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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (174202)	11/17/2012 5:50:50 PM
From: upanddown	4 Recommendations Read Replies (1) \| Respond to of 206183

Paul I always enjoy these comical discussions about the evils of California. Gosh, if it wasn't for those Hollywood liberals and San Francisco gays and all those weirdo Democratic politicians in Sacramento, the Monterey Shale would probably be putting out at least a million barrels a day. It's not that simple (minded). I live nearby on the central coast. About a year ago, I run into this guy on the local golf course. This was after the EIA report stating that the Monterey had almost 4X the crude in the Bakken or the Eagle Ford. He turns out to be a petroleum engineer from PXP, which has a position in the Monterey. I try to get some info from him about the Monterey. He's surprised I had heard of it and really doesn't say much. He did say that it has been a "tough nut to crack". I asked him if they were being blocked by lawsuits or permitting and he says "no, no, it is strictly the technical problem of how to produce the field economically". He seemed to be optimistic that they would eventually figure it out. Water could be a problem in such a semi-arid area and the oil companies may have more problems battling with conservative landowners over water rights than with the Sierra Club. Who cares about renewables goals? With PADD 5 importing 1.5MMBD, there is plenty of room for renewables and increased onshore in CA. PADD 5 has not had the import decrease seen in PADD 1 (east coast) and PADD 3 (gulf coast) because they have no access to new production from the Bakken and Eagle Ford. I've also been following OXY for the same reasons. A good value at these prices even without the Monterey kicker. Rather than straight stock, I'm looking at the Feb 72.50 puts at 3.75/3.80. Current price 73.81 and break even at 68.75 with the puts. Miss the Dec div but catch the Mar div if I get assigned. John