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Michael Fitzsimmons

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  • Bakken Update: Buyout Candidates For The Second Half Of 2012 [View article]
    man, that would be very interesting....not sure about harold...i bet there have already been conversation at the hunting cabin ...
    Sep 1, 2012. 09:54 AM | 1 Like Like |Link to Comment
  • Bakken Update: Buyout Candidates For The Second Half Of 2012 [View article]
    yup...EOG and CLR are the big fish in the pond. man, that would be a huge game-changer.
    Sep 1, 2012. 09:52 AM | 1 Like Like |Link to Comment
  • Bakken Update: Buyout Candidates For The Second Half Of 2012 [View article]
    i hear ya jeep, but the big companies need big assets to move the needle. $5 billion mkt cap WLL could probably be taken out for what, $7 billion plus debt? that's nothing for a company like CVX or OXY, right? what did XOM spend on XTO, like $40 billion? time will tell and one thing is for sure - it will be interesting to see what happens with all these companies. meantime, bakken production keeps growing and growing :)
    Sep 1, 2012. 09:51 AM | 1 Like Like |Link to Comment
  • The Beauty Of Natural Gas Transportation [View article]
    chu should have been fired when he made his infamous quote: i am "agnostic" about natural gas transportation. can you imagine a sitting energy secretary saying he is "agnostic" about the one domestic fuel that is capable of significantly reducing the economic, environmental, and national security issues caused by america's dependence on foreign oil??

    i think the natural gas lobby missed a big opportunity. they should have taken out a full page ad in the WSJ demanding he resign or that obama fire him.
    Aug 31, 2012. 06:34 PM | 1 Like Like |Link to Comment
  • Statoil Will Transport Bakken Crude By Rail [View article]
    chancer - i am not sure where you got that info, but i am a bit skeptical. the opposition to the pipeline through the aquifer was opposed primarily by landowners in nebraska. btw, they were both republican and democrats. transcanada has no one to blame but themselves for what happened. by taking the shortest route (through the aquifer), they gave the landowners, environmentalists, and obama just the reason (excuse?) they needed to pull the rug out from under it. had they routed the pipeline around the aquifer in the first place, there's a good chance nebraskans would have been ok with it and it would have gone ahead. either way, the pipeline is going to get built. unfortunately america is addicted to gasoline, so what choice do we have but to import oil from foreigners? ANSWER: natural gas transportation :)
    Aug 31, 2012. 06:23 PM | 1 Like Like |Link to Comment
  • Bakken Update: Buyout Candidates For The Second Half Of 2012 [View article]
    well, they are public companies right? unless insiders own the majority of the outstanding stock, or there is a poison pill, would they even have a choice if a buyer went hostile? in the case of KOG, i have a feeling they might want to get out from under that debt load. i mean another "financial crisis" of who knows what trigger, and oil drops bigtime, i think KOG might be in a bit of a bind. they may be an eager beaver for doing a deal with a company with deep pockets.
    Aug 31, 2012. 09:43 AM | 1 Like Like |Link to Comment
  • Bakken Update: Buyout Candidates For The Second Half Of 2012 [View article]
    i'll even go so far as to guess it will be Chevron that buys WLL....
    Aug 31, 2012. 09:29 AM | 1 Like Like |Link to Comment
  • Statoil Will Transport Bakken Crude By Rail [View article]
    hi don, man, it would be great if that refinery got built. i wonder why a refinery hasn't been proposed for ND as well. you'd think with the natural gas by-product it would be a great place for a refinery. certainly pipelines are the most economic way to move the oil, but with the spread as wide as it is now, the length of time the pipelines will take to get built, and with production on track to double again in the next year, i think rail is the best alternative and is going to make PSX and STO some good money. i mean they are sticking their toe in the water: 2,000 cars and 1,000 cars (respectively)...they seem pretty confident in their analysis. in the case of STO, the WSJ article implied they will have enough capacity to takeway all of their ND production via rail.
    Aug 31, 2012. 09:28 AM | 1 Like Like |Link to Comment
  • The Beauty Of Natural Gas Transportation [View article]
    ouch! i have to admit there is some truth to what you are saying. at that said, there are some winners in the sector. take a look at a 5-year chart of WPRT, which has been a great investment. i owned it at one point, and sold it too early! also, XOM is fairly balanced play on oil/gas (roughly 50/50) and has exposure to very profitable international gas. take a look at its 10 year chart. i will grant you FSYS and CLNE haven't done much at all. and of course CHK is fighting low nat gas prices and cash flow issues, which i mentioned. anyhow, thanks for your perspective on that.

    so maybe i am a dreamer of what could be, but our current path of gasoline addiction must change or, i believe, most investment won't be worth doodly squat because the financial system we have (printing dollars to pay for foreign oil) is unsustainable. and this is the real motivation for my writing. at the same try, i do recommend mostly oil and precious metal related investments because i am a realist.
    Aug 31, 2012. 08:17 AM | 1 Like Like |Link to Comment
  • A Two Pronged Case for Holding Gold [View article]
    PRONG #1: Foreign oil imports.
    PRONG #2: The Fed printing money to pay for PRONG #1.

