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December 22nd, 2014

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editorials

 
Why Russia Will Halt the Ruble’s Slide and Keep Pumping Oil
Doug Casey  Dec 20  

The marginal cost, oil and bears!
Thomas Chaize  Dec 10  

Russia and China’s Natural Gas Deals Are a Death Knell for Canada’s LNG Ambitions
Doug Casey  Dec 06  

Are Oil Prices Ready to Break out of the Trough?
Frank Holmes  Dec 05  

OPEC to US oil producers - "You’ll break before we do."...
Clive Maund  Dec 01  

»» more editorials in the archives

market data


Ux U3O8 Price (Uranium)Dec 15th, 2014
$37.00 -$0.75 www.uxc.com

»View Commitment of Traders.

expert analysis & newsletter briefs

Input Capital Corp.

"We continue to maintain a positive long-term outlook for Input Capital Corp. . .the company's balance sheet continues to remain very healthy due to the strong cash position. At the end of Q2/15, the company had $64.1M cash. The company maintains no debt and very limited liabilities." (12/16/14) - Daniel Iwata, Fundamental Research Corp.

Madalena Energy Inc.

"Madalena Energy Inc. expects to fund its 2015 capital program from cash flow and existing working capital. Madalena maintains a strong financial position, with positive working capital of ~$18M and no debt at September 30, 2014. The company highlighted high realized crude prices in Argentina despite the selloff in global crude oil prices as supporting strong cash flows through 2015." (12/16/14) - Darrell Bishop, Haywood Securities

Madalena Energy Inc.

"Madalena Energy Inc.'s 2015 capital program of $48.2M will focus on the company's strategic unconventional resource plays in Argentina with additional capital for the company’s conventional development and optimization. . .regulated prices in Argentina provide stability. . .the company expects its 2015 program to be fully funded from cash flow and existing positive working capital." (12/15/14) - Michael Charlton, Industrial Alliance Securities

Cub Energy Inc.

"Cub Energy Inc. is drilling in Ukraine. Unfortunately, more than half of its production is in East Ukraine, a conflict area. It is still producing, but it cannot drill more wells. It is, however, getting good results from West Ukraine. Cub is a good, long-term Ukraine gas play." (12/11/14) - The Energy Report Interview with Chen Lin

Mart Resources Inc.

"Mart Resources Inc. has been my home run of the past few years. I've already received a dividend that was more than my original investment. Mart just announced the new pipeline has started flowing. Once the new pipeline is fully ramped up, we should see the production triple, which will generate huge cash flow. Mart's production cost is exceedingly low." (12/11/14) - The Energy Report Interview with Chen Lin


featured companies

Avanti Energy (TSX-V : AVN.V)
Enhancing Oil Production in Brazil and Colombia
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Pan Orient Energy (TSX-V:CAN)
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Quantum Energy (QEGY.PK:OTC)
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Super Nova Minerals Corp. (SNP:CNSX, OTC:SNOVF)
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The Energy Report ()
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Torchlight Energy (NASDAQ: TRCH)
Oil Drilling and Working Interest in Oil Projects
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from the publisher
  Robert J. Moriarty

Welcome to 321energy.



The Energy Report

Phil Flynn
http://www.pricegroup.com/
pflynn&pricegroup.com


The Energy Report Friday December 19, 2014

Get Prepared For $40 Oil

Oil fails to hold a rally as Russian president Vladimir Putin says get ready for $40 a barrel oil and oil traders did. Putin in his marathon press conference yesterday that left many wondering what is less stable, Putin or the Russian economy? The President stayed defiant against the West as the Russian economy continues to crumble all around him. Putin claimed that the economic problems in Russia are not his fault, it is because those guys in the West keep giving him grief. He said that sanctions accounted for at least 25 percent of the ruble's fall even though Russia's failure to ease its overwhelming dependence on oil and gas exports was also to blame. Putin claimed the West's pressure on Russia "is not about Crimea, the West wants our skins hanging on the wall. Sometimes I think, maybe they'll let the bear eat berries and honey in the forest, maybe they will leave it in peace. "Maybe our dear bear should sit quietly, not chase piglets and just eat berries and honey. The west wants to turn the Russian bear into "taxidermy." "Maybe then he will be left alone?" "They won't give up because they will always try to chain him," Putin said. "And as soon as they chain him, they'll rip out its teeth and claws, and the dear bear won't be needed anymore .Once they've taken out his claws and his fangs, then the bear will become a stuffed animal, the issue is not Crimea. The issue is that we are protecting our sovereignty and our right to exist."

