This column highlights the most interesting and useful business and financial commentary on energy from around the Web.
San Francisco Times
Link: Chevron Corp. Inks Exploration Deals Off China Coast
“Oil and gas giant Chevron Corp.
(NYSE:CVX) made deals to explore parts of the South China Sea.
“San Ramon-based Chevron made the deals via a subsidiary to work with China National Offshore Oil Corp., or CNOOC in the Pearl River Mouth Basin.”
Link: Exxon Mobil Corporation, Seadrill Ltd: Is Arctic Drilling a Boom or Bust Proposition?
(NYSE:RDS.A) found out the hardships of arctic drilling when its Killuk oil rig broke free of the tugboats that were hauling it to Seattle for maintenance on New Year's Eve and crashed into a deserted island. This isn't the first challenge Shell has faced and it may be a warning sign for others. Noble Corporation's
(NYSE:NE) Discoverer nearly ran aground in July. Just transporting rigs to the Arctic is a difficult task.”
Link: Chesapeake Energy in 2013 (Part 2): Underlying Assets Imply Substantial Future Returns
“Back in October, I suggested
traders of natural gas futures contracts and shorter-term owners of natural gas related equities take profits given an underwhelming demand outlook and surprisingly relentless gas production. At the time, the January contract was trading at about $4, while the February 13 contract traded between $3.50 and $3.70. My thesis has played out reasonably well, as record supply had yet to be liquidated and expected demand on the part of utilities hadn't been met.”
“A few months later, major producers like Chesapeake
(NYSE:CHK) finally seem to be bringing less gas to market, and focusing more heavily on liquids production.”
The Oil Drum
Link: Oil Watch: Reconciliation of JODI and EIA C+C Production Data
“Oil production and consumption data reported by JODI (Joint Organizations Data Initiative) is reported to JODI by national governments giving us reason to believe that this may be the most reliable data set upon which to base interpretations about national and global oil supply and demand. However, the JODI data set is incomplete…”
“The IEA (International Energy Agency) and BP
(NYSE:BP) do not report C+C separately and so cannot be compared to the EIA and JODI (corrected) C+C data. However, there is good alignment between EIA, IEA and BP for C+C+NGL since January 2002 although the IEA data is currently >2 million bpd higher than the EIA and this reporting gap will one day need to be closed (Figure 2).
Link: First Solar, Now China Wind Power in Washington's Crosshairs
“China wants to become a leader in alternative sources of energy, both as an end user and product developer. But its biggest obstacle these days is not its own government, or cheaper competition from coal. It’s Washington DC.
“Last year, President Obama slapped tariffs on China solar panel makers deemed to be undercutting their American rivals with cheaper goods.
(NYSE:TSL) went from nearly $700 million in market cap last year to $400 million currently. The company’s shares have fallen by more than 40 percent. By comparison, Tempe, Arizona-based First Solar
(NYSE:FSLR) shares fell by 23 percent over the last 12 months.”
No positions in stocks mentioned.