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.
Showing posts with label oil. Show all posts
Showing posts with label oil. Show all posts
Monday, June 25, 2012
Monday, August 23, 2010
BP (NYSE:BP) Has Begun Removing Drill Pipe
BP (NYSE:BP) has begun the process of removing the 3,500 feet of drilling pipe from the Gulf of Mexico. This could not start until the completion of an ambient pressure test. The test assured that no oil or gas would escape if the blowout preventer and sealing cap are removed from the top of the well.
Thad Allen, retired U.S. Coast Guard Admiral, told BP that they had to put together a plan to get out the blowout preventer. They had until Sunday to turn over the plans to the U.S. government. The question remains, how they will successfully remove the pipe while managing to keep the cap and blowout preventer in place and preventing damage.
U.S. officials said that it is necessary to replace the blowout preventer prior to the final "bottom kill" attempt because there are concerns that the sealing cap could come loose. If the cement and mud mixture is forced into the bottom of the well prematurely, it ultimately could blow the cap off all together and the trapped oil would leak into the Gulf.
Thad Allen, retired U.S. Coast Guard Admiral, told BP that they had to put together a plan to get out the blowout preventer. They had until Sunday to turn over the plans to the U.S. government. The question remains, how they will successfully remove the pipe while managing to keep the cap and blowout preventer in place and preventing damage.
U.S. officials said that it is necessary to replace the blowout preventer prior to the final "bottom kill" attempt because there are concerns that the sealing cap could come loose. If the cement and mud mixture is forced into the bottom of the well prematurely, it ultimately could blow the cap off all together and the trapped oil would leak into the Gulf.
Monday, August 9, 2010
BP (NYSE:BP) Cement Hardens, on to "Bottom Kill"
BP (NYSE:BP) said that the sealing cement has hardened. Work crews are now preparing for the final stage of drilling a relief well, called "bottom kill." After oil was spewing into the ocean for 84 days.
The pressure tests that were done on the cement plug that was forced down the throat of the well, have shown the seal is securely in place. Which means, BP can start drilling on the last 100 feet to permanently seal the damaged well. The crews must drill very carefully and very slowly, only progressing at a rate of about 30 feet at a time.
The company is expecting to not be completed until next weekend. They will use the same process of drilling cement and mud, this time into the bottom of the well. At that time, they are confident the two relief wells will meet, thus completing the process and "killing" the well.
The pressure tests that were done on the cement plug that was forced down the throat of the well, have shown the seal is securely in place. Which means, BP can start drilling on the last 100 feet to permanently seal the damaged well. The crews must drill very carefully and very slowly, only progressing at a rate of about 30 feet at a time.
The company is expecting to not be completed until next weekend. They will use the same process of drilling cement and mud, this time into the bottom of the well. At that time, they are confident the two relief wells will meet, thus completing the process and "killing" the well.
Tuesday, July 27, 2010
BP (NYSE:BP): Hayward's Not Testifying, PERIOD !
According to BP (NYSE:BP), Chief Executive Tony Hayward will not be testifying at the U.S. Senate hearing. The purpose of this hearing is to examine the evidence to see if BP had any influence in the release of the Lockerbie bomber.
BP did say they were willing to send another representative to testify at the Senate Foreign Relations Committee hearing, chaired by Senator Robert Menendez on Thursday. Although the name of the representative was not given. Menendez said he is going to continue to put the pressure on to have Hayward testify.
"It is apparently more important to BP and Mr. Hayward to focus on his multi-million dollar golden parachute then to help answer serious lingering questions about whether the company advocated traded blood for oil," said Menendez.
Menendez continued, "Though it may be convenient for BP to move Mr. Hayward out of his position, it does not change the need for answers. The bottom line is we need to hear from BP officials at the highest levels who had significant contact with both the Libyan and British governments. Mr. Hayward best fits that bill."
BP did say they were willing to send another representative to testify at the Senate Foreign Relations Committee hearing, chaired by Senator Robert Menendez on Thursday. Although the name of the representative was not given. Menendez said he is going to continue to put the pressure on to have Hayward testify.
"It is apparently more important to BP and Mr. Hayward to focus on his multi-million dollar golden parachute then to help answer serious lingering questions about whether the company advocated traded blood for oil," said Menendez.
Menendez continued, "Though it may be convenient for BP to move Mr. Hayward out of his position, it does not change the need for answers. The bottom line is we need to hear from BP officials at the highest levels who had significant contact with both the Libyan and British governments. Mr. Hayward best fits that bill."
Where or Where Has The BP (NYSE:BP) Oil Gone ?
