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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..
Plain Talk On Oil Production
Last Wednesday Plains All American (PAGP) held their Investor Day. These events typically afford investors the opportunity to get more detail on the company, but Plains also has a sophisticated macro view of the oil market. As the biggest crude oil transportation company in America they naturally care a lot about North American output. CEO […]
U.S. Oil Output Approaches Record
With the resurgence in U.S. crude oil production over the last year, it was only a matter of time until shale output reached a new record. Based on recent actual production and the EIA’s forecast for a June increase of 122 MB/D (thousand barrels a day), the peak of March 2015 is only 57 MB/D […]
Extracting Supply Forecasts from Oil Futures
We thought it would be interesting to expand a little more on the notion that crude oil prices reflect the market’s confidence that oil in the future will be available on approximately the same terms as today (see Oil Futures Say Shale’s Here to Stay). The tool we’re using is the two year spread – […]
Buffett’s Hedge Fund Bet
We alluded to this in May’s newsletter. About to lose a $1MM bet with Warren Buffett over whether hedge funds could beat stocks over ten years, hedge fund investor Ted Seides has brazenly shunned obscurity and instead offered an amusing public justification. It can be summarized thus: although I lost money I wasn’t wrong. I’ll […]
Oil Futures Say Shale's Here to Stay
A couple of months ago (see Why Shale Upends Conventional Thinking) I promised to spread constructive thoughts about Master Limited Partnerships (MLPs) across the ensuing weeks and months rather than use them all up on the first drop in prices. Two months and several percent later such parsimony was well advised. If your preference is […]