~LTG

Comment by Jim Campbell

In case you missed it Wild Bill put forth a very credible plan to take back our schools and educate the “dumb voter.” It can be found about three posts down.

Now he will explain to you why the Eco-Nazi’s  won’t let us drill while at the same time Alberta, Canada has a pipeline ready to tap that would create 100,000  of jobs in America as the pipelines would go to Texas and another directly to the Pacific Coast. for immediate shipment to China.  China has already put up $5 billion but the bill sits on Obama’s desk as politics from the left trump national security.

If one didn’t know better they might believe that this administration is against fossil fuel of any type.  They prefer to tilt at green windmills, light bulbs and solar panels all providing good jobs in China. 

We are always trying to keep our readers as up to date as possible, with the latest and greatest energy stock picks. T. Boone Pickens recently stated his favorite picks for the upcoming months. Some of these are repeats from the last article we posted, so we have narrowed down new picks. Investment Underground has done great due diligence, check out the research on our favorites.

Canadian Natural Resources (CNQ) is engaged in acquiring, exploring, developing, producing, marketing and selling of crude oil. The North Sea, offshore West Africa and Western Canada are the main locations for the company’s operations. The P/E ratio for the company is 46.02, and dividend yield being 0.84. the stock last traded at 43.76, above the 50 and 200 day moving averages.

The company is heavily tied to oil prices and after a brutal Q1, the company believes that the forward outlook is in agreement with the bottom reached so far. Forest fires in May did not help the bottom line and with the Alberta agreement and Horizon Oil sands in our midst, the bottom does appear to be a thing of the past.

Murphy Oil Corporation (MUR) primarily operates as a holding company operating businesses in oil and gas exploration company. It is also involved in the refining and marketing of crude oil. The current stock price for Murphy is $69.71, whereas its 52 week bracket is $48.14 to $78.16 with P/E ratio and dividend yield being 14.70 & 1.58 respectively.

The stock is currently looking oversold on RSI and the moving averages look like they are flattening out or falling. However, the company is ‘refocusing’ on upstream business, which will benefit from high oil prices. The exit from loss-making refining should help the company stay on course with earnings, which took a positive turn for the first time since Jun 2010.

The Canadian oil sands are beginning to see some action recently, and if that is an area of the energy sector you are looking to explore, CNQ could be a great option. In addition, MUR is refocusing, which could potential mean good things for their stock holders. Each of these new picks from T.Boone are solid, and worth a second look.

Quote taken from report by Investment Underground, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

There has been talk about Canada’s oil supply with the oil sands, and its relationship with the U.S. The discussion has surrounded the idea that if the U.S. doesn’t create appropriate transit for the oil, China may step in and take advantage. Well, it looks like that prediction may have been correct. Paul Ausick has an update on the current relationship between China and the Canadian oil sands.

…This time its Cnooc Ltd. (NYSE: CEO) putting out about $2.1 billion for Toronto-traded Canadian oil sands developer Opti Canada. In addition to about $2 billion in debt, Cnooc is getting 195 million barrels of proved reserves and another 535 million barrels of probable reserves.

This is the largest deal in the oil sands since last year’s acquisition by China Petroleum & Chemical Corp. (NYSE: SNP), or Sinopec, of the oil sands assets of ConocoPhillips Corp. (NYSE: COP) for $4.65 billion. Cnooc expects the deal to close by the end of this year, assuming regulatory approvals and an acceptance by two-thirds of Opti’s creditors. So far about 55% of noteholders have approved the deal…

…Cnooc already owns a nearly 17% stake in oil sands developer MEG Energy Ltd. which it bought more than six years ago. When completed, this project could produce up to 500,000 barrels/day of crude.

Sinopec owns the 9% stake in the Syncrude project that it bought from Conoco, as well as a 50% stake in the stalled Northern Lights project that it shares with Total SA. Another big Chinese oil company, PetroChina Co. Ltd. (NYSE: PTR), owns a 60% stake in two properties held by Athabasca Oil Sands Corp.

China’s large oil companies have invested heavily in projects based in Africa, South America, and North America, including two deals between Cnooc and Chesapeake Energy Corp. (NYSE: CHK) which give Cnooc a stake in two large shale gas projects in the US…

China has officially entered into the Canadian oil sands business. These Chinese companies are making large acquisitions which would potentially impact the markets. Wheeling and dealing is the name of the game, and the Chinese do it well.

Quotes taken from report by Paul Ausick, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

The media has been telling us that the recession has ended, and we are now moving upward to bigger and better things. Despite this hopeful outlook, we have yet to see any major changes in the economic status of our country. Why not prepare your portfolio if the economy takes another down turn. You can never be too prepared, and Parsimony Investment Research believe that these are the energy stocks to steer clear of if this occurs.

