*** NOTE TO MEMBERS OF Exodus: The Option Addict will be joining the Pelican Room for all of April ***
It’s not even a maybe at this stage in the oil story. With Saudi Aramco scheduled to IPO at a $1 trillion valuation, there’s too much at stake here than to let a bunch of losers dictate the direction of prosperity.
Oil had been in a bear market. All of that has ended now, only good times ahead — fuckers.
Frac sand plays like $SLCA, $EMES and $CRR are definitely in play here. Personally, I’m thinking ahead and would rather play a the plastics, via $WLK, who used natural gas to produce its products and not expensive crude. The subsequent result of much higher crude prices is greater demand and pricing power for WLKs many products.
Markets should proceed higher, regardless of what the Fed heads say. I’d be wary about following this rally into summer. But we’re just getting done with March now and there’s a thing least 2 months left of market greatness to behold.
Today’s top plays were in retail and basic materials, the two sectors that were hit the hardest. Short squeezes are coming up.
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$HCLP
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no LP’s for foreign investors…IRS paperwork headache not worth it….
$FMSA and $SND are two more sand names… SNS.to wonder if they will list in the USA. Great story unfolding in this name. I am in it early and harvested free shares so please DYODD.
FLT couple high beta names/ lotto picks PWE and BTE….. again buyer beware…. PWE has cleaned up ts balance sheet. BTE carries some debt but its capex programmed is geared to the EagleFord basin play.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
The BTA has really helped to drive the Canadian mid caps down to a significant discount to its US peers. This week looks like value investors have arrived and shorts have begun to close out winning hands.have arrived
Montney v. Permian ( #’s are ballpark valuations) These are the two best basins in North America
2018 EV/DCAF 5.2 v. 7.5
2018D/CF 0.75 v. 1.2
Nope, my TA tells me crude will retrace to the upside, $54.25 and then plunge below $47.45 by mid April to hammer out a bottom.
@Sarc/
that will confuse the most amount of participants and really set the stage for the strong hands… we will see
http://fingfx.thomsonreuters.com/gfx/rngs/USA-SHALE/0100409W0N9/index.html
NEW YORK, March 24 (Reuters) – U.S. shale producers are drilling at the highest rate in 18 months but have left a record number of wells unfinished in the largest oilfield in the country – a sign that output may not rise as swiftly as drilling activity would indicate.
During the 2014-2016 downturn in global oil prices, the number of wells left incomplete grew as companies shut down rigs, laid off workers and retreated from the fields. When prices picked up, operators were expected to pump the oil from those incomplete wells before spending money on drilling new ones.
Instead, the number of incomplete wells has risen. A record 1,764 wells were left unfinished in the Permian in February, according to U.S. government data going back to December 2013. In February alone, 395 wells were drilled and only 300 completed. That was the highest drilling rate in the Permian in two years.
Reuters interviews with more than a dozen well completion service providers, oil and gas lawyers and industry experts show that some operators are drilling because their leases require them to do so within a specified time limit to keep their leases. But they may not be required to actually pump the oil immediately after they have drilled the hole.
The value of land in the Permian has rocketed as oil prices recovered to around $50 a barrel, so oil firms are now scrambling to do the required drilling to keep leases they had left dormant.
Fracking is more expensive than drilling and is time consuming. As much as 70 percent of well completion costs are tied to fracking, while 30 percent is for drilling, experts say.
Fracking crews are in short supply, which is another reason that oil firms have delayed completion.
If all the incomplete wells in the Permian pump instantaneously, output from the field could jump as much as 300,000 barrels per day (bpd), according to consultancy Wood Mackenzie.
In February, the field accounted for about 2.1 million bpd, or about 23 percent of total U.S. crude output of about 9 million bpd, according to U.S. government data.
( these are just a few highlights from a much longer article).
Pretty much all the DUC’s are in the Bakken. Most of the drilling is being done in the Permian and Eagle Ford where the costs are much less. Companies will pump from the new Permian wells until the Bakken wells become profitable above $60.
$40 to $60 range on oil for a long time, dividend plays only imo.
so what are your recos Soupy?
Dividend plays? Like Exxon Mobil? Insane. You go for the growth prospects backed by massive P/E $$$.
Before someone engages in a discussion about risk to drinking water, live the life.
I moved from a house with superb county tap water quality to a place where the well water is so bad, that bottled water (or reverse osmosis filter) is necessary. It’s awful, not just the cost, but the idea that tap water cannot be used for anything that may find it’s way to the body, including rinsing dishes.
I get the impervious layer concept that makes fracking theoretically safe. I’m researching wells and learned all about it. Not sure I want t trust a corporation to execute “theoretically safe” particularly when there is a lag time between their action and any resulting harm to people.
County has no quality test record of the well installation in this house because the house was built 80 years ago. The well could be pulling water from just 35 feet down, which is a bad feeling. No way the early natives who built this house drilled the well to 400 feet where the highest quality aquifer water is here.
The overriding problem is bottled water is a newer, growing business with major profit potential. So, corporate America has no economic incentive to respect water quality. It’s another way to make money and gouge with monopoly potential.
I say preserve USA natural resources, and send the middle east depreciating, melting dollars to pump their only natural resource dry.