Buy Encana (ECA) Says Nenner

In an interview on Breakout, Charles Nenner gave his input on the price movements of oil and natural gas, where he sees the recent roles being reversed as oil continues to drop in price while natural gas has jumped from $1.80 about a month ago to $2.70 now. Nenner was very close to calling that exact, where he saw natural gas dropping to $1.70 before it rebounded.

From the end of April, oil has plummeted over 20 percent, while natural gas has climbed over 30 percent during the same period.

Going forward, Nenner, who tracks momentum and cycles in the two industries, said he doesn't see crude stopping it decline until November, where sees it going to as low as $68 a barrel. It makes one wonder if the Obama administration isn't manipulating the markets, as it is voting time right when oil is supposed to hit that level.

It also makes one wonder why natural gas is soaring, as that will ultimately be a positive for the anemic and sometimes unethical, so-called green energy sector, as it'll make it more competitive with natural gas, which has drawn much of the shine away from those boondoggles surrounding the very expensive alternative energy sources.

For natural gas, he sees it staying weak into the latter part of July before continuing to climb in price. In other words, traders and investors still have an opportunity to get in on natural gas before it continues to climb.

If you're not buying natural gas futures, Nenner recommends Encana Corp. (NYSE: ECA) as his top stock pick in the sector. He recommends waiting until July to get into it.

Nenner doesn't see oil picking back up until November.

Encana closed at $19.40, dropping $0.82, or 4.13 percent.

BP (NYSE:BP) Oil Spill Results in 7-Year Ban on Eastern Gulf

News has leaked that Obama will impose and/or continue a 7-year ban on drilling in the eastern part of the Gulf of Mexico in response to the BP (NYSE:BP) oil spill.

The announcement should officially come from Ken Salazar sometime soon.

This is a continuation of the assault upon drilling for oil of the coast of the United States, and in essence keeping the oil moratorium going, even though it has allegedly been lifted.

The fact that there are no permits being allowed shows the ban is effectively still in place, even though it has "officially" been lifted.

Judge Martin Feldman Throws Out New Government Deepwater Drilling Regulations

U.S. District Judge Martin Feldman is the judge who rejected the first attempt by the Obama administration to impose a moratorium on deepwater drilling in the Gulf of Mexico after the BP (NYSE:BP) oil spill, and he again chastised the administration by throwing out the new regulations accompanying the moratorium, which weren't addressed in the original moratorium case.

Feldman based his ruling on the administration not giving oil and gas companies notice and a chance to make comments on the 10 new rules.

“NTL-05 imposes additional duties on operators and lessees. Notice and comment were required by law. The government did not comply and the NTL-05 is of no lawful force or effect,” said Feldman.

While the second moratorium was recently lifted, the Interior Department rules known as NTL-05 remained in force, that is until the judge threw them out.

On November 3 a lawsuit which challenged the moratorium will be considered for whether or not it will be allowed to go forward. The government has asked for it to be dismissed.

Chevron (NYSE:CVX) Lowers Earnings Guidance on Weak US Dollar, Drilling Moratorium

Chevron Corp. (NYSE:CVX) lowered its earning guidance for the third quarter Tuesday, citing the collapsing U.S. dollar and the deepwater oil moratorium imposed by the Obama administration which drove up the costs for the period. Lower crude prices were also cited as a reason for the lowered guidance.

Together it will slash earnings for the quarter by close to $400 million, said the energy giant.

This isn't a surprise to most people, as Wall Street had already lowered their profit estimates to $2.27, down from the second-quarter earnings of $2.70 a share.

Chevron noted the declining value of the U.S. dollar will hit their International Upstream business the hardest.

U.S. upstream earnings were the most negatively affected by the oil moratorium, resulting in a drop of 16,000 barrels of day in production on average in the country, while costs rose.

Chevron has been lowering their investment in small-margin businesses in order to target exploration to find new gas and oil fields.

The company closed Tuesday at $83.84, gaining $0.13, or 0.16 percent.

Chevron (NYSE:CVX) Completes Deepwater Well, a Month Ago

Chevron (NYSE:CVX) completed drilling the first deepwater well in North America, quietly finishing the well a month ago, which they had started in May.

They got around the foolish oil moratorium of the Obama administration because the well of drilled off the coast of Canada, about 260 miles from Newfoundland.

