EUROPE’S ENERGY CRISIS IS KEEPING ENERGY PRICES AND INFLATION HIGH
America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors..
A Futurist's Vision of Energy
Recently a client drew our attention to a presentation by Stanford University Futurist Tony Seba. He has made a splash with his predictions of imminent, dramatic changes in the transportation industry. In less than a generation he expects a world of self-driving (i.e. autonomous), electric vehicles (EVs) supported by a heavily solar/wind-powered electric grid. In […]
Energy Sector Gathers Momentum
Last week I was chatting with an investor about the attractive valuations in the MLP sector. 2Q17 earnings were generally in-line, with the notable exception of Plains All American (see MLPs Learn About Logistics). Valuations are compelling, with the yield on the Alerian Index currently sitting at 5.5% above the ten year U.S. treasury, 2% […]
Crude and MLPs March Higher Together
For the first half of the year crude oil prices moved irregularly lower before bottoming in June, since when they’ve moved smartly higher. Master Limited Partnerships (MLPs) have roughly followed this path, and have also moved smartly higher in recent weeks. Non-crude cashflows drive MLP operating performance, but crude drives investor sentiment. No amount of […]
Litigating Away From a Cleaner Future
Earlier this month I visited a good friend and client in London where he invited me to address some Summer interns about what we do. In the first moments I was asked if I’d considered the moral aspects of enabling fossil fuel use. Recently armed by Alex Epstein (see The Moral Case for Fossil Fuels), […]
The Oil and Water Business
It’s seldom appreciated outside the energy industry, but drilling for oil, natural gas and natural gas liquids (NGLs) involves handling far more water than hydrocarbons. This isn’t just because production often involves pumping water into a well. Water is usually present naturally, and comes up with the oil and gas that is produced. Ideally in […]