BrotherMaynard

Plenty of Natural Gas: Exploration and Production Companies Keep Increasing Oversupply

excellent point about shut-in storage -- it should be considered inventory. the future supply problem b/c of lower rig counts is overblown. that's why curve flattening should be the next stage of this cycle.

just to expand on the EOG comment, stephen schork today:

"several Northeast pipelines started issuing operational flow orders (OFOs) in an apparent attempt to limit shippers exceeding their contractual limits...In addition to the Labor Day holiday, last week’s report also comprised the ratchet clause rollover. Injection ratchet clauses in the East require shippers to inject working gas through scheduled stages in order to preserve operational integrity. By September 01st no more than 80% of storage can be filled....According to the latest estimate from the EIA, maximum storage capacity in the East is 2.178 Tcf. As of two reports ago, week ended August 28th, estimated storage was 1.78 Tcf. That calculation was already 81½% of capacity or 1½ points above the ratchet. In other words, storage in the East over the last two reports was at operational capacity. Thus, the OFOs were a likely means to hold storage below the 80% threshold...What’s so bullish about that? Absolutely nothing."


here's the rest of schorks note: www.cnbc.com/id/327973...

ConocoPhillips: More Than Just a Great Stock

"In terms of portfolio diversification, it is academically and statistically proven that the DJ-AGI is quite beneficial to any portfolio/investor"

So were asset backed securities and CDSes. My point being, everything looks good on paper, simply because on paper, its doesnt interact with anything. As we saw during 2008 -- all asset class correlations converge at 1 during a crisis. Corporate bonds tanked, commodities tanked, stocks tanked, real estate tanked...you name it and it tanked. So just a word of caution...just diversifying doesn't do you any good. Correlations can be broken or reversed, sometimes permanently, without a moments notice. What should you do? I'm not 100% sure, but just because something is empirically tested doesn't mean that the statistical sample is a complete descriptor of the statistical population.

Time to Fill Up on the Strategic Petroleum Reserve

why don't we wait until oil hits $30 until we fill up.

The 'Peak Oil' Myth: New Oil Is Plentiful

next stop...oil $40...look out below!!!!