Jefferies' New Wildcatters ETF: A Better Mousetrap
There are no Transcripts on PXE.
There are no News articles on PXE.
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
Fri, May. 9, 12:23 PM
- The EPA is taking the first formal step toward requiring oil and gas drillers to disclose the content of fluids they use in fracking, saying it will begin to solicit public comment on whether companies should publicly list the chemicals used to extract oil and gas out of the ground.
- Disclosure of the chemicals by companies could be positive for industry if it can allay fears of fracking opponents about toxic chemicals in groundwater, says natural gas consultant Miriam Swydan Erickson.
- Baker Hughes (BHI) said last month that it will spell out all the chemicals it uses in fracking, but many other major companies have said their chemical formulas are proprietary and disclosure could help competitors copy their process.
- ETFs: XLE, ERX, VDE, OIH, ERY, FCG, XOP, DIG, DUG, GASL, FRAK, XES, IYE, IEO, IEZ, GASX, PXE, PXJ, PXI, PSCE, FENY, RYE, FXN, DDG
Tue, May. 6, 7:25 PM
- The U.S. energy boom is undeniable - just today, the government said the U.S. next year will import only 23% of the crude oil it needs, the lowest since 1970 - but it's worth noting that the boom has been bought on credit.
- Many oil companies that lead the way in the fracking revolution spend more cash leasing land and drilling than they make selling oil and gas; Standard & Poor’s says 75 of the 97 E&P companies it covers have junk bond ratings.
- Little wonder that EOG - which generated $2.27B from its operations and spent $1.9B in Q1, its fourth straight cash flow-positive quarter - has one of the highest credit ratings (A-) of any oil and gas driller.
- Heard On The Street's Liam Denning thinks E&P investors now may be just chasing momentum, leaving them vulnerable to sharp corrections.
- ETFs: XLE, ERX, VDE, OIH, ERY, FCG, XOP, DIG, DUG, GASL, FRAK, IYE, IEO, GASX, PXE, PXJ, PXI, PSCE, FENY, RYE, FXN, DDG
Tue, Apr. 22, 5:15 PM
- Some S&P energy stocks set new 52-week highs today, including Hess (HES), EQT and Baker Hughes (BHI), as the sector begins to catch up to the hype about the U.S. energy renaissance.
- Analysts say oil and gas drillers are just starting to reap the benefits of an ancillary boom in energy-related technology and innovation; RBC Capital sees bullish prospects for rig companies, adding that drillers such as Helmerich & Payne (HP), Patterson-UTI (PTEN) and Nabors Industries (NBR) are best positioned to capitalize on the boom.
- BofA/Merrill's Stephen Suttmeier offers a technical set-up, seeing energy poised for a breakout similar to Oct. 2010, when the sector moved above its 13-, 26- and 40-week relative moving averages and outperformed for another six months.
- ETFs: XLE, ERX, OIH, VDE, ERY, FCG, XOP, DIG, DUG, GASL, FRAK, XES, IYE, IEO, IEZ, GASX, PXE, PXJ, PXI, PSCE, FENY, RYE, FXN, DDG
Sat, Mar. 29, 8:25 AM
- The Obama administration is proposing rules to cut methane emissions at sites from landfills to coal mines, laying the groundwork for regulations that could affect the energy and agriculture industries.
- The first big target is the oil industry, with new Interior Department regulations coming later this year to curb venting and flaring of natural gas at wells on public lands and further air mandates possible from the EPA by 2016.
- The oil industry says energy firms already are taking steps to plug methane leaks and capture natural gas flowing out of oil wells, and that additional regulations "could have a chilling effect on the American energy renaissance."
- Agriculture accounts for 36% of human-related methane produced in the U.S., yet proposals for curbing gas emitted by livestock rely strictly on voluntary measures that are largely already under way.
- ETFs: XLE, ERX, KOL, OIH, VDE, ERY, FCG, XOP, DIG, DUG, GASL, FRAK, XES, IYE, IEO, IEZ, GASX, PXE, PXJ, PXI, PSCE, FENY, FXN, RYE, DDG
Thu, Mar. 27, 11:55 AM
- Investors are pouring money into energy companies, putting 7x as much into energy sector ETFs as they did last quarter and betting that profits of energy producers rise along with crude oil and natural gas prices.
- Energy collecting new money reflects optimism for a turnaround in companies like Exxon Mobil (XOM), XLE's biggest holding, but the bet may not pay off, as analysts generally foresee lower global oil prices in 2014 and gains in gas.
- ETFs focusing on oil and gas companies have captured 20% of the $10B in net inflows into ETFs this year, after hauling in only 2.5% of fresh money last quarter and 7.7% in all of 2013.