Over 200 million gallons of BP's (NYSE:BP) toxic crude oil was spewed into the ocean. The federal government and BP has sent a small army to clean it up, but the problem is they can't find it.
The oil slick mass is now the size of New Hampshire but started out the size of Kansas. The Coast Guard flew around the BP rig site and no oil could be found. An ABC News team surveyed a marsh area and the oil eluded them as well.
A shrimper, Salvador Cepriano is one of many searching for the oil. He said hes been putting out boom but it's not catching any oil. "I think it is underneath the water. It's in between the bottom and the top of the water," said Cepriano.
The government is says it's getting harder and harder to find the crude. Thad Allen, National Incident Commander said, "It is become a very elusive bunch of oil for us to find." This doesn't mean that all the oil is gone, but experts are saying that a massive amount has reabsorbed into the environment.
The oil slick mass is now the size of New Hampshire but started out the size of Kansas. The Coast Guard flew around the BP rig site and no oil could be found. An ABC News team surveyed a marsh area and the oil eluded them as well.
A shrimper, Salvador Cepriano is one of many searching for the oil. He said hes been putting out boom but it's not catching any oil. "I think it is underneath the water. It's in between the bottom and the top of the water," said Cepriano.
The government is says it's getting harder and harder to find the crude. Thad Allen, National Incident Commander said, "It is become a very elusive bunch of oil for us to find." This doesn't mean that all the oil is gone, but experts are saying that a massive amount has reabsorbed into the environment.
Monday, July 19, 2010
Plumber Says His Design Stopped BP's (NYSE:BP) Oil Leak
A mystery plumber has emerged claiming that it was his design that BP (NYSE:BP) used to successfully stop the oil leak. His name is Joe Caldart, he's married has 5 children and is in his 40's.
When asked about why he choose to go public he said, "My wife was like, this is kind of scary, I don't know if you should go public." I said, "Yeah and no, but I also felt that people should know that here an average guy submitted something that maybe helped."
He said he drew three sketches on May 25th and sent them to BP and the Coastguard. They're almost an exact match to the cap that was lowered over the leaking Macondo well last week. BP's response was they weren't working on stopping the leak just containing the oil.
"The idea was using the top flange on the blowout preventer as an attachment point and then employing an internal seal against the flange surface," said Robert Bea, a Coastguard. "You can kind of see how a plumber thinks this way. That's how they have to plumb homes for sewage."
When asked about why he choose to go public he said, "My wife was like, this is kind of scary, I don't know if you should go public." I said, "Yeah and no, but I also felt that people should know that here an average guy submitted something that maybe helped."
He said he drew three sketches on May 25th and sent them to BP and the Coastguard. They're almost an exact match to the cap that was lowered over the leaking Macondo well last week. BP's response was they weren't working on stopping the leak just containing the oil.
"The idea was using the top flange on the blowout preventer as an attachment point and then employing an internal seal against the flange surface," said Robert Bea, a Coastguard. "You can kind of see how a plumber thinks this way. That's how they have to plumb homes for sewage."
BP (NYSE:BP) Kills Whale Skimmer With Dispersants
There has been much controversy surrounding BP's (NYSE:BP) use of the toxic dispersant Corexit, it's proving to kill off more than just marine life. The U.S. coastguard has deemed the Taiwanese skimmer called "A Whale" ineffective.
Due to the massive amounts of dispersants distributed into the Gulf, it broke up the oil resulting in "A Whale" not being able to properly skim the water for oil. There was a lot of optimistic hope that it would greatly assist in the removal of the toxic crude. During its testing it only removed minuscule amounts of oil.
Bob Grantham, TMT offshore spokesman said, "This ship demonstrated that it can bring substantial volumes of capacity to bear in addressing oil spills quickly and with great maneuverability. That said, the particular conditions present in the Macondo spill did not afford the vessel to recover a significant amount of oil. Due to the highly dispersed nature of oil in the Gulf."
Due to the massive amounts of dispersants distributed into the Gulf, it broke up the oil resulting in "A Whale" not being able to properly skim the water for oil. There was a lot of optimistic hope that it would greatly assist in the removal of the toxic crude. During its testing it only removed minuscule amounts of oil.
Bob Grantham, TMT offshore spokesman said, "This ship demonstrated that it can bring substantial volumes of capacity to bear in addressing oil spills quickly and with great maneuverability. That said, the particular conditions present in the Macondo spill did not afford the vessel to recover a significant amount of oil. Due to the highly dispersed nature of oil in the Gulf."
