General Motors (GM) and Ford (F) have joined together to develop nine- and 10-speed automatic transmissions as part of an effort to make their cars more efficient. The move represents the third time the car giants have teamed up in the last ten years to produce new transmissions. Ford and GM have their eyes on a 2025 deadline to develop cars with a fuel economy of 39 miles per gallon, or two thirds above the average for 2012 vehicles. [View news story]
Coming from those 2, I would not buy one unless it came with a 10 year warranty or they had been making them for at least that long and got all the bugs out of them.
Environmental Decision: Natural Gas Transportation Or Keystone-XL? [View article]
Putting all your eggs in one basket is not such a good idea - America needs both. You would find that if America became overly dependent on nat gas, supply and demand would dictate the price goes up. Ethanol is a joke because of politics - sugar cane based ethanol is cheap and makes sense. Corn based ethanol is expensive and makes no sense at all but America has a lot of farmers growing corn and not so many growing cane.
Environmental Decision: Natural Gas Transportation Or Keystone-XL? [View article]
The reality is that both are needed. America is still importing huge amounts of oil and the natural gas bonanza is driving the economy in many more ways other than transportation and giving America an edge over foreign competitors. Moving towards energy independence for North America also would dictate both are needed. The Question is will Obama do the right thing or will he sell out America, America's closest friend and largest trading partner???
Another excellent article Emmet! The big winners with the current dip in gold prices will be the buyers - both of physical gold and gold equities. The biggest winner of the winners will more than likely be China - its no secret that they have trillions of U.S. dollars and that they would like to move out of a lot of that position and right now gold is on sale. Will it get cheaper - maybe but no doubt in my mind that it will also go a lot higher. Even if you ignore the political uncertainty, supply/ demand dictates a higher price just on the facts that the world is printing huge amounts of money and the growing middle class in places like China and India. JMO
My read - They are selling of the operations they consider to not be world class or core to their business. TRQ on the other hand is a world class deposit and Tinto has stated that it is core to Tinto's business. Ivanhoe Australia and South Gobi are subsidiaries of TRQ - they are not selling TRQ.
Rio Tinto (RIO) is accelerating a plan to sell billions of dollars in non-core assets despite a slowdown in commodities that could lower the price tag on the deals. Latest to go on the block is the 57% stake in Ivanhoe Australia owned by unit Turquoise Hill Resources (TRQ), with a market value of ~$156M. RIO also has been trying to sell TRQ’s 58% stake in Mongolia-focused SouthGobi Resources. [View news story]
Tinto is cleaning house - First it sells what it does not want (Does not seem to matter that market conditions suck as far as resource sales are concerned). Then it will beef up in area's/ projects where it has targeted growth. IMO - TRQ has to be on their mid term radar for purchase. First though they need to get things Ironed out with the GOM. JMO
the problem with Mongolia and specifically Oyu Tolgoi is and has always been the government of Mongolia. The GOM suffers from what I call "The Banana Republic Syndrome". Every time the government changes, the new powers that be think they can ignore all past agreements and do whatever they want. They need to keep learning the hard way that the real world does not work that way and of coarse each time this happens, everything slows down to a crawl and Mongolia suffers. OT could have been in production 3 years ago, producing revenue and jobs for the GOM and the people of Mongolia as well as good returns for investors. The reasons it is not and that many other projects such as Tavan Tolgoi are going no where are directly related to the government of Mongolia and the fact that they seem to think that they can keep changing the rules. They learned this from the old Commies that ran the place and could and did do what ever they wanted when ever they wanted. Again the real world does not work that way.
Turquoise Hill And Rio Tinto: Are They Good For Mongolia? [View article]
Mogi - here is a description from someone with "feet on the ground" in Mongolia - perhaps a bit harsh but then sometimes you got to call something for what it is.
I have copied part of the article below as well: By Elizabeth Bryning The other morning when I was reading the newspaper I came across an article that made me almost choke on my coffee. The article said that Mongolia had been ranked 15th among the top places in the world to visit in 2013. Now, don’t get me wrong, I certainly agree that Mongolia is one of the top places in the world to visit; it is definitely a country everyone should see, in any year. What made me splutter my coffee all over the newspaper was the reason given in the article for visiting Mongolia: its “untouched countryside.” Untouched? Mongolia’s countryside described as “untouched?” I could only assume that the author of the article has never been here. It seems to me that the only explanation for the choice of the word “untouched” was because the author’s feet have never touched Mongolia’s soil. I arrived in Mongolia several years ago and have been searching ever since for some “untouched” countryside. I have yet to find it. There may be an “untouched” corner somewhere. I haven’t been everywhere. But describing the general countryside of this country as “untouched” is, well, “creative.” The first thing you notice when you’re travelling in the Mongolian countryside is the number of tracks crisscrossing the steppe. There are sections of land that have so many tracks, side by side, that it resembles a ten-lane highway. This is not my idea of “untouched.” Then you notice the many exposed patches on the steppe where the pasture has been grazed completely away and the top soil is eroding rapidly, throwing dust into your eyes as your four-wheel-drive bounces by. Nope, that doesn’t seem very “untouched” to me either. And when you get out of your vehicle and walk around, you can barely go five paces without tripping over an empty vodka bottle, even in the most remote and unpopulated corners of the country. Hell no, that’s not “untouched.” And the amount of plastic waste littering the steppe makes you think “rubbish tip,” not “untouched.”