    The Fitzman's Law of Economics:

    "You cannot solve a commodity problem (oil) with monetary policy."

    It's impossible. But boy, they sure keep trying....
    Aug 30, 2012. 05:56 PM | 1 Like Like |Link to Comment
  • The Beauty Of Natural Gas Transportation [View article]
    please see my response above to zebra (points 1 and 2). and even if natural gas prices reach those of gasoline, we'd still be way ahead because that mean $34 billion a month would stay inside the country instead of leaving it. the economic multiplier effect of that kind of wealth would be incredible. that is why i say, we are sitting on the precipice of economic prosperity if we could just get policymakers to stop taking money from lobbyists to keep us addicted to gasoline instead of allowing nat gas to take its rightful place in the transportation sector.
    Aug 30, 2012. 01:32 PM | 1 Like Like |Link to Comment
  • The Beauty Of Natural Gas Transportation [View article]
    zebra - i certainly can understand your point of view. that said, there are NGV owners in states like oklahoma and utah that would argue an NGV costs less to run than your gasoline vehicle. they'd probably cite how much less their cost per gas gallon equivalent is along with how much less maintenance their cars and trucks require burning a much cleaner fuel. one day, all states will have the nat gas refueling infrastructure to make this possible.

    as for getting the cost of nat gas up, XOM is doing their best by setting up LNG export capability. nothing pains me more than watching U.S. companies export our abundant, clean, and cheap resource so that we can import dirty and expensive oil. however, i think it will be relatively hard for XOM to substantially raise the price by this strategy. here are the two main reasons why:

    1) as i said in my earlier article on why XOM should support nat gas transportation (, the largest 40 domestic producers pump just over half of all natural gas. what this means is the space is dominated by small and medium sized companies that will simply turn on their spickets every time gas rises and makes it worth their while.

    2) even though U.S. nat gas is currently much cheaper than in asia or europe (as shown in the article above), the cost to liquify it, load it, ship it, transport it, and de-liquify it costs money. at some point, it will be more expensive to export it than to just use it domestically.
    Aug 30, 2012. 01:25 PM | 1 Like Like |Link to Comment
  • The Gold Standard Gets Another Look [View article]
    peter: i would be interested in your take on the "oil factor" here. in my latest SA article, i determined that, at July's 2012 monthly rate and gold quote, the U.S. will effectively transfer the entire wealth of its gold holdings overseas to pay for foreign oil in a mere 10 years time (yet note that we have been importing foreign oil for over 30 years...). isn't the big driver behind gold prices, and the root cause of America's economic morass (for lack of a better word), in fact, its addiction to foreign oil? what say you?
    Aug 29, 2012. 09:44 PM | 1 Like Like |Link to Comment
  • A Dividend Bubble? A Reality Check For The Fear Mongers [View article]
    why would you pick XOM as a dividend pick in the oil sector? XOM's dividend yield (2.59%) is the lowest in its peer group by a significant margin. here are some other choices:

    CVX: 3.22%
    STO: 4.20%
    COP: 4.69%
    RDS.A: 4.89%
    Aug 29, 2012. 09:39 AM | 1 Like Like |Link to Comment
  • 1 Oz Gold Valued By U.S. Currency In Circulation And Outstanding Debt [View article]
    i often wonder about this issue. i remember back in the 2008-2009 time frame, there were occasions when both and where completely out of american eagle 1oz coins. yet gold would fall. this didn't make sense to me if one considers simply supply and demand. however, how does can the Fed really control gold prices without selling its gold holdings, which it hasn't done. so it's an interesting issue. some think the price of gold is controlled. i guess i don't know enough about how the price is set. it is kind of strange to me that both and quote the same price, while i am sure the individual companies have very different supply/demand requests from their customers on a minute by minute basis.

    here are some articles on the setting of gold prices:

    the pricing is (supposedly....) set by five members of the "London Gold Market Fixing" committee, who (supposedly...) match market supply and demand. however, as we have seen with Libor scandal, and the bank dealing with iran during the sanctions, how can we trust the Brits on something like this? it seems to me the gold market is rigged, if not, you'd see different prices from different online dealers. that needs to happen. and i am sure it will one day. it's like everything it seems, once you shine a light on it, you discover some strange controlling interest (i.e. people profiting due mainly to an historical position of "authority".)
    Aug 29, 2012. 09:24 AM | 1 Like Like |Link to Comment