BP (NYSE:BP): Re-opening Spill Containment Cap and Hiding Data
BP (NYSE:BP) is hiding the data from their testing and reopening the spill containment cap. The cap has to be re-opened for up to 3 days said Doug Suttles. Saying that pressure must be taken off the well before BP can continue their containment efforts.
Doug Suttles took the place of Kent Wells at the McBriefing, after giving very little information he then refused to answer any questions. The only information that was given was about the pressure of the well, even that didn't make a whole lot of since. He said since the well was closed 63 hours prior, the pressure was up to 6,778 and was building as they thought it would.
What's odd about this is on Tuesday Thad Allen stated, "We will at some point try to get to 8,000 or 9,000 and sustain that for some period of time, and these will be done basically as I said. If we have a very low pressure reading, we will try and need at least six hours of those readings to try to ensure that that is the reading. If it's a little higher, we want to go for 24 hrs. If it's up at 8,000 or 9,000, we would like to go 48 hrs. just to make sure it can sustain those pressures for that amount of time."
Suttles continued to dodge questioning Sunday afternoon as to what BP plans to do next. He did say, "Nobody wants to see anymore oil going into the Gulf," a minimum of 5 times. He continued saying, the facilities to take all the oil flow wouldn't be completed until the end of July. In order to relieve the well of pressure, he said they would have to remove the containment cap and let oil flow out for 3 days.
Doug Suttles took the place of Kent Wells at the McBriefing, after giving very little information he then refused to answer any questions. The only information that was given was about the pressure of the well, even that didn't make a whole lot of since. He said since the well was closed 63 hours prior, the pressure was up to 6,778 and was building as they thought it would.
What's odd about this is on Tuesday Thad Allen stated, "We will at some point try to get to 8,000 or 9,000 and sustain that for some period of time, and these will be done basically as I said. If we have a very low pressure reading, we will try and need at least six hours of those readings to try to ensure that that is the reading. If it's a little higher, we want to go for 24 hrs. If it's up at 8,000 or 9,000, we would like to go 48 hrs. just to make sure it can sustain those pressures for that amount of time."
Suttles continued to dodge questioning Sunday afternoon as to what BP plans to do next. He did say, "Nobody wants to see anymore oil going into the Gulf," a minimum of 5 times. He continued saying, the facilities to take all the oil flow wouldn't be completed until the end of July. In order to relieve the well of pressure, he said they would have to remove the containment cap and let oil flow out for 3 days.
Monday, July 12, 2010
BP (NYSE:BP) Update: Secondary Containment Cap: Removing and Replacing
BP (NYSE:BP) started the process on Saturday, of removing the containment cap from the well. Their plan is to replace it with one that is a tighter fit which will funnel more oil to the ships on the surface. This is very delicate work and there are several robotic submersibles surrounding the well.
Senior Vice President of BP, Kent Wells said, "Over the next four to seven days, depending on how things go, we should get that sealing cap on. That's our plan." If everything goes as planned, all of the oil could be being collected as soon as Monday. It is only another temporary solution until the relief wells are completed, but if successful it would cut the oil that is leaking into the Gulf way down.
The process involves engineers removing a bolted flange below the dome. The flange has to be removed so another piece called the flange spool can be put over the pipe where the sealing cap will be connected. The flange was successfully removed Saturday. BP officials said they are behind schedule for the placement of the sealing cap but are still optimistic.
"Everything done at that site is very much harder than anyone expects, is replacing the cap going to do more damage than leaving it in place, or are you going to cause problems that you can't take care of," said Ed Overton, a Louisiana State University environmental sciences professor.
Senior Vice President of BP, Kent Wells said, "Over the next four to seven days, depending on how things go, we should get that sealing cap on. That's our plan." If everything goes as planned, all of the oil could be being collected as soon as Monday. It is only another temporary solution until the relief wells are completed, but if successful it would cut the oil that is leaking into the Gulf way down.
The process involves engineers removing a bolted flange below the dome. The flange has to be removed so another piece called the flange spool can be put over the pipe where the sealing cap will be connected. The flange was successfully removed Saturday. BP officials said they are behind schedule for the placement of the sealing cap but are still optimistic.
"Everything done at that site is very much harder than anyone expects, is replacing the cap going to do more damage than leaving it in place, or are you going to cause problems that you can't take care of," said Ed Overton, a Louisiana State University environmental sciences professor.
Friday, July 2, 2010
Exxon (NYSE:XOM) and ConocoPhillips (NYSE:COP) Stock Trading, Yearly Lows and Maintained Uptrends
The largest and best managed oil company, Exxon Mobile (NYSE:XOM) is currently trading at a yearly low and has seen a 20 percent decline compared to this time last year. Other big oil giants like Chevron, PetroChina, and Statoil have discovered billions of barrels of oil over the last 2-3 years.
