Category — Energy
In Texas these days, there’s a feeling of absolute and unwavering confidence in the concept of an US energy revolution. From the depths of reserves to the richness of the energy, an incredible transformation is taking place.
We’ve been talking about the significant impact of the US’s oil production for a while now, but the buzz about shale oil and gas is only getting louder. At Morgan Stanley’s energy forum in Houston in August, Director of Research John Derrick and Portfolio Manager Evan Smith said shale was the prevailing topic.
One area that’s driving this game-changing trend is located only hours from our headquarters. It’s the Permian Basin located in western Texas and southeastern New Mexico, covering an enormous area.
Three component parts make up the Permian: the western Delaware, Central Basin and eastern Midland. If you overlay the Eagle Ford and Bakken basin areas over the Permian, you can see that both the Bakken and the Eagle Ford shale formations easily fit inside.
The area isn’t new to the oil industry, as companies have been drilling in the Permian area for almost a century. Back in the 1970s, oil production reached 2 million barrels per day, but fell to 800,000 barrels per day in 2007. [Read more →]
September 11, 2013 Comments Off
A Meeting of the Minds On Steroids
Next week at the 02 Arena in London the world’s biggest electronic entertainment event will take place. As the organisers say, ‘Campus Party unites the brightest young minds in technology and science under the idea that “the Internet is not a network of computers, it’s a network of people.”‘
It’s a huge event for the whole week, running 24 hours a day. There will be keynotes from some of the brightest minds in global technology. Previous keynote speakers include Steve Wozniak, Michio Kaku and Al Gore. This year Professor Alex ‘Sandy’ Pentland will be a keynote along with one of the men who worked on the ARPANET project, Vint Cerf.
There will also be a mix of technologists, futurists, developers and hackers. The technologies on display and being discussed will include security, big data, robotics, e-health and green tech.
Basically this is a nerd’s dream come true. And that means we’ll be there first hand to find the bestbreakthrough technologies and views on what the future might hold.
What you also need to recognise is events like this are crucial for the development of technology in the world. Because when you get so many minds together in one space, you can’t help but collaborate with each other. It’s a ‘meeting of the minds’…on steroids (not literally).
And when that kind of collaboration happens, breakthroughs occur, new ventures are formed, and problems are solved.
If we come across truly revolutionary tech we’ll reveal everything to Revolutionary Tech Investorsubscribers. But we’ll also share a few pics and snippets of information next weekend. Hopefully it will give you some insight as to just how important events like this are. [Read more →]
September 1, 2013 Comments Off
Australia is set to become the world’s largest liquefied natural gas exporter. We have a remarkable network of pipeline infrastructure running up and down our east and west coast with tens of thousands of kilometres of pipes delivering enormous daily gas flows from five basins to different demand centres. And the natural gas industry could contribute $53 billion to Australia’s economy each year by 2017. Things couldn’t be better for Australia when it comes to natural gas.
What is the one conclusion you could not possibly draw from this exciting and optimistic scenario? Shadow Energy and Resources Minister Ian Macfarlane reckons ‘New South Wales will run out of natural gas - literally, run out of gas - by 2016 if they don’t get some of their coal seam areas developed’. That’s right, Australia has managed to create a domestic gas shortage in the middle of a gigantic natural gas export boom.
Macfarlane’s claim is a bit iffy. What he really means is that NSW will have to import some natural gas because it doesn’t produce quite enough for its own use. But that’s the case already, so it’s just political scaremongering.
The real story here isn’t a shortage of natural gas. It can’t be when you’re exporting billions of dollars of the stuff. This is a story about Australia’s natural gas market changing from local demand and supply at cheap prices to become part of the global gas market. And that means both supply and demand has to take the international price as given. Unfortunately for you and us, the international price is damn high.
In other words, we’ve gone from making cheap gas for ourselves to making money by flogging the stuff overseas at four times the price. But when you can sell at four times the price overseas, why sell to the locals who can’t afford it at that price? Hence the ‘shortage’ of natural gas here in Australia. [Read more →]
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There’s always some corner of the market that’s making money for investors.
Even in the tough times, when all the ink seems to be in the red, you can still track down a trade with a bit of good old-fashioned detective work.
It may be more challenging than usual in today’s resource sector – but good opportunities still lurk out there.
The first place to start looking is in the energy sector. Even as the small resources index had a horror fall of 63% over the last eighteen months, one of my energy tips, Sundance Energy (SEA), went the other way, letting us lock in a gain of 63%.
July 11, 2013 Comments Off
It’s been more than two years since the Fukushima Daiichi Nuclear Power Plant disaster and it’s amazing the sentiment shift we are starting to see toward nuclear power once again. Time can heal anything.
Prior to the disaster in Japan, nuclear power was gaining rapidly in popularity globally. There were dozens of nuclear plants either in development or being planned prior to March 2011. And uranium stocks were once again in a bull market, led by many that traded on the TSX Venture.
After the disaster in Japan, the lights went out on nuclear power and uranium stocks collapsed. Uranium exploration stocks lost, on average, roughly 65% within 6 months of March 2011.
Flash forward to July 2013 and sentiment is turning bullish toward nuclear power and uranium stocks once again, which we believe will be the continuation of a long-term bull market for the commodity and sector.
With the global focus shifting to cleaner and cheaper power, natural gas and uranium are two very obvious choices. [Read more →]
July 8, 2013 Comments Off
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