Turquoise Hill And Rio Tinto: Are They Good For Mongolia? [View article]
Well Emmet I would say the yourself, Jon Springer and Bob Johnson know a lot about Mongolia and that perhaps some elements in Mongolia may be feeling the negative heat of their actions as foreign investment comes to a standstill and the GOM gets squeezed for funds. JMO ;-)
Turquoise Hill And Rio Tinto: Are They Good For Mongolia? [View article]
Another excellent article Emmet! The problem for Mongolia has been and continues to be the government of Mongolia. This deposit could have been in production for the past 3 years had it not been for the GOM's knee jerk reactions and continually changing regulations coupled with the high degree of corruption. They have a saying in Mongolia which goes something like "A friend in need is a friend in dead" The only problem is that the GOM is always in need. As for Russian or Chinese firms mining this deposit, IMO there would be significant technical difficulties that would have to be overcome. When it comes to mining technology, these two are far from best in the world and in order to be mined efficiently the underground part of the deposit requires that "block cave" mining be used. Not to many companies can do this efficiently. Rio is well experienced in dealing with different governments and I believe that their firm approach with the GOM is the way to proceed in this case. It will all work out in the end. JMO
Natural Gas: Sharp Recent Drop In Baker Hughes Gas Rig Count Explained [View article]
With respect to the statement
"The abrupt drop in the gas-directed category appears particularly puzzling, given the recent strength in spot natural gas prices and firmness of the futures curve which point to improving returns for natural gas drilling. Economic logic would seem to suggest an uptrend in natural gas rig count, not a mass exodus."
Not really as any sizable increase in drilling would quickly negatively impact the present and future price of natural gas. There is lots of gas in the ground - more than enough to satisfy growing demand and so the only thing keeping the price up is the slow down in drilling. All the operators are quite aware of this and so it makes no sense for them to move from oil to gas. Besides - even at $6 plus gas it is still more profitable to drill for oil. JMO
S&P 500 (SPY) futures -1.3% following the big miss for Nonfarm Payrolls. Treasury prices soar, the long bond up a full point and a half. TLT +2%. Crude oil tumbles, USO -1.5%, and gold flies, GLD +1%. [View news story]
You can blame "can't do Obama" for the current situation. Can't make a deal with the Republicans on the Fiscal cliff and spending cuts, can't approve Keystone, just can't do anything that would create jobs and move the economy forward. The "yes we can" that turned into the "no I can't".
Actually the American refineries would benefit from lower priced crude and if you look at ownership of the oil sands producers, you see a lot of American companies and American shareholders. As well you have all the construction jobs, pipeline taxes, land royalties and maintenance/ support jobs- these would be mostly flowing to Americans. As such you have a lot of Americans benefiting from Keystone.
Obama is delaying his decision - nothing new there as his reputation as the "can't do president" keeps growing. The bottom line is that pipeline transport (especially new lines built to the highest standards with the latest leak detection technology as Keystone would be) are by far the safest way to transport crude oil. The Pegasus line that leaked was a 65 year old line - old steel, old technology. People say Obama is looking to leave a legacy behind. Turning this pipeline down would leave him with the legacy of turning his back on America's closest ally, denying the American people energy self sufficiency, helping to provide China with increased energy suppliers at America's expense, and denying the American people of much needed high paying jobs.
General Motors (GM) and Ford (F) have joined together to develop nine- and 10-speed automatic transmissions as part of an effort to make their cars more efficient. The move represents the third time the car giants have teamed up in the last ten years to produce new transmissions. Ford and GM have their eyes on a 2025 deadline to develop cars with a fuel economy of 39 miles per gallon, or two thirds above the average for 2012 vehicles. [View news story]
A New Liquids-Rich Shale On The Rise: Important Data Points For Mancos-Niobrara [View article]
Environmental Decision: Natural Gas Transportation Or Keystone-XL? [View article]
Environmental Decision: Natural Gas Transportation Or Keystone-XL? [View article]
Barrick Gold Hits Glacier, Investors Must Heed Growing Sector Risks [View article]
The big winners with the current dip in gold prices will be the buyers - both of physical gold and gold equities. The biggest winner of the winners will more than likely be China - its no secret that they have trillions of U.S. dollars and that they would like to move out of a lot of that position and right now gold is on sale. Will it get cheaper - maybe but no doubt in my mind that it will also go a lot higher. Even if you ignore the political uncertainty, supply/ demand dictates a higher price just on the facts that the world is printing huge amounts of money and the growing middle class in places like China and India. JMO
Turquoise Hill Will Rise Again [View article]
Rio Tinto (RIO) is accelerating a plan to sell billions of dollars in non-core assets despite a slowdown in commodities that could lower the price tag on the deals. Latest to go on the block is the 57% stake in Ivanhoe Australia owned by unit Turquoise Hill Resources (TRQ), with a market value of ~$156M. RIO also has been trying to sell TRQ’s 58% stake in Mongolia-focused SouthGobi Resources. [View news story]
Turquoise Hill Will Rise Again [View article]
Turquoise Hill And Rio Tinto: Are They Good For Mongolia? [View article]
http://bit.ly/XE5Qce
I have copied part of the article below as well:
By Elizabeth Bryning
The other morning when I was reading the newspaper I came across an article that made me almost choke on my coffee. The article said that Mongolia had been ranked 15th among the top places in the world to visit in 2013. Now, don’t get me wrong, I certainly agree that Mongolia is one of the top places in the world to visit; it is definitely a country everyone should see, in any year. What made me splutter my coffee all over the newspaper was the reason given in the article for visiting Mongolia: its “untouched countryside.”
