Energy Prospectus

We just keep printing money and running up debt with no end in sight. Gold & Oil are the world's most actively traded commodities. Both are seen as hedges against inflation and the falling U.S. dollar. - Dan

From CME Group: "December Crude Oil prices took on a higher track during the overnight and early morning hours, helped by Chinese economic data overnight that showed inline growth, as well as a new contract high in the S&P 500. Some traders suggested that an added element of support came on prospects that the US Fed might delay a decision to taper monthly asset purchases until the impact of the government shut is better understood. This continued injection of liquidity into financial markets is seen as a source of support and has stoked risk-taking sentiment. Additionally, crude garners a lift this morning from a breakdown in the US dollar to a new low for the decline."

China now consumes more energy than the U.S. They are on-track to more than double our energy consumption by 2035. China will take every ounce of oil they can get, so demand for oil will equal supply unless there is a significant decline in the Chinese economy.

Crude over supply in the Gulf has developed rapidly affecting producers like EXXI and refiners.
http://www.rbnenergy.com/goodbye-strang ... aths-again

Keep in mind that EXXI sells their oil at Brent and their gas sells at a premium to NYMEX prices.

i've seen reports that the LLS has been leaning toward wti vs brent.

I have learned not to make long-term investment decisions based on short-term movements in commodity prices. There is very strong support for WTI at $96 and VERY STRONG support for Brent at $100/bbl. OPEC has said many times that they believe $100/bbl is a "fair price" for their oil. OPEC controls the Brent price.

LLC may be trending with WTI today but Gulf Coast oil competes directly with imports, not with WTI.

The 36 inch lower Keystone pipeline to carry oil from Cushing Ok to Gulf coast refineries is nearing completion. People say the WTI will equate to the Brent near end of year

Southern Leg of Keystone XL Near Completion as Opponents Lose Last Legal Battle in Texas
Carol Berry
10/23/13

American Indians and others who oppose the southern leg of the Keystone XL pipeline have lost their last legal battle, enabling TransCanada to finish the project by year’s end.

While the northern part of the Keystone XL pipeline has been held up by controversy, the protests against the southern portion, known as the Gulf Coast Pipeline, have been to no avail. On October 9 a split federal appeals court upheld a lower court’s refusal to stop the pipeline’s construction because an injunction to stop construction, which is what the opponents sought, “would cost [TransCanada] at least hundreds of thousands of dollars per day,” the U.S. Tenth Circuit Court of Appeals said in its ruling.

RELATED: Actress Daryl Hannah Arrested Protesting Keystone XL in Texas

New York Times Journalists Threatened With Arrest While Reporting on Keystone XL Opposition

TransCanada has already spent at least $500 million on the 485-mile pipeline, which is expected to transport 700,000 gallons of crude oil daily from Cushing, in central Oklahoma, to Gulf Coast refineries.

The controversial Keystone XL extends through Sac and Fox territory. Other Oklahoma tribes that have spoken out about the pipeline’s impact on tribal patrimony include the Caddo, Choctaw, Southern Ponca and Pawnee, though none is party to the lawsuit.

The southern XL extension was formerly part of the full TransCanada XL pipeline, traversing some 1,700 miles of western and Midwestern states in its transnational route from Canadian tar sands, but vigorous opposition from Indian people, especially in northern areas, has delayed approval of the full section. The northern part must be approved by the U.S. Department of State, because it crosses an international line between Canada and the United States. The southern leg, purely domestic, was able to go ahead, despite a lack of thorough environmental reviews.

The Sierra Club and other plaintiffs had sought an injunction against the U.S. Army Corps of Engineers, which had signed off on numerous permits so that TransCanada could move ahead. TransCanada proceeded even though the Corps had to issue 2,227 permits for water crossings, with minimal environmental review.

“Considering the number of permits issued by the Corps relative to the overall size of the Gulf Coast Pipeline, it is patently ludicrous for appellees to characterize the Corps’ involvement in the subject project as minimal, or to maintain that the Corps’ permitting involves only a ‘link’ in the Gulf Coast Pipeline,” said dissenting District Judge William Martinez in the October 9 Tenth Circuit ruling.

Read more at http://indiancountrytodaymedianetwork.c ... xas-151887