Crude oil prices are hanging tough in the $93/bbl range despite a somewhat bearish EIA inventory report on Wednesday. Corporate earnings and signs the economy improving trumped the inventory report. Every day we stay over $90/bbl gives me more confidence in my 2013 forecast models.
CLR, EOG and HP moved higher as investors seem to prefer the larger companies for safety. CLR should report a very strong year-end reserve report. Year-over-year production growth over 58% is an incredible growth rate for a company of this size. OAS and WLL are other large-cap Bakken companies that look very strong to me.
I just posted a new portfolio on one of my favorite MLPs, Holly Energy Partners, LP. (HEP). They have increased distributions to unitholders for 32 consecutive quarters and I see that trend continuing.
We had a great luncheon in Houston yesterday with record attendance over 125. Gary Evans, CEO of Magnum Hunter and GreenHunter Energy draws a crowd. He was impressed with the quality of our group. I hope to get MHR back to host a luncheon for us in a few months.
The weather forecast for next week looks bullish for natural gas. This could be one of the biggest outbreaks of cold we've seen in the U.S. in several years. I am expecting another triple digit draw from NG storage but we need a few weeks over -200 bcf to really draw some attention. Check out the forecast map at the link below.
http://www.wunderground.com/ndfdimage/v ... mint&msg=6
The offshore drillers are looking a lot better than they did a year ago. I will be working on Ensco tomorrow and hope to complete the profile by this weekend. Take a look at our Drillers Watch List when you have time.
January 9th Blog
January 9th Blog
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: January 9th Blog
Global crude oil consumption will increase 0.9 million barrels per day to record levels in 2013
according to the latest International Energy Agency report. Global demand will be 90.5 million
barrels per day, with China accounting for roughly one-half of the global demand growth. China’s oil
demand hit the highest level on record in November – 10.5 million barrels per day according to
Platt’s – and demand is expected to continue to set records in 2013.
Brent crude oil will average $110 per barrel in 2013 according to the consensus forecast of 30
analysts compiled by Bloomberg, the third year in a row it will trade in triple digits.
Any improvement in Europe and/or U.S. economy and demand for oil will go even higher that the IEA estimate.
according to the latest International Energy Agency report. Global demand will be 90.5 million
barrels per day, with China accounting for roughly one-half of the global demand growth. China’s oil
demand hit the highest level on record in November – 10.5 million barrels per day according to
Platt’s – and demand is expected to continue to set records in 2013.
Brent crude oil will average $110 per barrel in 2013 according to the consensus forecast of 30
analysts compiled by Bloomberg, the third year in a row it will trade in triple digits.
Any improvement in Europe and/or U.S. economy and demand for oil will go even higher that the IEA estimate.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group