There are no Transcripts on IEO.
Sat, Oct. 18, 8:25 AM
- A little discussed reason the stock market may have hit bottom and started to recover: The realization that the lowest oil prices in four years will provide a stimulus of more than $1T to global economies, according to Citigroup.
- “A reduction in oil prices also results in a reduction in prices across commodities, starting with natural gas, but also including copper, steel and agriculture,” says Ed Morse, the bank's head of global commodities research.
- U.S. motorists on average are enjoying the cheapest gasoline since Feb. 2011, and they are spending ~$230M/day less at the pump than on July 4, AAA says.
- Alas, some big banks say the collapse in oil is nearly over, but much will depend on whether OPEC supports the price by cutting production, as is the norm, or protects its market share by keeping production steady.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, UGA, DTO, DBO, DUG, IYE, IEO, CRUD, PXE, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Thu, Oct. 9, 3:25 PM
- Crushed by relentless anxiety about oversupply and weakening global demand, Nymex crude oil futures closed down $1.54 at $85.76/bbl, their lowest close since Dec. 2012, while Brent crude fell below $90/bbl for the first time in more than two years.
- Including today's losses, WTI crude is down 6.2% since the start of the month and Brent has surrendered ~5%.
- In the face of surging output, a move in WTI below its 10-year average at $82 is not out of the realm of possibility, Brown Brothers Harriman says, adding that "a break of $73/barrel could send WTI toward $64, which corresponds with the 2010 low."
- Among big oil names so far today: APC -6.3%, LINE -4.6%, EPD -3.8%, DVN -3.8%, MRO -3.6%, HES -3.8%, KMI -3.7%, TOT -3.5%, STO -3.3%, RDS.A -3.1%, OXY -3%, KMP -3%, XOM -2.6%, COP -2.6%, MUR -2.6%, CVX -2.5%, BP -2.4%.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, DTO, DBO, DUG, IYE, XES, IEO, CRUD, IEZ, PXE, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Thu, Oct. 9, 9:56 AM
- Global oil producers open broadly lower as oil prices continue to slide on concerns about high supplies and weak global economic growth (also): RDS.A -2.7%, STO -2.7%, TOT -2.5%, HES -2%, APC -1.7%, BP -1.6%, CVX -1.5%, COP -1%, XOM -0.8%.
- Brent prices slump to $91/bbl, approaching two-year intraday lows, and Nymex crude tumbles to $86.67/bbl to an 18-month intraday low.
- The EIA said yesterday that U.S. crude supplies rose by a more than expected 5% last week, while gasoline and distillate inventories unexpectedly grew as well.
- Barclays is cutting its oil price forecasts: It now sees U.S. crude averaging $85/bbl in Q4 and $89 in 2015, down from previous estimates of $98 in Q4 and $100 next year, and Brent crude averaging $93/bbl in Q4 and $96 in 2015, down from a respective $106 and $107 previously.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, DTO, DBO, DUG, IYE, IEO, CRUD, PXE, USL, UWTI, PXJ, FENY, DNO, DWTI, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Tue, Sep. 16, 7:27 PM
- A new study finds that it's not the actual process of fracking that can cause water pollution; the bigger problem is faulty well construction.
- The real concern, according to an analysis published yesterday by the peer-reviewed Proceedings of the National Academy of Sciences, are leaks in the steel-and-cement casings surrounding the well bore, which let gas escape before it gets to the surface, making water undrinkable and in some cases explosive.
- "Where contamination occurs, it related strictly to well integrity," says a co-author of the study, who adds, "The answer is not to stop drilling. The fix is better executions on the construction of the well and improving well integrity."
- The study is fueling calls for stricter standards for well construction that could increase costs for energy companies.
- ETFs: XLE, ERX, VDE, OIH, ERY, FCG, XOP, DIG, GASL, DUG, IYE, XES, IEO, IEZ, GASX, PXE, PXJ, DBE, FENY, RJN, RYE, FXN, JJE, DDG, ONG, RGRE, UBN
Thu, Sep. 11, 6:54 PM
- The International Energy Agency lowers its forecast for global oil demand growth for the third month in a row, calling the recent slowdown in demand "nothing short of remarkable."
