The Easiest Way to Cash In on the Entire Energy Sector in 2020

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Energy abundance – from multiple sources – is about to unlock staggering gains for investors.

But if you just "play the majors," you may find yourself with less than your fair share.

With a few rare exceptions, the windfall profits in the months ahead will be reserved for a handful of small niche companies poised to become the biggest winners as energy truly goes global.

Make no mistake: You will make more money in energy investments over the next several years than in any other sector and during any other period in your lifetime.

And now you won't have to fret over what this new market means, what elements are driving it, or what to invest in.

Why the Aramco IPO Doesn't Impress Me... Yet

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Trade on the Tadawul, the local Saudi Stock Exchange, began today for the largest initial public offering (IPO) in history.

Following the initial trading, Saudi Arabia has touted the IPO in mega state oil company Aramco as a success.

And at a glance, this assessment appears to be on target.

The first major success is this: It happened. For the first time the Saudis have allowed private ownership of a state-run enterprise, although admittedly less than 2% of it.

Then, there is the valuation. Selling 3 billion shares at 32 riyals ($8.53) each amounts to $25.6 billion. That makes this IPO the largest IPO in history, eclipsing even the float of Alibaba back in 2014, which was valued at $21.8 billion.

It also puts an overall value on Aramco of $1.7 trillion, making it, once again, the largest ever seen and close to the $2 trillion initially projected by Crown Prince Mohammad bin Salman prior to the first abortive attempt at an IPO over two years ago.

In addition, global interest may well increase the number of shares available from the placement. Currently, the number of shares amounts to only about 1.5% of the company. That could increase to about 2% if an option to sell additional shares is exercised. And there is some evidence that the outside interest is growing.

We Could Be Looking at War in the South China Sea

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Many people would do anything to have a crystal ball into the future.

You could see if you're going to get that dream job…

You could find out what your children will become when they grow up…

You could know where you'll be when you retire.

The possibilities are endless if you could see the future.

Many of my colleagues, if asked the question of what they would do if they could see the future, would say that they would like to look at the financial markets and pick the best trades to make them rich.

I'd say that's a popular choice.

But for me, if I had such a power, I would be looking at more than just the financial markets.

There are many factors involved in what makes a particular company a good trade, and much of it depends on geopolitics.

So, if I had a crystal ball, I would be looking at the geopolitical situation only a few months into the future.

On the other hand, with today's geopolitical tensions, I don't think I really need a crystal ball to tell me what's going to happen.

Oil Prices Should Be Going Up - Here's Why They're Not

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As I write this, oil prices are retreating (again) and approaching two-month lows. This decline is underway despite some rather heavy supply pressures that should be moving it up.

Thus, the question is: Why?

The overall dynamics would seem to indicate higher prices:

Things like the reimposition of U.S. sanctions against Iran; a continuing collapse in Venezuela; widening impact from a festering civil war in Libya; a Russian export suspension mess on the world's largest pipeline remaining unresolved; an OPEC+ emphasis on production restraint; extraction problems in Mexico; and even discount pricing spreads in Canada have moved supply concerns to the front burner.

And that's just the warm-up.

Filed Under: Oil Tagged With:

What You Need to Know About the Oil Price Comeback

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The price of crude oil is renewing an upward march.

I've said it before, and I'll say it again. It's quite the breath of fresh air after the collapse we experienced at the end of last year.

As of trading close yesterday (2:30 PM for oil in New York), West Texas Intermediate (WTI), the benchmark crude rate written in New York, was up another 1.6% for the day, 5.3% for the week, and 10.6% for the month.

Year to date (YTD), WTI is up a hefty 37.8%.

Meanwhile, Brent, the more widely used global benchmark set daily in London, is better by .5%, 2,4%, and 5.4%, respectively, with a YTD gain of 28.9%.

Cash In on This Lucrative Opportunity in Renewable Energy

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As many Oil & Energy Investor readers may know, my home base is in sunny Florida (a fact I'm quite grateful for during these winter months), while my team operates out of Baltimore, Maryland.

I recently told one of my team members that he should be very proud of his home country, Sweden.

Among Sweden's many other renewable energy accomplishments – not the least of which is meeting its 2030 renewable energy goals 12 years early – it just made wind energy history.

Now, the world's energy novel is a constantly evolving, many layered story, and renewables are playing a bigger and bigger role.

You might say they're edging their way into "main plot point" status.

The International Energy Agency reported that in 2017, renewable energy saw the highest growth rate of any other energy source.

All's Fair in War and Oil

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They say all's fair in love and war.

I say all's fair in war and oil.

When it comes to digging for "black gold," any stretch of land, water, or ice is fair game.

You can go from the deserts of Saudi Arabia to the dry dust of West Texas to the waters of the coastline to find this vital fuel…

Not to mention the cold desert of the Arctic.

It's long been known that the Arctic holds oil frozen under its icy top layer, and getting to it is quite the challenge.

More so, even, than extracting oil out of the waters of the ocean.

The Arctic region encompasses 19 geological basins – only half of which have been actually explored.

In 2008, the United States Geological Survey estimated that there are 90 billion barrels of undiscovered, recoverable oil in 25 identified areas in the Arctic – 13% of all the undiscovered oil in the world.

Now, despite the challenges of the region, many nations around the world are determined to take control of this land and its abundant natural resources.

Which leads to some increasing tension, adding to the existing conflict I've discussed many times.

The Arctic situation has remained fairly stagnant for the last several years, at least compared to other areas of oil exploration.

Filed Under: Oil Tagged With:

The Implications of Qatar Leaving OPEC

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On Dec. 3, a week-long rumor finally saw the light of day.

I had heard it prior to my departure for Singapore last week, and it had at the time been the substance of some talk on its potential importance – if true – during our meetings.

Well, it is no longer just a rumor.

On Monday morning, Qatari Energy Minister Saad Sherida al-Kaabi announced that the Persian Gulf state was leaving OPEC, effective Jan. 1, 2019.

Qatar is a minor oil producer, averaging some 600,000 barrels a day, putting it at the bottom of the OPEC ladder along with Ecuador.

However, it is a major natural gas producer and the world's leading exporter of liquefied natural gas (LNG).

But there is a more important reason why the Qatari departure from OPEC is likely to shift the regional tensions into a higher gear.

And it's not about oil.

How You Can Profit from Solar's Lead in the Renewable Energy Industry

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My life has taken me in many different directions.

From working as an intelligence officer for the American government to consulting for dozens of governments around the globe in the world of energy, I can't claim that my life has been dull.

However, although my life has taken a trajectory that I may not have expected in my youth, I do truly enjoy what I do.

And when it comes to energy, there are many things that excite me.

One thing I can tell you is the most exciting thing about seeing and knowing the latest in energy is that it is a constant, ever-evolving industry.

And by that I mean it is always working to improve itself.

These days, with the oil market in shambles (though, as I wrote about last week, it is beginning its recovery), I've been keeping an eye on the renewable industry.