EUROPE’S ENERGY CRISIS IS KEEPING ENERGY PRICES HIGH
America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors.
Same Data, Different Conclusion
We’re not the first MLP investors to be puzzled by sector weakness in the face of growing oil and gas production. This was visible most clearly on Wednesday, when a sharp drop in crude following inventory numbers caused similar drops in many MLPs. Crude prices are weak precisely because of the success of technology in lowering […]
The 2017 MLPA Conference
Last week was the annual MLPA conference, in Orlando, Florida. It’s safe to say the guests at nearby Walt Disney World had a more carefree time than beleaguered MLP investors. One long-time attendee described the mood as “glum”, noting that energy sector investors had expected a more vigorous rebound. Although the conference is organized around […]
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 – […]