- The IEA now foresees global oil demand growth of 900K bbl/day in 2014, a decrease of 65K bbl/day vs. last month's forecast and down by 300K bbl/day since July.
- Oil demand growth in Q2 was at its lowest in two and a half years due to economic weakness in Europe and China, a trend the IEA expects will continue to hurt demand; the agency now expects oil demand to rise by 1.2M bbl/day next year, but that's 100K bbl/day less than it forecast last month.
- Saudi Arabia finally appears to be responding to the lower demand outlook, as it cut its oil output by 330K bbl/day last month and appears to have run below 7M bbl/day for the last four months, its lowest level since Sept. 2011.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, DTO, DBO, DUG, IYE, XES, IEO, CRUD, IEZ, PXE, USL, PXJ, FENY, UWTI, DWTI, DNO, RYE, FXN, SZO, OLO, DDG, OLEM, TWTI
Wed, Sep. 10, 3:28 PM
- Energy stocks, especially refiners, are taking a beating following the latest EIA inventory report that said gasoline stockpiles rose by 2.4M barrels last week, helping send U.S. crude oil futures to 16-month lows (-1.2% to $91.61/bbl) and Brent crude to 17-month lows (-1.1% to $98.02).
- The report is bearish given the large increases in refined product inventories; "even though the crude drawdown was close to expectations, it seemed to disappoint," Again Capital's John Kilduff says.
- The EIA report followed the agency’s updated demand growth report issued yesterday and this morning’s release of OPEC’s report on the oil market; both see lower demand growth this year and next.
- Oil majors are mostly lower: XOM -0.6%, CVX -1.4%, COP -0.3%, but BP (+2.9%) and RDS.A (+1%) are higher.
- Refiners are hit hard: VLO -3.6%, PSX -1.5%, MPC -1.9%, HFC -2.5%, TSO -2.9%, WNR -4.1%, CVI -1.6%, ALJ -1.8%, PBF -3.5%, DK -1.8%, CLMT -1.8%.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, ERY, XOP, DIG, BNO, UGA, DTO, DBO, DUG, IYE, IEO, CRUD, PXE, USL, PXI, PXJ, DBE, FENY, UWTI, DWTI, DNO, RJN, RYE, FXN, SZO, OLO, JJE, DDG, ONG, RGRE, OLEM, TWTI, UBN
Mon, Sep. 8, 12:32 PM
- The day's five biggest decliners in the S&P 500 are all energy companies - Newfield Exploration (NFX -5.6%), EOG Resources (EOG -3.6%), Anadarko Petroleum (APC -2.9%), Cimarex Energy (XEC -3.3%) and Pioneer Natural Resources (PXD -3.4%) - as crude oil prices slide to new lows, including Brent crude's first move below $100/bbl in more than a year.
- Brent crude dropped $1.12, or 1.1%, to $99.70/bbl after falling to as low as $99.36, a 16-month low, while U.S. crude slipped more than a percent to below $92 after settling at $93.29 on Friday for its sixth weekly drop in seven.
- Traders are concerned crude demand won't keep up, with data from the U.S. and China, the world's top oil consumers, suggesting their economies aren't growing as quickly as had been hoped.
- ETFs: USO, OIL, UCO, SCO, XOP, BNO, DTO, DBO, IEO, CRUD, PXE, USL, DBE, UWTI, DWTI, DNO, RJN, SZO, OLO, JJE, ONG, RGRE, OLEM, UBN
Tue, Sep. 2, 3:25 PM
- The energy sector (XLE -1.3%) is lit up bright red this session as WTI crude oil for October delivery dives 3% to $93.04 per barrel, within a dollar or so of 2014's low price. Also headed south is natural gas, -4.1% to $3.89 per MBtu.
- USO -3%, UNG -4.5%
- The Dow (DIA -0.2%) is the weakest of the major averages, with Dow components Chevron (CVX -1.5%) and Exxon (XOM -1.1%) among the index's worst performers.