According to Chevron, the the Lona O-55 well is the deepest well ever drilled in Canadian waters.

Provinces in Canada get royalties from commodity resources, and that's the case with this project as well, as the government rejected the paranoia which emerged from the BP (NYSE:BP) oil spill in America causing emotion-driven overreaction.

Chevron did say through a spokesman that throughout the operations they were extra careful to make sure all safety equipment and measures were working correctly.

The oil giant deliberately went about the drilling quietly to not attract unwarranted attention.

Chevron is 50 percent owner of Lona O-55, Shell has a 20 percent stake, ExxonMobil (NYSE:XOM) has a 15 percent stake, as does Imperial Oil (AMEX:IMO).

The oil well was drilled by Stena, a Swedish-based company.

Another Transocean (NYSE:RIG) Oil Rig Leaving Gulf

The news gets worse in light of the misguided Obama oil moratorium which continues to crush the Gulf region, as over 20,000 workers remain out of work because of the decision, while a fourth rig is now about to leave the region permanently, with Transocean (NYSE:RIG) saying they'll be removing a second rig from the area, while Diamond Offshore Drilling Inc (NYSE:DO) has already removed two.

Diamond and Anadarko (NYSE:APC) are in a battle over a third oil rig, which Anadarko wants to cancel the contract because of the moratorium.

Transocean CEO Steven Newman said concerning Gulf drilling activity, that there will probably be no meaningful continuation until sometime in 2011.

The growing idea is the regulatory atmosphere will probably result in a much less robust Gulf drilling area, and loss of thousands of jobs on a permanent basis.

Hopefully that will change after the mid-term elections.

Growing Outrage over Obama's Oil Moratorium

Other than his radical environmental pals, and his Democrat buddies, very few people or businesses support the overreaction of Obama to impose a six-month moratorium on drilling for oil in over 500 feet of water in the Gulf of Mexico, as businesses serving the industry, as well as the industry itself, get financially crushed from Obama's misguided decision.

A judge lifted the moratorium, saying it was unprecedented in history, with no parameters or guidelines other than completely shutting everything down involved in the decision of Obama.

The arrogant president of the United States doesn't care, and immediately went on the offense against the people and businesses in the Gulf region by appealing the ruling of the federal judge.

A number of people say it could do more damage than the disaster itself to the people of the Gulf.

Shell (LSE:RDSA) Drilling Suspended

Shell Oil (LSE:RDSA) is being told no by the government to drill for oil in the Artic. They were planning to drill five exploratory wells off of the coast of Alaska. The Justice Department defended this action just days ago but it was shut down by The Interior Department.

Shell is pointing out that they would have been drilling in much shallower water than the depth that Deepwater Horizon was drilling. They would only be drilling 150 feet verses the 5,000 feet BP is drilling at. The officials at Shell feel this move is totally political because of the disaster in the Gulf. Obama employed the Geological Survey which is supposed to determine the companies ability to respond, as well as determining the potential impact if they were to were to face the challenges of an oil spill like is currently being experienced.

Leaders of the Center For Biological Diversity are saying that they do not have the technology in the Artic if there were a massive oil spill. Which would be catastrophic for the entire ice environment, among several species including the polar bear.

The Mineral Management Services (MMS) say that there is approximately $27 billion barrels of oil in just the U.S. portion of the Artic. Obama feels the domestic exploration of oil would make the country less dependant on foreign oil as we pursue the transition to a cleaner oil.

Romney on Obama's Mishandling of BP (NYSE:BP) Oil Spill

Obama's inexperience has tragically revealed itself, and the country is paying for it dearly as oil from the BP (NYSE:BP) disaster continues to pour into the Gulf of Mexico, while no one to this day seems to be in charge.

Mitt Romney is the latest to address the mishandling of the crisis by Obama and his administration.

Romney said about Obama's failure, "In this kind of a crisis situation, the president's response should have been to step in, bring in the experts, people from various oil companies, from leading institutions, academic and engineering firms and look at the options for actually capping this oil spill and then actually making those decisions."

Others who have actual management experience have stated similar things. Obama's enlisting of clueless college professors and government scientists has been blasted by many of those viewing the situation as well, saying Obama should have gone out and recruited experienced people who have dealt with similar circumstances.

