Fracking

U.S. Shale Oil Producers Following Lead of Iron Ore Firms

U.S. Shale Oil Drillers Committing Seppuku

Apparently Economics 101 is no longer a required course for someone to become the CEO of a major natural resources company. Rudimentary economics (and common sense) says that when the price of a commodity collapses because of oversupply, you cut back on production. This allows supply and demand to eventually rebalance, stabilizing prices. But the...

Oil Sands From Canada: Saudi Arabia's Real #1 Target

Saudis’ Real Target May Be Canadian Oil Sands

With oil trading in the $60s, most investors are focusing on how that price is affecting U.S. shale drillers. Indeed, the industry is struggling. North Dakota, for example, is producing less oil now than it did in December when production peaked at 1.23 million barrels per day (bpd). That’s no small consequence, but the aftershocks...

Can Rig Counts be Used to Determine Future Oil Production?

Do Rig Counts Matter These Days?

Focusing on rig counts to try to determine the velocity of future oil production is a fool’s pursuit. Sure, they’re a good measure during boom times. But during busts, seasoned investors know that only looking at the number of rigs doesn’t give them the whole picture. Just check out the most current numbers from the...

U.S. Silica Shares Boosted by Innovative Fracking

Innovative Fracking Boosts Silica Demand

No one in the oil market was spared from a tough year. Even U.S. Silica (SLCA), a poster child for the shale boom, has seen its shares rise and fall with the industry. But this company’s fortunes may not be as damaged as many investors believe… You see, a new, cheaper, and more-efficient fracking method...

Oil Inventory Problem Dampens Price Recovery

Oil’s Inventory Problem Dampens Price Recovery

The industry’s appetite for oil has simply become insatiable over the last six months. Indeed, the United States is producing and importing more oil today than it was a year ago, despite oil prices plunging more than 50%. And this immense level of production is making it very difficult for prices to recover in any...

Methane Emissions to be Regulated by EPA

Obama Lays Smackdown on the Energy Industry

In a fight, when an opponent is down and hurt, the rules of fair play dictate that you back away and give your foe a moment to catch their breath. But those rules don’t apply when it comes to politics… Even casual observers of the oil and gas industry can see that it’s hurting bad....

NGL Market Is Worse Than Oil in United States

NGL Market Is Worse Than Oil’s

Some of the U.S. shale naysayers get to say, “I told you so,” these days. Many shale opponents harped on the huge amounts of natural gas liquids (NGLs) that are produced as a result of fracking and what to do with it all. NGLs include some very useful products like propane, butanes, natural gasoline, and...

Statoil: The Best Oil and Gas Global Play

The Best Oil and Gas Global Play

Many companies are struggling to survive the oil price war raging between OPEC and the United States. Some will make it out alive, though wounded, and some will fall. With all the players on the field during this tumultuous time, it’s hard to know where to invest. But I’ve seen the signs, and I think...

Carbon Dioxide: Eco-Friendly Solution for Coal and Fracking

Fracking Industry Finds a New Savior

Carbon dioxide is harmful to the atmosphere and the leading cause of pollution. Even countries like China and India recognize that they need to reduce their carbon footprints. Still, few countries are willing to give up coal as it’s the cheapest and most plentiful source of energy. So the industry is looking to “clean coal”...

Fracking Industry Damaged by Saudi Arabia Oil Pricing

The Fall of U.S. Fracking?

The U.S. oil industry has taken a beating from the recent drop in oil prices, which have plunged more than 25% since the summer. Oil and oil service stocks across the board have been bruised… but none more so than those related to the fracking industry. You see, fracking is an expensive process compared to...