The Strongest Jackup Play: Hercules Offshore
November 10, 2008
As a younger investor, I am extremely interested in many of the smaller companies because of their potential for extremely high returns. Obviously these returns come with much higher risks, but for young investors it is generally more prudent to take these types of risks when you have your whole life ahead of you and you are not trying to save. Hercules Offshore [HERO: 4.86, -0.71 (-12.75%)] is a company that fits this description perfectly due to their outstanding fundamentals and growth prospects as well as their track record Read more
Big Profits for Big Oil Continues with Devon
November 5, 2008
The Oklahoma City based oil and gas giant Devon Energy Corp. [DVN: 67.93, -6.07 (-8.20%)] reported a 256% increase in net earnings this morning, continuing the trend of large U.S. oil companies posting record profits amid a recession-fearing market. As much of the stock market continues to shed market value and the lowering of earnings estimates becomes common place, the likes of Devon, Exxon Mobil [XOM: 68.93, -3.72 (-5.12%)], and Chevron [CVX: 67.28, -6.26 (-8.51%)] are Read more
Fundamentals of Crude Oil Pricing: Part V
November 4, 2008
If you have not read parts one the earlier parts of this article, please visit Part One, Part Two, Part Three, and Part Four.
Fear and Uncertainty
Fear and uncertainty and the worst enemy of a financial market, and, if you turn on the television, it is easy to see why this is the case and how it can affect the world financial markets. Within the crude oil markets, fear and panic can cause a severe move in either direction. During this current credit crunch and liquidity crisis, we have seen crude oil drop Read more
Fundamentals of Crude Oil Pricing: Part IV
November 2, 2008
If you have not read parts one through three of this article, please visit the following pages for Part One, Part Two, and Part Three respectively.
Refiners and the Crack Spread
The general misconception that the demand of crude oil is that it comes directly from “whoever pulls it out of the ground to their cars.” Unfortunately this is flawed thinking as they neglect many steps in between the first and last steps. The refiners are the ones who actually control the demand of crude oil, not the consumers. Their demand for the most part is Read more
Chevron Profits Soar on Record Oil
October 31, 2008
Chevron Corp. [CVX: 67.28, -6.26 (-8.51%)] reported net income of $7.9 billion and diluted earnings of $3.85 per share, up from $3.7 billion and $1.75 per share from the same quarter last year. Rising oil and natural gas prices during the quarter helped to boost sales and other operating revenues 41% from a year ago to $76 billion. These numbers are on the heels of Exxon Mobile’s [XOM: 68.93, -3.72 (-5.12%)] record setting profits reported yesterday. Analysts had expected the second-largest U.S. oil company to report a net profit of Read more
Fundamentals of Crude Oil Pricing: Part III
October 31, 2008
If you have not read parts earlier parts of this article please visit Part One and Part Two.
Shortages, Stockpiles, and Decline Rates
Often one of the most important short-term pricing factors in regards to crude oil are shortages and stockpiles. These dynamics work in ways that are mysterious to most investors and misunderstood by many others. It is easy Read more
Fundamentals of Crude Oil Pricing: Part II
October 29, 2008
If you have not read the first part of this article, please go visit it here.
OPEC
The Organization of Petroleum Exporting Countries (commonly referred to as OPEC) is the world’s largest cartel. It consists of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has control of roughly two-thirds of the world’s oil reserves and 35% of the world’s crude production (these numbers do not include tar sands and other unconventional forms of hydrocarbons). OPEC collectively places production quotas on its nations Read more
Fundamentals of Crude Oil Pricing: Part I
October 27, 2008
Without a doubt, crude oil has been the commodity with the most buzz surrounding it over the last three years. Every investor and analyst (especially those geniuses on CNBC) has an explanation for every single move, but more often than not they are either misinformed or lying. The importance of crude oil to our world financial markets is very important; it affects everything from companies’ transportation costs to consumer behavior and spending habits. Being able to predict the future price or price movements would be an invaluable skill, but the question is how would an investor even go about this? I believe the basis of this unattainable skill is influenced by a wide number of factors. Read more
Untapped Potential: Southwestern Energy
October 22, 2008
Warning: If you don’t like to read about moderately speculative high growth stocks in a volatile sector, I recommend turning around and checking out another article about a “safe” stock (I doubt there is such a thing as a safe stock in this market). Many investors are worried about their equity holdings right now but prudent investors should be gearing up to open new positions. A wise investor named Read more
Impressive Earnings From Schlumberger
October 19, 2008
Friday before the opening bell Schlumberger Ltd. [SLB: 44.99, -3.65 (-7.50%)] announced their third quarter 2008 earnings results, and they were promising to say the least. Here is a look at the numbers compared to the other relevant quarters Read more
 
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