You almost have to feel sorry for him. Kind of pathetic. So pathetic, French President Francois Hollande is suggesting that maybe Europe should ease up on Russian sanctions before Vladimir really goes off the deep end. After his speech it seemed that any sense of stability in the ruble or the Russian economy will not be chasing any piglets anytime soon. They may not even be able to afford berries and honey. Auto makers are pulling out of Russia or suspending sales because they fear the collapses of the ruble is another sign that the Russian turmoil will spread outside of Russia. General Motors Co. and Audi suspended sales.

OPEC, in the meantime, is keeping up the pressure on Russia and every other oil producer in the world. The Financial Times reports that "Options that give investors the right to buy insurance against bond defaults have exploded in popularity this year as asset managers and hedge funds seek to affordably offset the risk of a big blow-up in credit. Trading volumes of the instruments - known as credit index options or swaptions - have jumped 148 per cent in the past 12 months, with about $1.4tn of the instruments exchanging hands in 2014 compared with $573bn in 2013." Of course the reason is that we are seeing a lot of stress in the highly leveraged energy space.

Zachary Toliver, of Shale Plays Media, wrote "With oil prices nearly slashed in half from earlier 2014 prices, analysts are predicting that up to 550 drilling rigs will remain out of commission over the next few months." Signs of a slowdown have rolled in quickly since last November when members of the Organization of the Petroleum Exporting Countries (OPEC) refused to cut any of their oil and gas production. Reuters reported that in Houston, Texas, the first oil industry layoffs have been announced. Also, realtors there are predicting a sharp decline of up to 12 percent in home sales next year.

Additionally, companies in the West Texas Permian Basin have begun the process of "cold stacking" their rigs. This is a process by which a production company releases or stops drilling operations for their leased rigs. Recently, oil companies cut 20 rigs in the Permian fields and well permits in the Eagle ford fell nearly 30 percent in November.

Fuel Fix , wrote that some private producers "believe that there will be more than 500 rigs idling in the next 60 days." This means more than a quarter of active U.S. rigs will be off the market soon. Well the good news of course gas prices! Bloomberg reported that "U.S. drivers are paying less than $2.50 a gallon at the pump for the first time in more than five years. Retail gasoline prices slipped to an average $2.477 a gallon last night, data from the Heathrow, Florida-based motoring group AAA showed. That's down from this year's peak of $3.696 in April, and the first time the average has dipped below $2.50 since October 2009. The AAA projects prices will drop to between $2.25 and $2.40 a gallon by New Year's Day, making for the cheapest holiday gasoline since 2008, Michael Green, a Washington-based spokesman for the motoring group, said in an e-mail.

Crudes failure was key but we held the lower end of range! Be on guard for a sharp recovery rally put then get ready to sell into it!

Check out Price Links Video series and see what goes on "Behind The Scenes" With Ellie Heckman with the Fox Business Network! https://www.youtube.com/playlist?list=PLDq9JQANqxRxCBaHqunzBT4Frxitjw-XV

We have written many times about a new era for oil and gas and it is here! Make sure you get energy news if you follow me on Twitter @energyphilflynn and you can also join me on Facebook. If you have any questions or if you want to get my trade levels for today call me at (888-264-5665) or Email Pflynn@pricegroup.com. If you want to start trading apply by hitting this link https://newaccount.admis.com/?office=269.

There is a substantial risk of loss in trading futures and options.

Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

Phil is one of the world's leading energy market analysts, providing individual investors, professional traders and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline and energy markets. Phil's market commentary, fundamental and technical analysis, and long-term forecasts are sought by industry executives, investors and media worldwide.

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Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

Contact Phil at 800-935-6487 or pflynn&pricegroup.com.



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December 22nd, 2014

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