Untouched? Mongolia’s countryside described as “untouched?” I could only assume that the author of the article has never been here. It seems to me that the only explanation for the choice of the word “untouched” was because the author’s feet have never touched Mongolia’s soil.
I arrived in Mongolia several years ago and have been searching ever since for some “untouched” countryside. I have yet to find it.
There may be an “untouched” corner somewhere. I haven’t been everywhere. But describing the general countryside of this country as “untouched” is, well, “creative.”
The first thing you notice when you’re travelling in the Mongolian countryside is the number of tracks crisscrossing the steppe. There are sections of land that have so many tracks, side by side, that it resembles a ten-lane highway. This is not my idea of “untouched.”
Then you notice the many exposed patches on the steppe where the pasture has been grazed completely away and the top soil is eroding rapidly, throwing dust into your eyes as your four-wheel-drive bounces by. Nope, that doesn’t seem very “untouched” to me either.
And when you get out of your vehicle and walk around, you can barely go five paces without tripping over an empty vodka bottle, even in the most remote and unpopulated corners of the country. Hell no, that’s not “untouched.”
And the amount of plastic waste littering the steppe makes you think “rubbish tip,” not “untouched.”
Turquoise Hill And Rio Tinto: Are They Good For Mongolia? [View article]
Turquoise Hill And Rio Tinto: Are They Good For Mongolia? [View article]
The problem for Mongolia has been and continues to be the government of Mongolia. This deposit could have been in production for the past 3 years had it not been for the GOM's knee jerk reactions and continually changing regulations coupled with the high degree of corruption.
They have a saying in Mongolia which goes something like "A friend in need is a friend in dead" The only problem is that the GOM is always in need.
As for Russian or Chinese firms mining this deposit, IMO there would be significant technical difficulties that would have to be overcome. When it comes to mining technology, these two are far from best in the world and in order to be mined efficiently the underground part of the deposit requires that "block cave" mining be used. Not to many companies can do this efficiently.
Rio is well experienced in dealing with different governments and I believe that their firm approach with the GOM is the way to proceed in this case. It will all work out in the end. JMO
Natural Gas: Sharp Recent Drop In Baker Hughes Gas Rig Count Explained [View article]
"The abrupt drop in the gas-directed category appears particularly puzzling, given the recent strength in spot natural gas prices and firmness of the futures curve which point to improving returns for natural gas drilling. Economic logic would seem to suggest an uptrend in natural gas rig count, not a mass exodus."
Not really as any sizable increase in drilling would quickly negatively impact the present and future price of natural gas. There is lots of gas in the ground - more than enough to satisfy growing demand and so the only thing keeping the price up is the slow down in drilling. All the operators are quite aware of this and so it makes no sense for them to move from oil to gas. Besides - even at $6 plus gas it is still more profitable to drill for oil. JMO
S&P 500 (SPY) futures -1.3% following the big miss for Nonfarm Payrolls. Treasury prices soar, the long bond up a full point and a half. TLT +2%. Crude oil tumbles, USO -1.5%, and gold flies, GLD +1%. [View news story]
As Pres. Obama weighs approving the Keystone pipeline (TRP), a recent series of energy mishaps, including a spill in Arkansas from a pipeline owned by Exxon (XOM), aren't helping the pro-pipeline cause. The administration isn't saying how the spill is affecting its thinking. Yet a larger spill from a train in Minnesota last week drew little criticism, even as oil pipelines carry far more crude and have fewer leaks per mile. [View news story]
As Pres. Obama weighs approving the Keystone pipeline (TRP), a recent series of energy mishaps, including a spill in Arkansas from a pipeline owned by Exxon (XOM), aren't helping the pro-pipeline cause. The administration isn't saying how the spill is affecting its thinking. Yet a larger spill from a train in Minnesota last week drew little criticism, even as oil pipelines carry far more crude and have fewer leaks per mile. [View news story]