- ETFs: XLE, ERX, VDE, OIH, ERY, FCG, XOP, DIG, GASL, DUG, IYE, IEO, GASX, PXE, PXJ, FENY, RYE, FXN, DDG
Fri, Aug. 29, 9:58 AM
- The U.S. government will resume issuing oil and gas leases next year for federal lands in California after a new study found limited environmental impacts from fracking and other enhanced drilling techniques.
- The study conducted by California's Council on Science and Technology concluded the current level of fracking and other well-stimulation techniques did not seem to be poisoning water supplies or increasing earthquake risks in the state.
- The research could prove a springboard for California to increase fracking activity during the coming years.
- ETFs: XLE, ERX, VDE, OIH, ERY, XOP, DIG, DUG, IYE, IEO, PXE, PXJ, FENY, RYE, FXN, DDG
Tue, Aug. 26, 3:49 PM
- Cash earned from operations by 25 leading North American E&P companies is expected in aggregate to exceed their capital spending next year for the first time since 2008, according to a Financial Times analysis.
- Shale companies' finances have improved rapidly as a result of a shift by many away from natural gas towards more lucrative oil production and a pick-up in natural gas prices after they fell to 10-year lows in 2012.
- Analysts’ consensus forecasts now indicate that the leading shale companies’ operating cash flows in 2015 will show an excess of ~$2.4B over their capital spending vs. a shortfall of $32.2B in 2012 and $8.8B last year.
- Case in point: Chesapeake Energy (NYSE:CHK) in 2012 had capital spending almost $12B ahead of its cash flow from operations, but this year and next it is expected to be able to cover its spending almost entirely from its income.
- ETFs: XLE, ERX, VDE, OIH, ERY, FCG, XOP, DIG, GASL, DUG, IYE, IEO, GASX, PXE, PXI, PXJ, FENY, RYE, FXN, DDG
Thu, Aug. 7, 11:58 AM
- Technological improvements will allow energy companies to scrape more crude out of the ground and drive U.S. oil production as high as 14M bbl/day, Pioneer Natural Resources (NYSE:PXD) CEO Scott Sheffield says.
- The industry may not discover any more elephant fields, but operators will continue to find new opportunities in conventional plays, the CEO says, noting the industry is pursuing new techniques for boosting the recovery rate at wells up from the 2%-3% common today.
- Only lower oil prices can stop the upward march in U.S. production, Sheffield adds, warning that a price collapse for domestic West Texas Intermediate crude would cause “a tremendous turndown.”
- ETFs: XLE, ERX, VDE, OIH, ERY, XOP, DIG, DUG, IYE, IEO, PXE, PXJ, FENY, RYE, FXN, DDG
Sat, Jul. 19, 10:10 AM
- The Obama administration yesterday moved closer toward allowing oil and gas drilling off seven Atlantic coast states for the first time in decades, establishing guidelines for seismic testing that would gauge offshore reserves.
- Although geophysical research companies will still have to apply for individual permits to conduct seismic studies in the area, and undergo more environmental scrutiny of their specific plans, the Interior Department's decision opens the door for the activity - and for possible drilling off the U.S. east coast in the 2020s.
- Environmental groups oppose the action, saying tests would pose serious risks to species including sea turtles and some whales, and calling seismic testing “a gateway drug to offshore drilling.”
- ETFs: XLE, ERX, VDE, OIH, ERY, FCG, XOP, DIG, GASL, DUG, XES, IYE, IEO, IEZ, PXE, GASX, PXJ, FENY, RYE, FXN, DDG
Mon, Jun. 16, 7:17 PM
- The consensus opinion amid Iraq's convulsion is positive on energy stocks and negative on U.S. retailers and other consumer stocks given that oil prices are likely to remain elevated and provide another headwind for consumers already struggling with slow wage growth and high personal debt.
- The S&P 500 energy sector is up 5.4% in the past month as Brent crude has climbed, and up 10% YTD; with the strong correlation between oil shocks and economic recessions, concern is growing that Iraq's chaos could derail the global economy.
- But some analysts are beginning to say energy stocks are too rich and could quickly give up gains if the Iraq crisis is defused; Oppenheimer's Fadel Gheit says oil stocks are overpriced and are trading as if crude was going to stay at $110/bbl.
