Posts tagged “Chevron”
Over the past two years the spot price of natural gas fell from nearly $5 per million British thermal units (MMBtu) in June 2011 to less than $2 per MMBtu in April 2012, before beginning a steady climb back to the current level of about $4 per MMBtu. Prices have been supported by resilient demand as well as diminishing supply from some of the more mature shale formations and the depleted wells offshore.
Stronger natural gas prices are good news for some and bad news for others. Natural gas producers like Chesapeake Energy Corporation (NYSE:CHK) were hit especially hard as gas prices fell. Between June 2011 and April 2012, CHK’s share price declined 25 percent. But over the past 12 months, CHK has rallied 36 percent as gas prices recovered. Since Chesapeake is the nation’s second-largest producer of natural gas, it’s not surprising that its shares track the price of the commodity. The company isn’t diversified, so it is nearly a pure play on natural gas.
I just finished writing the 4th chapter in my book tonight. This chapter was a primer on renewable energy, covering biomass, hydropower, wind, solar, geothermal, and ocean energy technologies. Interesting tidbit from this chapter: The world’s largest producer of geothermal power is the U.S. oil company Chevron. How many people would have guessed that? The chapter kept me busy this week, but fortunately I have a timely guest post available. The following guest post from OilPrice.com addresses last week’s announcement of a potential half billion dollar investment by several government agencies to develop advanced biofuels. ————————– On 16 August President Obama announced that the U.S. Departments of Agriculture, Energy and Navy will invest up to $510 million by 2014 in… Continue»
Still traveling until middle of next week (in London right now, back to Amsterdam tonight, California tomorrow), so limited communications from me until then. Lots going on in the world of energy. Oil has cracked $100 again (and again), which is a major correction in just a couple of months. The House passed a drilling bill, but as Geoff Styles accurately points out (and his detailed look is definitely worth a read), there are some ‘poison pill’ measures that will severely limit the chances that the bill will become law. In the interim, I was just e-mailed a copy of a speech that Chevron CEO David O’Reilly delivered a couple of days ago on the topic of energy policy. Since… Continue»
I have gotten out of the habit of visiting Oil Watchdog whenever I want a bit of energy-themed comic relief. They are so ‘over the top’ and transparent that it really hasn’t been necessary to debunk them. As I have documented before, on the one hand they accuse oil companies of not supporting alternative energy or donating any of their profits. Yet where oil companies are funding alternative energy and donating to colleges, they are accused of ‘greenwashing’ and attempting to control university research. You can see some of the articles I have written documenting their intellectual dishonesty and inconsistent ‘reporting’ here. As you can see, they will even take a rumor (“I absolutely can’t vouch for the truth of… Continue»
CNN is recommending oil stocks for 2008: Oil stocks: Best picks for 2008 They cover the integrated oil companies, the independents, the refiners, natural gas, and oil services. Here is what they said about the majors: Experts generally expect nearly all oil stock sectors to do well in 2008 – although not as well as in 2007. If you think the price of crude is going to go down, investors like Mark Gilman, an oil and gas analyst with the Benchmark Company, say go with the big boys. With their diversification, high dividends and low stock prices compared to revenue, big oil companies that produce, refine and market oil and natural gas like Exxon Mobil (XOM, Fortune 500), BP (BP),… Continue»
Consumer organization Oil Watchdog has admitted to accepting money from Chevron. This is odd behavior for an organization that has been fiercely critical of universities and museums that accept donations from oil companies. Oil Watchdog staff member John Simpson, after having accepted the contribution from Chevron, defended his actions by claiming he gave the money to a friend. Simpson also argued that Chevron didn’t really need the money anyway. Following this admission, Simpson made a plea for more funding from readers. Must be tough times for Oil Watchdog’s trial lawyer backers. —————————– * Note: When reporting on Oil Watchdog’s misdeeds, I will try keep to the journalistic standards they have set. The only difference is, unlike Oil Watchdog’s reporting, what… Continue»
I must be in Bizarro World: Watching Conoco’s Next Move Nope, no surprise today in ConocoPhillips’ third quarter profit report… down some on lower refining profits, up some on higher oil prices. The net effect was a 5.2% drop from last year’s comparable period. One interesting point in the report was that Conoco, unlike the rest of Big Oil, kept its refineries running at 97% of capacity in the quarter. Nationally, the figure was probably under 90%. The big question is whether Conoco and other refiners will cut back on making and storing gasoline in the next few months–which will determine pump prices next spring. If refiners keep supplies low and try for the profit percentage they got last May… Continue»
I am going to have to start issuing my own press releases. That’s what our good friends at Oil Watchdog – the oil-hating arm of the FTCR, like to do. They write their own press releases – daily – and use as reference material other press releases they have written. Their sources are frequently “Insider”, who frequently says very silly things. Not the kind of things an actual insider would say. Things like this: “Oil companies have cut back production in refineries to a mere 87 percent of potential and the surplus in storage tanks is drying up fast.” Sounds like someone never heard of fall turnaround season. You know, that time of year – every year – where utilization… Continue»
A CNNMoney article is warning investors that oil, and oil company stocks are overvalued: Beware Big Oil stocks “Nobody in his right mind thinks this oil price is sustainable or justified by market fundamentals,” said Fadel Gheit, a senior energy analyst at Oppenheimer. “The higher prices go, the greater the risk for downside potential.” Over the last month the price of U.S. crude on the New York Mercantile Exchange has surged nearly 20 percent, hitting a record high of $83.90 a barrel last week. Yet the AMEX oil and gas index, which tracks both large and small U.S. oil companies as well as refiners and oil service firms, has risen just over 6 percent over the same time. The big… Continue»
Note: This will be my last time to post in this format (a block of stories in one post). Others have commented, and I agree, that this is a bit unwieldly. Besides that, I have been sitting on some of these stories for nearly a week. Also, it is taking me more time to link up and format these stories than if I just posted them one at a time as they pop up. By staying out of the comments section and taking my e-mail address offline, I have freed up a lot of the time that I had lost. So, I am just going to post things as I always have, but I still won’t be commenting. Sometimes that… Continue»