Even though they're shares are going mostly sideways, they've also seen a decline of 16 percent over the last year. Gene McGillian, broker and analyst at Trading Energy in Stanford said, "The fundamentals of the market remain negative. If we don't get some positive economic news we will soon test $70."
There is one oil company ConocoPhillips (NYSE:COP) that has maintained an uptrend which is quite impressive despite the broad market being down since May. Billionaire investor Warren Buffet is a big shareholder of ConocoPhillips and recommends them.
Even though they're shares are going mostly sideways, they've also seen a decline of 16 percent over the last year. Gene McGillian, broker and analyst at Trading Energy in Stanford said, "The fundamentals of the market remain negative. If we don't get some positive economic news we will soon test $70."
There is one oil company ConocoPhillips (NYSE:COP) that has maintained an uptrend which is quite impressive despite the broad market being down since May. Billionaire investor Warren Buffet is a big shareholder of ConocoPhillips and recommends them.
Thursday, July 1, 2010
BP (NYSE:BP) Civil Lawsuit, Plaintiff Wildlife Activists
It seems among the many civil lawsuits and class action lawsuits, BP (NYSE:BP) is facing yet another one, the plaintiff being wildlife activists. The plaintiffs are saying that endangered turtles are intentionally being put at risk by BP because they are getting trapped in the booms used for the collection of oil. Then the turtles are being burned by the controlled burns that BP is using to eliminate oil from the spill.
William Eubanks and Jason Burge, lawyers for the environmentalist have requested a restraining order against BP for any further activities in the Gulf that will threaten or put the endangered turtles further into harms way. The papers were filed in a New Orleans Federal Court yesterday. A simple solution would be for BP to check the corrals for the turtles before the oil is ignited, said the environmentalist. They are also claiming that the killing of these endangered turtles is viewed as an "illegal taking" of an endangered species under the environmental laws.
" BP has already killed or otherwise harmed" hundreds of the Kemp's Ridley, Loggerhead, and Leatherback's, among many other species of endangered turtles. BP is the only defendant named in the lawsuit. Tony Odone, BP's spokesman said they had no comment on pending litigation.
William Eubanks and Jason Burge, lawyers for the environmentalist have requested a restraining order against BP for any further activities in the Gulf that will threaten or put the endangered turtles further into harms way. The papers were filed in a New Orleans Federal Court yesterday. A simple solution would be for BP to check the corrals for the turtles before the oil is ignited, said the environmentalist. They are also claiming that the killing of these endangered turtles is viewed as an "illegal taking" of an endangered species under the environmental laws.
" BP has already killed or otherwise harmed" hundreds of the Kemp's Ridley, Loggerhead, and Leatherback's, among many other species of endangered turtles. BP is the only defendant named in the lawsuit. Tony Odone, BP's spokesman said they had no comment on pending litigation.
Thursday, June 17, 2010
BP (NYSE:BP) Oil Spill Cleanup, Wildlife Effects Worsen
It's a sad scene as BP (NYSE:BP) continues their attempt on the oil spill cleanup, wildlife habitats continue to be destroyed and they are moving to shallow waters. Off of the Alabama pier there is a vast and massive variety of animals showing up on shore such as sting rays, crabs, mullets, and small fish trying to find refuge from the oil polluted waters. Off the coast of Florida sharks and dolphins are making their appearance in shallow waters.
This might seem positive but it is not. For these animals to leave their natural habitats and be showing up in extremely shallow waters is an indication that they are fleeing from the oil that has most likely destroyed their homes. Not to mention the fact that with such a dense amount of animals in such small areas, oxygen will run out causing mass die-offs. They are also easy targets for prey.
Larry Crowder, a Duke University marine biologist said, "A parallel would be: Why are the wildlife running to the edge of a forest fire ? There will be a lot of fish, sharks, and turtles trying to get out of this water they detect is unsuitable."
Scientist are daily going out to inspect and collect the hurt and dead animals. They say the numbers are relatively small considering the massive amount of oil that has been deposited into the ocean. Although they fear most fatalities will never fully be accounted for because most animals that can't make it to the shallow waters will die and end up on the bottom of the ocean. The most recent figures of fatalities are: birds 783, turtles 353, and 41 mammals.
This might seem positive but it is not. For these animals to leave their natural habitats and be showing up in extremely shallow waters is an indication that they are fleeing from the oil that has most likely destroyed their homes. Not to mention the fact that with such a dense amount of animals in such small areas, oxygen will run out causing mass die-offs. They are also easy targets for prey.