Obama wouldn't even accept the help of nations with oil skimmers which could have extracted oil from the Gulf almost immediately, because of his catering to unions who would have thrown a fit because he allowed foreign boats in the area which hadn't been built in the country. President Bush trumped the draconian law which was implemented in 1920, and allowed ships in to help with Katrina, which the majority say he did a better job of managing.

BP (NYSE:BP) UPDATE: Legal Claim Process, Compensation Claims

BP (NYSE:BP) and President Obama reached an agreement on they will handle the company's compensation claim and claim process. A $20 billion fund will be set up to compensate the victims of the oil spill.

After a four hour meeting with BP officials, Obama made the announcement of the agreement. BP has also said they will set up an additional $100 million fund which sole purpose would be to be used to compensate oil rig workers that will lose six months pay due being laid off because of Obama's moratorium on deepwater drilling.

"The structure we are establishing today is an important step toward making the people of the Gulf coast whole again, but it will not turn things around overnight. This is about accountability. At the end of the day that's what every American wants and expects. The people of the Gulf have my commitment that BP will meet its obligations to them. This $20 billion amount will provide substantial assurance that the claims people and businesses have will be honored," said Obama. He ensured that the $20 million is not a cap on BP's liabilities and will pay more if needed

The claim process fund will be run by Kenneth Feinberg, who was in charge on the September 11th compensation claims process and overseeing payments to families of victims. There will be a three member panel who will be in charge of the claims that are turned down. This setup helps setup a formal process instead of vague promises by BP.

BP (NYSE:BP) Buys Google Ad Words, "Oil Spill"

BP (NYSE:BP) bought the Google ad words "oil spill" with the tag line "how BP is helping." This will link search results from Google and Yahoo directly to BP's website. A spokesman for BP, said the reasoning behind this purchase was to help people by making it a little easier to find out and follow the on going fuel spill containment efforts. There also will be links on the website that will help direct people to the correct places to file a legal claim, sign up to volunteer, and to report oil found on the beach.

BP has spent several millions of dollars, $50 million to be exact, on television advertising. President Obama has criticized BP for doing this, especially when they have given fisherman who have lost their livelihood only $5,000. Not to mention how it seems they are attempting to limit the amounts they'll pay to those people that have been directly effected by the devastating results of the hazardous spill disaster.

Televised apology ads or not, its not changing the views of most people, 20 percent say they will no longer purchase BP gas while 31 percent will buy less gas from the oil company. While 47 percent of people feel BP's public relation efforts are too little to late, there are 41 percent who believe that BP is doing absolutely everything they can, leaving 42 percent who feel they are only doing what is necessary for public relations sake. The bottom line, 71 percent of people feel BP is responsible for the oil spill.

Obama Attacks BP (NYSE:BP) CEO to Deflect Blame

Obama has come under increasing scrutiny in disfavor over his handling of the oil crisis, and now is using the lame tactic of deflecting blame by attacking BP (NYSE:BP) CEO Tony Hayward because he had a couple of times misspoke, or at least gave the perception of misspeaking over the crisis.

The latest tirade of Obama is that he would have fired Hayward over the comments he made over the Gulf oil spill.

This is an incredibly stupid comment that smells and hints of desperation by Obama, who looks inept and unable to govern, and his campaign rhetoric increasingly looking shallow and without content.

With Obama plunging in popularity and seemingly unable to manage, while riding roughshod over the will of the American people, this is one of the few plays left for him, as he looks anemic and exposed under the media light that has finally focused on him and his capabilities, which are highly lacking and showing the extreme lack of management and governing experience.

The backward move to try to resurrect a couple of statements made by Hayward, which weren't really that big of a deal in the first place, unveils Obama's desperation and understanding of what this is costing him.

The mask if finally off the emperor and a growing number of people are starting to dislike what they're seeing.

Halliburton's (NYSE:HAL) Stock Rises Today

Since April 20th, it's been a see-saw effect for Halliburton's (NYSE:HAL) shares. After seeing them plummet 14.8 percent at the close of the New York Stock Exchange yesterday at 4:00 PM, it left many investors doubting any turn around would happen.

