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gdonelson

gdonelson
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  • U.S. firms take new Puerto Rico law to court [View news story]
    An island with no oil or gas resources that has 60-80 year old bunker fuel burning baseload power under a state monopolized structure with entrenched unions and pensions is a recipe for energy high prices. With half the population on welfare that should be enough of a voting block to make political change. Question is who would be leading the new political power and to where? What are your solutions to the problems?
    Jul 1, 2014. 12:05 AM | 1 Like Like |Link to Comment
  • The backlash is growing against Freeport McMoRan's (FCX) planned acquisition of two oil explorers, as T. Rowe Price and Van Eck - who hold at least 9% of shares - say the tie-up is riddled with conflicts of interest. BlackRock's Evy Hambro, who ripped the deal early, continues to weigh in: He's most upset at the lack of a shareholder vote on a transaction that equals two-thirds of FCX's market cap. [View news story]
    FCX did pretty well with the acquisition of Phelps Dodge. As I recall they reduced the acquisition debt to nearly zero in 2-3 years. Perhaps there just aren't any copper/gold projects which are large enough, with high quality ore in stable geographic regions that they feel comfortable purchasing. Hence the diversification into US O&G. Just a thought.
    Dec 12, 2012. 10:01 AM | Likes Like |Link to Comment
  • Several hedge funds, including the one run by John Paulson, and mutual fund firm Franklin Resources (BEN) are among foreign investors betting Canada will approve Cnooc's (CEO) takeover bid from Nexen (NXY) after all bought shares in NXY during Q3. The growing consensus: ‘‘The Canadian government wants to be seen as open to deals and business. It is not in their interest to say no.’’ [View news story]
    John, don't you mean "It is not in YOUR interest to say no."
    Nov 19, 2012. 01:32 PM | Likes Like |Link to Comment
  • Neil Beveridge and skeptical colleagues at Bernstein Research remain unmoved by the IEA’s forecasts that U.S. oil production soon will overtake Saudi Arabia. Bernstein believes the U.S. will produce ~10.5M bbl/day by 2015, comparable to Saudi production but only for a brief period; it sees U.S. production dropping off to 9M by 2020 while the IEA expects U.S. liquids production to keep growing. [View news story]
    Thanks Neil! As always from Bernstein...rational, non-politicized analysis.
    Nov 19, 2012. 01:29 PM | Likes Like |Link to Comment
  • P-E firm Sun Capital has set its sights on Hostess Brands, according to reports. The plan would involve reopening factories and keeping well-known brands such as Twinkies, Ding Dongs, and Wonder Bread under the Hostess banner. Co-CEO Marc Leder doesn't buy into the notion the bankrupt firm's products are off-trend, noting consumers is still strong. [View news story]
    Imperative to keep the low nutritional, high fructose corn sugar, hydrogenated protein content foods available in order to support the business models of all the companies catering to weight-loss and diabetes treatment.
    Nov 19, 2012. 01:21 PM | Likes Like |Link to Comment
  • The San Diego Union-Tribune calls on California Gov. Jerry Brown to tap the state's huge shale oil resources; the Monterrey formation is believed to contain 15.4B barrels of recoverable crude, four times as much as North Dakota's Bakken. But California has committed to getting a third of its energy from renewable sources by 2020, and risks getting left behind as the rest of the world digs into shale. [View news story]
    Completely agree! And $200 per barrel will crush demand and economies so again CA shale plays are a non-starter.
    Nov 17, 2012. 10:26 AM | Likes Like |Link to Comment
  • The San Diego Union-Tribune calls on California Gov. Jerry Brown to tap the state's huge shale oil resources; the Monterrey formation is believed to contain 15.4B barrels of recoverable crude, four times as much as North Dakota's Bakken. But California has committed to getting a third of its energy from renewable sources by 2020, and risks getting left behind as the rest of the world digs into shale. [View news story]
    I can attest to having the same experience with the union connection to the permitting process. Our firms will NEVER again invest or do business in CA under the present system. To many other places where there are able and willing workers, effective and efficient permitting authorities and much lower tax rates. I wish them the best but not on our dime.
    Nov 17, 2012. 10:24 AM | 2 Likes Like |Link to Comment
  • California has opened the world’s second-largest auction for permits to release greenhouse gases, the first test of a program that aims to reduce emissions while raising billions of dollars for the state. The auctions are expected to generate $1B in the first year, and $2.8B-$11B/year by 2015. [View news story]
    Weren't they relying on a big tax windfall from all the new Facebook billionaires to close the gap?