Larry Crowder, a Duke University marine biologist said, "A parallel would be: Why are the wildlife running to the edge of a forest fire ? There will be a lot of fish, sharks, and turtles trying to get out of this water they detect is unsuitable."
Scientist are daily going out to inspect and collect the hurt and dead animals. They say the numbers are relatively small considering the massive amount of oil that has been deposited into the ocean. Although they fear most fatalities will never fully be accounted for because most animals that can't make it to the shallow waters will die and end up on the bottom of the ocean. The most recent figures of fatalities are: birds 783, turtles 353, and 41 mammals.
Monday, May 31, 2010
Chevron (NYSE:CVX) and Conoco Phillips (NYSE:COP) Sign Deal Binding Them For 12 yrs.
There are two deals that have been agreed to by Chevron (NYSE:CVX) and Conoco Phillips (NYSE:COP) , according to Indonesia's energy watchdog BPMIGAS. Chevron is Indonesia's largest oil producer and the final deal entails Chevron purchasing their natural gas from Conoco Phillips.
One of the deals was an amendment to a previous deal, which was meet with resistance by politicians because it was said to be unfair due to the current hike in the prices of oil. The gas supply will come from Conoco Phillips fields in South Sumatra.
The terms are for a four year time period, where Conoco Phillips will be supplying 77.9 trillion British thermal units total. As well as an additional 12 year agreement for 1,177 trillion British thermal units.
This deal will replace a prior deal which entailed swapping crude oil for natural gas among the two companies. Chevron is currently producing 370,000 barrels of crude oil daily from Sumatra.
As production has decreased due to not being able to tap new fields quickly enough, Indonesia has become a net importer of crude oil in recent years.
One of the deals was an amendment to a previous deal, which was meet with resistance by politicians because it was said to be unfair due to the current hike in the prices of oil. The gas supply will come from Conoco Phillips fields in South Sumatra.
The terms are for a four year time period, where Conoco Phillips will be supplying 77.9 trillion British thermal units total. As well as an additional 12 year agreement for 1,177 trillion British thermal units.
This deal will replace a prior deal which entailed swapping crude oil for natural gas among the two companies. Chevron is currently producing 370,000 barrels of crude oil daily from Sumatra.
As production has decreased due to not being able to tap new fields quickly enough, Indonesia has become a net importer of crude oil in recent years.
Tuesday, May 25, 2010
BP (NYSE:BP) Ready For "Top Kill" Attempt
BP's (NYSE:BP) has moved equipment in and is ready for its "top kill" attempt on Wednesday. This has never been attempted before at these depths of 5,000 feet below the surface. BP is estimating the success rate being only about a 60 - 70 percent.
If the attempt is a failure, BP has a couple other options they could implement. The first being they would try and cut the damaged riser pipe on the top of the blowout preventer, they would then attach a cap to the riser from the above drillship. The company said if successful this would capture most of the oil.
Another option is to lower a second blowout preventer or a valve. We're heading into the sixth week now since the explosion of the Deepwater Horizon on April 20th and the sinking April 22nd.
If the attempt is a failure, BP has a couple other options they could implement. The first being they would try and cut the damaged riser pipe on the top of the blowout preventer, they would then attach a cap to the riser from the above drillship. The company said if successful this would capture most of the oil.
Another option is to lower a second blowout preventer or a valve. We're heading into the sixth week now since the explosion of the Deepwater Horizon on April 20th and the sinking April 22nd.
Sunday, May 23, 2010
Scientist's Saying BP's (NYSE:BP) Losing 850,000 Gallons Daily
As the debate continues, independent scientists are estimating that BP (NYSE:BP) is losing at a minimum, 850,000 gallons a day. There are many scientist that are in agreement that BP and Obama's administration continue to downplay the actual amount of oil that is spewing at a massive rate.
"This is an all hands on deck crisis, and we need to use every asset the U.S. has, including the defense department and all of its most sophisticated technology," said Rep. Ed Markey.
There has been many members of Congress, local officials, as well as environmental organizations in the effected states, that are pushing for the federal government to take over the oil response efforts.
Sen. Lamar Alexander, on CBS's Face the Nation, seemed to advocate the government simply taking over BP as a whole.
"This is an all hands on deck crisis, and we need to use every asset the U.S. has, including the defense department and all of its most sophisticated technology," said Rep. Ed Markey.
There has been many members of Congress, local officials, as well as environmental organizations in the effected states, that are pushing for the federal government to take over the oil response efforts.
Sen. Lamar Alexander, on CBS's Face the Nation, seemed to advocate the government simply taking over BP as a whole.
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