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..
Financial Discipline Among MLP Customers
Recent earnings reports suggest some moderation in the acceleration of U.S. shale drilling. The CEO of Schlumberger said that equity investors were propagating marginal activity by providing capital based on volumes rather than returns. The retiring Chairman of Halliburton, Dave Lesar, provided some wonderful quotes on his final investor call, including this assessment of the […]
What Kinder Morgan Tells Us About MLPs
Kinder Morgan (KMI) reported earnings last week, including a long expected dividend hike and a pleasantly surprising stock buyback. In many ways the stock performance and corporate finance moves of KMI reflect the Master Limited Partnership (MLP) sector as a whole. Pre-Shale Revolution, Kinder Morgan Partners (KMP) had rewarded investors with steady distribution growth and […]
Oil Forecasters Have to Work Harder
Those in the oil industry who take a long view increasingly worry about insufficient new supply. It’s hardly today’s problem, with crude oil back to the mid $40s as OPEC’s production cuts are offset by increased shale output. But depletion of existing fields is generally believed to take 3-4 Million Barrels a day (MMB/D) off […]
In the Sweet Spot of Economics and Public Policy
The shift from natural gas importer to exporter has occurred in the U.S. over a remarkably short period of time. We’ve periodically written about this (see U.S. Natural Gas Exports Taking Off and The Global Trade in Natural Gas). Only a few years ago Cheniere Energy (LNG) was investing in facilities to import Liquified Natural […]
Falling Dominoes
“Rusty” Braziel runs RBN Energy, a firm that provides very useful research on production trends in U.S. hydrocarbons. Their website maintains a regular blog and also offers deeper analysis on specific topics. They reach over 20,000 industry executives, and we find many useful insights in their work. The Domino Effect: How the Shale Revolution is […]