Energy Prospectus

Below is a link to our first ever weekly podcast. Check it out and let us know what you think.

https://www.youtube.com/watch?v=ZZ8iTd3 ... e=youtu.be

This is a feature we've wanted to add since the middle of last year, but it took this long to find software that was easy enough for me to use and generated a high quality recording.

As I point out in my podcast, expecting rebel groups to abide by a truce agreement is like expecting a 3 year-old to behave.
Most of the men in the rebel groups just like to kill people and blow up stuff. Nigeria, Libya, Venezuela and Angola are all in "meltdown mode" and only the Good Lord can change that.

Crude Oil: On 7/8/2016, Reuters reported that attackers blew up an oil pipeline in Nigeria's southern Bayelsa state operated by Eni (E-NC) sourcing a statement from the Nigeria Security and Civil Defense Corps (NSDC). The volume of crude oil affected was not mentioned; Eni could not be reached for comment and has not issued a press release.

Also in Nigeria, Reuters reported that Nigerian Petroleum Ministry sources said in late June that a month-long truce had been agreed with militants but a group called the Niger Delta Avengers, which has carried out most of the attacks, said it did not "remember" agreeing to a ceasefire.


Finally, Nigeria's state oil company on Friday urged motorists not to engage in panic petrol buying, a day after a trade union representing oil workers began a strike that raised fears of future fuel shortages. According to the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) website, there was total compliance by its approximately 10,000 members who embarked on an indefinite strike on 7/8/2016. Again, the volume of crude oil affected was not mentioned.

For the week ending 7/1/2016, U.S. crude oil inventories fell for a seventh consecutive week, according to the EIA.

Natural Gas: A number of factors continue to support natural gas prices. Wellhead production declines, planned and unplanned gas processing plants going offline, hotter than normal weather and nuclear generation outages. Enterprise’s (EPD-NC) Pascagoula processing plant remains down since a fire on 6/27/2016 and no return to service date has been announced. So far this summer has averaged about 10% hotter than normal and this continued last week, with 74 CDD against 71 CDD the prior week and 68 CDD normal. According to the U.S. Nuclear Regulatory Commission, nuclear power plant utilization during the second half of June was down 5% from unplanned outages and this could continue through July with several large nuclear plants still down. The Salem 1 plant is offline indefinitely, and other plants down or running on and off are Indian Point 2, Susquehanna 2, Millstone 3, Grand Gulf 1 and Cook 1.

Natural gas in storage: The EIA reported a build of 39 Bcf, slightly below the forecast build of 42 Bcf and below last year's build of 87 Bcf. U.S. working gas in storage is now at 3,179 Bcf, which is 23% above the five-year average of 2,580 Bcf, and 20% above last year's level of 2,641 Bcf. The 8-to-14 day weather forecast by NOAA/National Weather Service continues to call for hotter than normal temperatures for most of the Lower 48 U.S.

U.S. Rig Count: The U.S. rotary rig count from Baker Hughes (BHI-NC) was up 9 at 440 for the week of 7/8/2016. The number of rotary rigs drilling for oil was up 10 at 351. Rigs drilling for oil represent 80% of all drilling activity. Rigs directed toward natural gas were down 1 at 88.

Thx. Great idea.

Well done.

The podcast will be limited to about 10 minutes because the file gets too big if I run over that time. I will focus on 1 or 2 points each week.

Thanks Dan,
Looked good!!