Oil Tightness Obscured
We believe supply-driven tightness in crude has been masked by investor macro concerns relating to demand, as well as the recent weather-impacted rise in US oil inventories. In our view, the magnitude of these supply factors more than offsets potential demand slippage...
Consolidation: The Time is Now
Today, Chevron (NYSE: CVX) announced they plan to acquire Anadarko Petroleum (NYSE: APC). We saw many corporate deals struck last year (Concho/RSP Permian, Diamondback/Energen, Encana/Newfield, etc.) and have expected sector consolidation to continue in 2019 as oil...
Oil Equities: The Catch-Up Trade and Then Some
Oil has been on the move. Oil equities, however, not so much. Naturally, the performance of stocks and commodities can deviate at times as they are generally influenced by various idiosyncratic and sector-specific factors. Still, any sustained disconnect between oil...The Evolving Energy Business Model: A Transformational Change from “Drill-Baby-Drill” to “Show Me The Money”
Over the past decade, exploration and production companies (“producers”) have been in a land grab battle as shale oil resources (“shale oil plays”) have emerged across the United States. Starting in 2009, the Bakken Shale in North Dakota emerged, followed by several...