contracts to Platts and other PRAs. Platts, which provides the most influential assessment, uses a number of trades to decide what the benchmark price, quoted to the outside world, should be.

    That is where the trouble begins.


    To continue reading, please click here…

  • Why Gas Prices are Heading Higher

    With "Big Ben" testifying over the next two days on Capitol Hill, the indices will be bouncing around.

    I always find it curious that the same Street urchins who criticize government for interfering in the "free market" are nonetheless the same ones pouting in the corner when the Fed doesn't propose a new bailout to improve their portfolio values.

    When my children would pull a stunt like that, they would be sent to bed early… not given a seven-figure salary and benefits.

    In any case, that's not the only pouting going on…

    A few weeks ago, pundits were claiming U.S. gas prices could be moving down to as low as $3 a gallon nationwide.

    Well, these same guys have been quiet lately.

    That's because the price has been moving, all right, but in the opposite direction.

    The RBOB near-month futures price was up again yesterday (Monday) at market's open. This is the contract traded on the NYMEX for blended gasoline. The price has increased 5.6% in the past week and 11.6% for the month. As of Monday's open, the price had recovered 13% from the recent low, just three weeks ago.

    Gasoline is now tracking ahead of the rise in crude oil futures prices.

    The reasons are rather straightforward.

    To continue reading, please click here…

  • Four Things Suppressing Crude Oil Prices Today

    The collapse of talks between Iran and the "Big 6" (the five permanent members of the UN Security Council plus Germany) should have accelerated international crude oil prices.

    And yes, they are higher.

    But the real spike hasn't hit. Not yet.

    The rising crisis atmosphere in the region and the genuine possibility that a fourth round of talks between the two sides will not even take place should have renewed the upward movement.

    That hasn't taken place yet, either.

    Oil prices are caught between the normal dynamics of geopolitical concerns – which push prices north – and continuing concerns over a global economic slowdown – which results in lowering expectations.

    Now, this limbo is a delicate balance; it could change in a matter of hours.

    We are likely to see a short-term rise Monday evening if the Norwegian oil and gas sector strike is not averted. Labor negotiations between Norway's oil workers and employers over pay and pensions failed – yet again – yesterday. The country is now just hours away from the first complete shutdown of its oil industry in decades. (Already, the strike has cut oil output by 13%, according to Reuters.)

    Then there are the figures coming out from the Energy Information Administration (EIA) on Wednesday, which will almost certainly show a drawdown on U.S. inventories. Normally, that would also push up prices.

    However, absent an Iranian move against the Strait of Hormuz or a major refinery accident somewhere in the world, the rise will be less than usual.

    That's because right now, four things are tempering the oil price rise:

    To continue reading, please click here…

  • Oil Prices Look For Steady Rebound

    Why have oil prices been down lately even with the Iran oil embargo in place, and when will oil prices pick back up?

    Dr. Kent Moors, Global Energy Strategist for Money Morning, tackled those questions today (Friday) on Fox Business and gave his latest prediction on the future for oil prices.

    Despite the high level of worldwide supply for oil, Moors expects oil to rise from the amount of global demand. He noted that the effects of the embargo have been overshadowed by Europe's debt crisis and once those sanctions are felt oil will start to rise.

    You can see all of Moors' analysis on oil prices in the accompanying video.