Category Archives: Oil & Gas

MLPs

In the news  …

A New York bankruptcy judge said Tuesday that Sabine Oil & Gas Corp. can ditch contracts it inked with natural gas and condensate gathering companies, a development that could have repercussions throughout the midstream oil and gas industry as the drillers they contract with flounder amid low oil prices.

Residential US electric bill

According to a recent release from the U.S. Department of Energy – Energy Information Administration (EIA), the average residential monthly electric bill was $110.21 in 2013. The most expensive utility bill for homeowners is the electric bill, accounting for approximately 9% of expenditure on housing according to NAHB tabulations of Bureau of Labor Statistics (BLS) data on consumer expenditures.

EIA-average-residential-electric-bill-PDF

More Oil News

In the news ….

“Sources participating actively in the oil trade, both physical trading and warehousing, tell Benzinga an unnamed fund forced by NYSE to liquidate at the 2:30 cash close for oil was the culprit of the massive selloff in S&P 500 futures.”

The Middle East and Oil

Dr. Hossein Askari, a professor at The George Washington University, is reported to have said:

“If there is a war confronting Iran and Saudi Arabia, oil could overnight go to above $250, but decline down to the $100 level. If they attack each other’s loading facilities, then we could see oil spike to over $500 and stay around there for some time depending on the extent of the damage.”

MLPs

In the news …

“Enterprise Products Partners L.P. (NYSE:EPD) Director Randa Duncan Williams acquired 3,830,256 shares of the firm’s stock in a transaction dated Monday, January 4th. The shares were purchased at an average cost of $26.11 per share, with a total value of $100,007,984.16. The transaction was disclosed in a document filed with the Securities & Exchange Commission.”

Note that the significance of the report and the underlying filings are confusing.

Energy

OilPrice.com on oil prices …

“OPEC revenue is down some $500 billion a year, and counting. Saudi Arabia’s troubles are well documented – the kingdom’s budget deficit is expected to come in around 20 percent of GDP this year, with a similar outlook for 2016. The International Monetary Fund estimates that Saudi Arabia will run out of cash in five years barring any oil price turnaround or drastic spending changes.”

Oil

Oil remains front and center in the news …

Oil may have closed higher Tuesday, but it doesn’t seem like oil is anywhere near a bottom, Stephen Schork, founder and editor of The Schork Report, told CNBC.

He pointed to action in the future’s market as a telling sign, specifically a big increase in bets that oil will go under $40 by Jan. 21.

“If there is an active market being traded in sub-$40 crude oil today, I don’t want to venture that we are anywhere near the bottom at this point,” Schork said in an interview with “Closing Bell.”

“When we get to zero, that’s when I’ll be pretty confident that the bottom has been put into oil prices at this point.”