Good perspective on Crude here - demand may not quite be what we think it is; I hope OPEC does not get complacent on demand propelling them, if they ease production here. Japan just had the worlds largest cash infusion and will only have 1% GDP - Bull; some of the other Asian nations are strong - Korea is a monster etc, but JAPAN still is Asian demand... these comments on Central Bankers slowing growth are a factor. - this is good news; IF OPEC is listening - as this is a prime reason NOT to ease here. I am not sold that demand is as strong as many think.
read:http://quote.bloomberg.com/news2.cgi?T=energy_topnews.ht&s=76067797
Major's & Integrated's and super Independants look really cheap - Unocal news etc.- look at Unocals chart:
2/9 16:15 Unocal Finds Huge Natural Gas Field Off Indonesia By David Wells
Unocal Finds Huge Natural Gas Field Off Indonesia (Update1)
El Segundo, California, Feb. 9 (Bloomberg) -- Unocal Corp.
said it found a deep-water field off Indonesia that may hold as
much as 3 trillion cubic feet of natural gas.
==================================================================
Or, how about Phillips - check out their chart & this news:
Bartlesville, Oklahoma, Feb. 9 (Bloomberg) -- Phillips
Petroleum Co., the sixth-biggest U.S. oil company, said it might
spend some of the $2 billion it plans to raise from two new joint
ventures to acquire fields and buy back shares.
The company said Monday the money first will go toward
cutting its debt to-capital ratio to 31 percent from 45 percent.
Phillips and Chevron Corp. agreed Monday to combine their
chemical businesses, which would give Phillips $800 million in
cash. The company said in December it is forming a natural gas-
processing venture with Duke Energy Corp. that would raise
$1.2 billion.
====================================================================
Here's food for thought: - profit...
Gas Explorers Need to Focus on Profit, Shackouls Says (
, Feb. 9 (Bloomberg) -- Natural gas-exploration
companies need to focus on profit, rather than finding more
reserves, to boost their lagging stocks, Burlington Resources Inc.
Chief Executive Bobby Shackouls said.
Industry studies project that U.S. gas demand in a decade
will be more than 30 percent higher than in 1998, Shackouls said.
Companies will need $1.5 trillion in the next 15 years to
extract enough gas to meet demand, and they'll need to get
financing from capital markets. Yet the Standard & Poor's index of
U.S.-based oil and gas exploration companies fell 34 percent in
the last three years, while the S&P 500 index rose 98 percent.
``Investor sentiment toward the exploration and production
industry is at an all-time low,' Shackouls said at Cambridge
Energy Research Associates' annual conference in Houston.
``Earnings do matter. There's been a huge lack of financial
discipline in our industry.'
Exploration companies need to enter into projects more
selectively if the industry is to keep up with rising demand,
Shackouls said.
``We've been measured on our ability to grow volumes, not
make money,' he said. ``Now, foremost on investors' minds is,
`what is your return on capital?'
The shares of Houston-based Burlington fell 1 7/16 to 29 1/4
on the New York Stock Exchange.
=======================================================================
He just told us what sentiment was and to focus on profitable E&P's...
a wake up call folks. The big caps & majors and Integrateds could become THE play. |
