A Rift Emerges in the Oil Industry as the Conversation Deepens in Singapore

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Here in Singapore, things influencing the oil world continue to make themselves clearer.

Recently, the oil market has been slammed with a tidal wave of volatility, and back a few weeks ago we had the largest drop in oil prices since 2015.

However, since I've been attending meetings here at OSEA 2018 in Singapore, one signal that the implosion in oil prices is nearing its end has surfaced.

In each of the last several downward cycles in the price of both daily pegged benchmarks (West Texas Intermediate in New York and Brent in London), a divergence has emerged prior to the recovery of pricking levels.

That divergence has begun over the past few trading sessions.

It amounts to a recovery in the market prices of crude oil and natural gas production companies while the underlying price of oil continues to move downward, and it has already become a topic of conversation here in Singapore.

From the floor, the issue even made its way into my plenary address before the OSEA 2018 conference.

Why "the Entire World Is Worried" About the U.S. and China

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The geopolitical situation – particularly between China and the United States – in these past few weeks has caught and held my attention like nothing else.

I'd call it understandable.

I'm currently in Singapore for Asia's annual oil and gas conference, and I'm getting an earful about the politics between my country and theirs.

Of course, the world is aware of the current state of the U.S.-China trade war. With tariffs coming from both ends, neither country is backing down.

I've discussed this in detail in many previous Oil & Energy Investor columns.

But things are getting hotter in this particular geopolitical realm.

Now, while the conference that I'm attending covers three days of intense energy-specific discussions, there are other conferences and summits going on in Asia to discuss other matters of global importance.

In particular, one that was just this past week was the Asia-Pacific Economic Cooperation, or APEC.

Something Solar This Way Comes – and It Could Mean Big Profits for You

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U.S. presidents through the years have all had very different ideas about the energy industry.

In 1979, President Jimmy Carter spearheaded what would become a renewable revolution, and placed 32 solar panels on the White House roof amid a national energy crisis caused by the Arab oil embargo.

He was the first president to do so, and the first to take renewable energy seriously as a form of reliable and efficient energy consumption.

In the words of President Carter, "In the year 2000 this solar water heater behind me, which is being dedicated today, will still be here supplying cheap, efficient energy… A generation from now, this solar heater… can be just a small part of one of the greatest and most exciting adventures ever undertaken by the American people."

However, in 1981, President Reagan, who had very different ideas of how energy should be collected, ordered those solar panels removed. In fact, that was one of the first things he did upon taking office. Apparently, he considered them "a joke."

Half of the original 32 panels were moved to Unity College in Maine in 1992 to be used to heat water.

And in 2010, President Obama, who was a well-known advocate of renewable energy, ordered solar panels reinstalled at the White House.

Now, as longtime Oil & Energy Investor readers will know, I'm fully on board with expanding the United State's hold on renewable energy.

How to Use Options to Play the Next Oil Wave

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Crude oil prices are rising again.

Much to the relief of oil investors.

The rise has been reflected both by the West Texas Intermediate, the benchmark used for futures contracts set on New York, and Brent, the equivalent set daily in London.

As of close of trade Sept. 19 – which happened at 2:30 for oil – WTI was at $71.12 a barrel, the highest since July 10. Meanwhile, Brent closed slightly higher at $79.23.

I have previously addressed the main reasons for why the price is moving up here in Oil and Energy Investor, and for some time now, the supply side of the market balance has been tightening.

Thanks to this, there is something interesting stirring in the oil sector – something that manifested in a recommendation to my Energy Inner Circle premium subscribers just a couple days ago.

Here's Why Your Gas Prices Spiked This Summer

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The primary summer driving season is over, and Labor Day, the last vacation weekend of the season, is fast approaching.

Travelers are winding down their end-of-summer vacation plans as we head into the autumn, and traffic between cities is lightening.

Normally, this time of year produces a decline in retail gasoline prices as the driving season ends and autumn and winter hibernation begins. And refineries are already switching primary production cuts from retail gasoline to produce more low-sulfur heating oil for the upcoming colder months.

In this 2018 season, the expected adjustment downward is not kicking in as in years past.

So, why are we witnessing an unusual increase in costs at the pump?

"X" (Doesn't) Mark the $1.4 Trillion Spot in West Texas

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Sailing the oceans in search of treasure is something of a fantasy for a lot of people.

Just imagine it, the gentle rocking of the boat…

Learning the language of the sea…

Manning the big, wooden ship's wheel…

The eventual end goal: finding the buried treasure on the deserted island that you located using the ratty, ancient map with a giant black "X" marking the spot.

Usually this type of imagining involves a hook for a hand, eyepatches, peg legs, and other such pirate accessories.

But it's the buried treasure that's central to this dream.

Unfortunately, in real life, "X" marking the spot is just that… a dream.

There is, however, unmarked buried treasure.

The U.S. Is Quickly Becoming the Biggest Oil and LNG Exporter in the World

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About 13 years ago, I was at a meeting of energy experts close to Dominion Energy's liquefied natural gas (LNG) terminal in Cove Point, Md.

At the meeting, it was unanimously concluded that at least 15% of U.S. natural gas demand would be met by LNG imports within the next decade.

In those days, nearly 70% of the U.S crude demand was projected to be met by imports.

At that time, American oil production was not even 7 million barrels a day, with well over 60% of total volume coming from "stripper wells" – each providing less than 10 barrels daily, but many more barrels of water than oil.

Back then, we were aware of the potential lurking in shale, tight oil, and gas…

But nobody could have foreseen (myself included) the largesse LNG would provide.

Make a Killing from the Trade War While Everyone Else Focuses on the Headlines

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To be perfectly honest, the political saber-rattling these days has gotten a bit old.

It seems every day we're hearing news of another country threatening the United States with sanctions, tariffs, or just vague retaliation for comments from the White House.

And in response, the Twitter audience receives constant entertainment in the form of retaliatory rejoinders from our commander in chief.

But despite the relationship drama between the world's most powerful nations, it's still important to know what's going on.

If only to be properly prepared.

Why Oil Is Having Its Most Volatile Week of the Summer

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If there's any industry whose sentiment can go from hot to cold in just the span of a week, it's the oil industry.

That's how this past week has been, with both WTI and Brent – the U.S. and global benchmarks, respectively – down more than 7% since July 11 when prices logged their worst daily drop in over a year.

Naturally, this has analysts and talking heads across the industry in a fit of frenzy. After all, WTI had been on an unstoppable long-term rally, gaining over 23% since the start of the year.

Let them worry.

I'm not the least bit surprised about the recent pullback. With such an incredible run to three-and-a-half-year highs, prices were bound to get overheated and drop below the psychologically important $70 at some point.

Geopolitics have been so front-and-center lately that despite boosting prices to record highs earlier this month, they have now turned on us and dragged prices back lower.

The Solar Program That's Saving Residents Thousands

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If you run into an opponent of solar energy and the renewable market, you might hear them say something to the tune of how expensive it is to install solar panels or to upkeep wind turbines.

And you might be tempted to agree. After all, when solar energy was in its infancy, back in the 1950s, the cost was astronomical and unrealistic and far beyond the reach of the average person.

But don't let that deter you from the reality of modern solar energy.

These days, average homeowners could find it well within their means to go solar – with a bonus to boot, thanks to new initiatives rapidly spreading across the country and the globe.

Not only could you be saving money on your electric bill month after month and year after year…

But as I'm about to explain to you, some Americans are already set to receive several thousands of dollars in bonus cash for switching to solar.

Filed Under: Oil