- ETFs: ERX, OIH, VDE, ERY, FCG, XOP, DIG, DUG, GASL, XES, IYE, IEO, IEZ, GASX, PXE, PXJ, PXI, PSCE, FENY, FXN, RYE, DDG
Fri, Feb. 21, 4:49 PM
- ConocoPhillips (COP) CEO Ryan Lance refutes the warnings of shale boom skeptics, maintaining the U.S. shale revolution is only in the “first inning of a nine inning game” and critics shouldn’t assume growing shale production will stop any time soon.
- Skeptics say the U.S. is facing a shale bubble, and energy production declines much more dramatically from shale drilling relative to conventional techniques, but Lance adamantly disagrees, arguing that the industry’s technology advances could compensate for any projected production declines.
- "What we’re learning is we’ve only scratched the surface of what technology can do to improve the outlook over the years,” Lance says, and “this is the layer that can last for quite some time."
- ETFs: XLE, ERX, OIH, VDE, ERY, FCG, DIG, XOP, DUG, GASL, FRAK, IYE, IEO, GASX, PXE, PXJ, PXI, PSCE, FXN, FENY, RYE, DDG
Nov. 12, 2013, 7:15 PM
- The secret, dirty cost of the U.S. ethanol push: The ethanol era has proven far more damaging to the environment than promised and much worse than the government admits today, according to an AP analysis. (also)
- As farmers rushed to find new places to plant corn, they wiped out millions of acres of conservation land, destroyed habitat and polluted water supplies, the report says; 5M acres of land set aside for conservation have vanished on Obama's watch.
- Government mandates to increase ethanol production have helped drive up corn prices, leading to marginal land being farmed to produce the crop; in 2012, 44% of the U.S. corn crop was used for fuel, about twice the rate in 2006.
- Relevant stocks: VLO, ADM, PEIX, BIOF, GPRE, REGI
- ETFs: FUE, IEO, IEX, IYE, PXE, PXI, XES, XLE, XOP, VDE, RYE, FXN, OIH, PXJ, PSCE, ERX, DIG, ERY, DUG, DDG
Oct. 16, 2013, 7:15 PM
- The U.S. has passed Saudi Arabia as the world’s biggest oil producer, thanks to the fastest oil production expansion over a four-year period since the 1970-74 Saudi output surge, energy analysis firm PIRA says.
- The U.S. growth rate is greater than the sum of the growth of the next nine fastest growing countries combined and has covered most of the world's net demand growth over the past two years, according to PIRA.
- Total liquids produced by the U.S., defined broadly to include supplies such as crude oil, condensate, natural gas liquids and biofuels, should average 12.1M bbl/day in 2013, a 3.2M bbl/day jump from 2009.
- ETFs: IEO, IEZ, IYE, PXE, PXI, XES, XLE, XOP, VDE, RYE, FXN, OIH, PXJ, PSCE, ERX, DIG, ERY, DUG, DDG.
Oct. 15, 2013, 6:58 PM
- The U.S. Supreme Court today agreed to review the EPA’s approach to regulating greenhouse gas emissions from refineries, power plants and other stationary sources, throwing the Obama administration's landmark rules into a state of uncertainty.
- The move was applauded by the American Petroleum Institute, which said “the Clean Air Act clearly only requires pre-construction permits for six specific emissions that impact national air quality - not greenhouse gases."
- The news breathes new life into lawsuits by industry groups and several states that challenged the EPA's regulations; last year, the D.C. federal appeals court sided with the EPA on nearly every issue in the case.
- ETFs: GRN, IDU, PUI, XLU, VPU, RYU, FXU, PSCU, UPW, SDP, UTLT, IEO, IEZ, IYE, PXE, PXI, XES, XLE, XOP, VDE, RYE, FXN, OIH, PXJ, PSCE, ERX, DIG, ERY, DUG, DDG.
Oct. 14, 2013, 2:49 PM
- The U.S. may be set to surpass Russia as the world’s largest oil and natural gas producer, but it ranks fifth out of 13 countries in overall energy security, says a report from Roubini Global Economics (yes, that Roubini) and Securing America’s Future Energy.
- The U.S. ranks high because of its relatively high levels of domestic oil production, but its fuel consumption per capita was higher than everyone except Saudi Arabia; the more fuel a country consumes, the more susceptible it is to supply disruptions and price volatility.
- Saudi Arabia and Russia, which derive ~90% and ~50% respectively of export revenues from oil, are lowest ranked, while Japan and the U.K. are the top two because they rank lowest on the oil intensity scale; Japan consumes 0.3 barrels of oil per $1,000 of its GDP, but the U.S. consumes nearly twice as much.
- ETFs: IEO, IEZ, IYE, PXE, PXI, XES, XLE, XOP, VDE, RYE, FXN, OIH, PXJ, PSCE, ERX, DIG, ERY, DUG, DDG.
PXE vs. ETF Alternatives
The PowerShares Energy Exploration & Production Portfolio (Fund) is based on the Energy Exploration & Production Intellidex Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors. Securities shown to possess the greatest capital appreciation potential are selected by the Index.
See more details on sponsor's website
See more details on sponsor's website
Other News & PR