Although this wasn't necessarily a surprise, this was the foreseen doom that would effect all oil stock prices if BP was unsuccessful at stopping the oil with their "top kill" fuel containment effort. Halliburton's role was the cementing of the well, among other things to do with the development of the blown out well.

On Wednesday, Halliburton's stock rises, increasing more than 12 percent. It's believed its due mainly to the story from the Dow Jones which reported that Halliburton believes that it will be fully indemnified from all expenses and claims resulting from the April 20th oil spill. Executives said they are confident that they will be exempt from any claims as a result of the spill. They say they have $600 million in general liability insurance.

This may be wishful thinking on Halliburton's part. Transocean is also trying to cap their liability. The Obama administration is challenging Transocean's attempts.

MMS Steps Down, BP (NYSE:BP) Oil Spill Worst In History

It is official, BP (NYSE:BP) is the worst oil spill in U.S. History, this is by the governments task force findings of new estimates of the oil flow. The estimation by the task force is three times more than what was being estimated.

This estimation was given by the scientific team of President Obama who were given the job to determine the accurate amount of oil flowing from the Gulf oil spill. Their original estimate was between 12,000 and 19,000 barrels being lost of oil daily. This is much higher than what the U.S. Coast Guard and BP kept insisting on, 5,000 gallons a day being lost.

The new estimate is no comparison to what was originally estimated. The new oil spill estimate is up to 798,000 gallons daily.

The most conservative estimate, since the April 20th fuel oil spill disaster would be a total of close to 17 million gallons deposited into the ocean. The high end of the estimate, would equal to a total of 29.5 million gallons.

This surpasses the Exxon Valdez Disaster which spilled a total of 11 million gallons of oil.

Obama Bans Drilling Of Offshore Oil Wells, Huge Blow To Shell (LSE:RDSA)

An aide of President Obama, under anonymity said, Obama is going to announce that he will not let Shell Oil Company (LSE:RDSA) continue exploratory drilling off the coast of Alaska. At least until the commission, in charge of "how to prevent this from ever happening again," is able to do a full review. This is just one of the topics Obama will cover at his press conference this afternoon.

The President is also going to announce that intends to extend an existing memorandum for six months on any new drilling. He will also cancel lease sales planned for August off the Coast of Virginia as well as off the Coast of Alaska. The sale in Virginia was highly supported by state officials, until environmental groups as well as the large military population did not share the same opinion.

These announcements from the president are expected to be meet with some resistance. Like from the energy industry officials who feel like the effects of the Deepwater Horizon incident should not prompt a nationwide ban on offshore oil and gas drilling.

Shell officials have stated that they should not have the same restrictions because their plans were to drill in shallower water unlike BP.

Sarah Palin, BP (NYSE:BP) and Obama

Growing concern over Barack Obama and his connection to big oil is emerging, as BP (NYSE:BP) has given Obama the largest single donation in two decades to Obama, $77,051, according to the Center for Responsive Politics.

Sarah Palin has openly started asking why there isn't as much scrutiny over the slow response of the Obama administration to the Gulf of Mexico oil spill as there was over the alleged slow response of the Bush administration to Katrina.

Palin likens Obama's lack of response in the beginning to the Katrina situation, citing Obama's ties to big oil as the reason behind it.

"I don't know why the question isn't asked by the mainstream media and by others if there's any connection with the contributions made to president Obama and his administration and the support by the oil companies to the administration," said Palin.

Others have questioned Obama's slow response as well as possibly being related to his strong connections to the oil industry, which he is now trying to distance himself from.

BP's (NYSE:BP) Oil Leak Control Efforts Have Declined

Despite the continued efforts of BP (NYSE:BP) to contain the massive oil leak, it is not working as well as before. BP's PLC officials stated Sunday that the mile long tube that was inserted into the spewing oil, is not as effective.

John Curry, BP's spokesman told the Associated Press Sunday that there has been a substantial drop in the amount the tube is siphoning to the surface. As of Friday there was a reported 92,400 gallons a day being collected. On Sunday there was a big drop, down to 57,120 gallons a day.

Three of Obama's top administration officials are heading back to the Gulf Coast to monitor the ongoing oil spill cleanup efforts.

Meanwhile, engineers continue on in their efforts to try and get some control over the oil disaster. This is as the crude oil continues to wash into our shores, wildlife is at a continued high danger, and anger with BP and the government continues to grow.