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Industry News February 26 2015

by charlie on March 2, 2015

Industry News

This is a good article explaining why it’s not just the rig count that is indicative of where the industry is at. The number of wells awaiting completion is now becoming significant as companies defer the associated costs and hold off on losing out on higher profits from the flush production. Read more here

If we are to believe the reason for the drop in oil prices being a supply and demand imbalance, then this article by the American Petroleum Institute (API) must surely have some people scratching their heads. By all accounts, January 2015 seemed to be a record month for demand, production, decreased foreign import and increased input into domestic refineries. Read here

ExxonMobil, the worlds largest publicly traded oil company claims to have replaced 104% of its 2014 reserves output from additions including the Permian Basin and Kearl oil sands in Canada. Full article

The Unites Steelworkers Union (USW) has launched additional work stoppages at the largest refinery in the US and three other facilities as part of their unfair labor practice strike. Read more

Investing Views

I have long been a big supporter of the somewhat controversial financial educator Robert Kiyosaki and came across this video yesterday. While promoting his new book ‘Second Chance’ he makes clear reference as to why he buys into oil and gas programs. Quite simply for the tax benefits. Hence he is not concerned with the current temporary drop in oil price.

A long time advocate of investing outside of the stock market in he is even predicting a stock market crash in 2016. This 18 minute video has some good points. For those of you on a time squeeze, you can skip to 16.55 about his oil and gas comments. Watch video here

Company News

EOG Resources have cut their budget by 40% compared to last year down to approx $5 Billion for 2015. Read here

Noble Energy’s budget is also down 40% for 2015. Investment in US onshore unconventional plays is planned at $1.8 billion, split evenly between the DJ basin and Marcellus shale. Noble says it will focus on increasing recovery in both areas through the application of long laterals and modified completion techniques. Full article

Environmental News

A U.S. judge on Thursday rejected BP Plc’s attempt to reduce the maximum civil fine it could face for its role in the 2010 Gulf of Mexico oil spill, leaving it potentially liable to pay $13.7 billion under the federal Clean Water Act. Read More

Market News

Warren Buffett’s Berkshire Hathaway Inc. sold its entire position in Exxon during the final three months of last year, according to a regulatory filing on Tuesday. The exit marks the end of a $3.7 billion investment in 2013 that at the time was Buffett’s biggest single bet since he bought into International Business Machines Corp. two years earlier. Full article

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