    Nov 16, 2012. 09:53 AM | Likes Like |Link to Comment
  • The U.S. will surpass Saudi Arabia and Russia to become the world's largest oil producer by 2017 and become "all but (energy) self-sufficient" by 2030, the IEA predicts in its annual World Energy Outlook. The forecast highlights how the U.S. shale revolution is changing the energy sector, although analysts warn that the nature of shale production means that the growth the IEA predicts isn't guaranteed. [View news story]
    That 'pie' is so high in the sky that the Hubble Deep Space Telescope can't even see it. I suspect that if someone used all the variables in the IEA report to determine probability outcome the chance of this prediction coming true is one millionth of one percent. Perhaps less. Great fodder for the MSM though!
    Nov 12, 2012. 11:38 AM | 2 Likes Like |Link to Comment
  • An arm of Sinopec (SNP) plans to build an advanced facility in the unlikely location of Medicine Bow, Wyo., in the next phase of China's advance into the U.S. energy market. SNP brings to the potentially expensive and complicated project of converting coal into gasoline less pricey Chinese components and materials, and may be the forefront of a bigger U.S. engineering push by Chinese companies. [View news story]
    A little curious as to why Sinopec needs to come to the US to do this project especially since China has some of the largest coal reserves of anywhere in the world. For a number of reasons wouldn't it be a better project in China?
    Nov 6, 2012. 01:08 PM | 2 Likes Like |Link to Comment
  • Too much regulation is standing in the way of natural gas development and in turn America's energy future, and removing barriers is just as critical as resolving the fiscal cliff, Jack Welch tells CNBC: "We have a chance in this country to make this the American century. This gas thing is huge. The gas that we have found is in the first inning - it's like the Internet in 1990." [View news story]
    Unless there is a profit from drilling Jack's vision goes no where. Nat Gas prices need to be between $4-5 just for producers to break even in the shales.
    Nov 5, 2012. 12:01 PM | Likes Like |Link to Comment
  • A123 Systems (AONE +54.6%) soars to a lofty $0.19 after China's Wanxiang Group files a 13-D waiving any right to exercise warrants to purchase A123 shares, or otherwise go through with its cancelled financing deal. Last week, Wanxiang said it still wants to acquire bankrupt A123, and announced plans to outbid Johnson Controls for A123's battery business. (also[View news story]
    You've got to be kidding....Apples and walnuts. RE (hard assets) vs a loser technology that can't get any scale up results from benchtop demonstration due to the laws of thermodynamics? Entirely way to much risk for me.
    Oct 23, 2012. 10:08 AM | Likes Like |Link to Comment
  • The Obama administration delays a decision on whether to prevent a liquefied natural gas export license for Cheniere Energy (LNG), saying it needs more time to review a complaint that an environmental assessment did not go far enough. LNG's Sabine Pass is the only project so far to receive conditional Energy Department approval to export to countries without free-trade agreements. [View news story]
    "Tell Mr. Putin I'll have a lot more flexibility after my re-election"
    Oct 18, 2012. 11:23 AM | 1 Like Like |Link to Comment
  • Sec. of State Hillary Clinton will argue today that energy is a centerpiece of U.S. foreign policy, with the aim of "ensuring that countries don’t use their energy resources, or proximity to transit routes, to force others to bend to their will." This comes as the IEA estimates a sharp fall in global crude trade by 2017, which would have ramifications for how those energy-producing countries view their resources. [View news story]
    US has no comprehensive energy policy either short or long term. And then to tell another sovereign country how to use their own resources? Is the proxy war developing in Syria also a tenant of this "energy is a centerpiece of U.S. foreign policy"?
    Oct 18, 2012. 11:19 AM | 1 Like Like |Link to Comment
  • The Obama administration delays a decision on whether to prevent a liquefied natural gas export license for Cheniere Energy (LNG), saying it needs more time to review a complaint that an environmental assessment did not go far enough. LNG's Sabine Pass is the only project so far to receive conditional Energy Department approval to export to countries without free-trade agreements. [View news story]
    Bingo! Higher prices are the only thing which will keep what momentum is left behind Nat Gas exploration.
    Oct 17, 2012. 02:45 PM | Likes Like |Link to Comment
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