- "If they can hold onto Baghdad and the south of Iraq, 3M barrels will continue to flow and it won't be a big deal," said Again Capital analyst John Kilduff, while admitting that "any credible threat to central Baghdad or the oil fields - it's $150 just for starters."
- ETFs: USO, OIL, XLE, UCO, ERX, VDE, OIH, SCO, ERY, FCG, XOP, DIG, DTO, BNO, DBO, GASL, DUG, IYE, IEO, CRUD, GASX, PXE, USL, PXJ, UWTI, DWTI, DNO, FENY, RYE, SZO, FXN, OLO, DDG, OLEM, TWTI
Tue, Jun. 3, 2:22 PM
- Meeting the world’s energy supply needs by 2035 will require more than $48T of investment, with more than half needed to compensate for declining output at mature oil and gas fields and the rest on finding new supplies to meet rising demand, the IEA says in a new report.
- North American shale output is forecast to tail off from the middle of next decade, restoring the importance of supplies from the Middle East and OPEC.
- Europe could face an energy shortfall if power companies and oil producers fail to invest ~$2.2T through 2035 to replace aging electricity infrastructure and meet regulatory goals to reduce carbon emissions, according to the agency, which advises industrialized nations on energy policy.
- ETFs: XLE, ERX, KOL, VDE, OIH, ERY, FCG, XOP, DIG, GASL, DUG, FRAK, IYE, IEO, IXC, GASX, PXE, IPW, PXJ, FENY, RYE, FXN, GNAT, DDG, FILL, EMEY
Tue, May. 20, 10:27 AM
- Twenty-seven year old Mark Hiduke just raised $100M for his three-week old company, but he's a Texas oilman, not a tech entrepreneur. His Dallas-based PetroCore, LLC received the commitment from a local P-E firm to buy land and drill shale wells.
- “These guys are going to be the poster children of self-made oil and gas tycoons,” says Nathen McEown, a 33-year-old accountant who organizes networking dinners. “Or they could be the poster children of how too much money is chasing deals.”
- Known as "the great crew change," millennials - who for decades have spurned energy for other careers - are flocking back into an industry where 71% of the workforce is aged 50 or older. The University of Oklahoma's energy management program has sextupled in size to 600 over the last decade. "The shale revolution changed everything," says one of its graduates Ryan Watt, whose Addax Minerals has raised about $35M to speculate on oil.
- ETFs: XLE, ERX, VDE, OIH, ERY, XOP, DIG, DUG, FRAK, XES, IYE, IEO, IEZ, PXE, PXJ, PXI, PSCE, FENY, RYE, FXN, DDG, USO
Mon, May. 19, 7:17 PM
- Mexico, Iran and other countries that once played hardball with big oil companies are now rolling out the welcome mat, offering generous deals in the hope they will bring capital to stimulate output.
- But it isn't certain the big oil firms will want to return to all those countries, as the economics of the oil business may be changing to favor different kinds of exploration projects elsewhere in the world, WSJ reports.
- The biggest shake-up is coming in Mexico, where production has been falling steadily while rising electricity demand has forced dependency on imported natural gas and sent prices soaring; Total (TOT), Chesapeake (CHK) and Chevron (CVX) have expressed interest in entering the country.
- Iran is considering big changes to its current stringent oil terms, but some analysts say "it will be a slow process to get Western oil companies back to Iran... Iran's reservoirs are prolific, but they are also complex and in poor shape."
- Also, he Ukraine crisis has reinforced the trend in thinking about geopolitical risk as being a big factor.
- ETFs: XLE, ERX, VDE, OIH, ERY, FCG, XOP, DIG, GASL, DUG, XES, IYE, IEO, IXC, IEZ, GASX, PXE, IPW, PXJ, BARL, PXI, PSCE, FENY, RYE, FXN, GNAT, DDG, IOIL, FILL
IEO vs. ETF Alternatives
The iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Select Oil Exploration & Production Index.
See more details on sponsor's website
See more details on sponsor's website
Other News & PR