Anadarko Petroleum Corporation (APC) engages in the exploration and production of oil and gas properties primarily in the United States, the deepwater of the Gulf of Mexico, and Algeria. It markets natural gas, crude oil, condensate, and oil and natural gas liquids (NGLs), as well as owns and operates natural-gas gathering, processing, treating, and transportation systems.

Baker Hughes Incorporated (BHI) supplies wellbore related products, and technology services and systems for drilling, formation evaluation, completion and production, and reservoir technology and consulting to the oil and natural gas industry worldwide. It also provides products and services to the downstream refining, and process and pipeline industries.

Cabot Oil & Gas Corporation (COG) operates as an independent oil and gas company in the United States. The company engages in the development, exploitation, exploration, production, and marketing of natural gas, crude oil, and natural gas liquids. It holds reserves in north region comprising Appalachian and Rocky Mountains areas; and south region consisting of Anadarko basin with Texas and Louisiana areas. The company also transports, stores, gathers, and purchases natural gas for resale.

Halliburton Company (HAL) provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. It operates in two segments, completion and production, and drilling and evaluation.

Helmerich & Payne, Inc. (HP) engages in the contract drilling of oil and gas wells in the United States and internationally. The company provides drilling rigs, equipment, personnel, and camps on a contract basis to explore for and develop oil and gas from onshore areas and from fixed platforms, tension-leg platforms, and spars in offshore areas.

National Oilwell Varco, Inc. (NOV) designs, constructs, manufactures, and sells systems, components, and products used in oil and gas drilling and production; provides oilfield services and supplies; and distributes products, and provides supply chain integration services to the upstream oil and gas industry worldwide.

Tesoro Corporation (TSO) engages in refining and marketing petroleum products. It operates in two segments, Refining and Retail. The Refining segment processes both heavy and light crude oils and produces primarily gasoline and gasoline blendstocks, jet fuel, diesel fuel, and heavy fuel oils.

I hope, like everyone else, that the economy continues its upward momentum. However, why not protect your portfolio and be ready to make changes where necessary. This is some great information in preparation for a bump in the road. If you own shares in one of these stocks, take a close look at these picks, and possibly come up with back up plan.

Quotes taken from report by Parsimony Investment Research, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Petro Lucre LLC D.B.A Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

There has been a lot of debate around the Keystone XL pipeline from Canada to Houston,TX. There is a large group of people who are supportive of this project, but there is also a lot of backlash. What if Canada goes elsewhere to export oil? Some people are wondering this exact thing, and luckily, Keith Schaefer has an update on the Canadian Oil Sands and its relationship with the U.S.

Right now all western Canadian oil is shipped to one place: The USA.Alternative markets means: Asia, via a pipeline to the west coast where tankers would transport it across the Pacific.

All this oil supply will be great for consumers, and Canada’s economy (jobs and royalties) and for geo-political stability in energy prices.

But with the US increasing oil production for the first time in 40 years – thanks in large part to the shale revolution in the Bakken oil formation in North Dakota – Glass says there is a chance that the US might not need Canadian oil as much – in the same way he says Canadian natural gas is vulnerable to being shut out of the US market because of increased US natural gas production…

…If any foreign crude gets shut out of the US, says Bedard, he expects it would be imports from Nigeria;”I think Canadian crude squeezes out other crudes. I would sure be surprised” if Canadian crude was displaced out of the US. He added that doesn’t see Cushing ever being full – the builds in supply are slowing, and rail and pipeline capacity out of Cushing is being developed…

…There is no stranded oilsands production right now, but Glass says that $20/barrel discount that Canadian heavy crude is getting compared to other world oils is costing the Canadian economy. Assuming 1 million barrels a day of oilsands production is going overseas, instead of down into the US, Canada could stand to gain about $3.65 billion for every $10/bbl more revenue it could get than it’s receiving now…

Will the U.S. stick with Canadian oil and visa versa? Seems like a pretty sweet deal for both sides. If the pipeline is put in place, it could create a really strong working relationship between the two countries. This would take great pressure off of the transportation portion of the relationship and could provide an even better situation  that the current one.

Quotes taken from report by Keith Shaefer, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Petro Lucre LLC D.B.A Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

We are crazy about oil, and think everyone should be too. If you follow our blog, you know that we think oil is going to stick around for a long time to come, and believe it or not, others feel the exact same way. Thinking of keeping in the oil investment business for awhile? How about 50 years? Well, according to Jim Royal, 50 years is just about right.

1. Geopolitical turmoil
The instability of many oil-producing regions keeps the market on edge. With the imminent withdrawal of U.S. troops from Iraq in December, even more instability could be around the corner. Iran is working to influence the area, and Saudi Arabia and others are becoming nervous. Some reports indicate that Saudi Arabia has been negotiating with other Muslim countries to create an informal alliance against Iran.

Any military conflict among large oil powers not only hurts the immediate production of oil, it also hurts the long-term supply, as my Foolish colleague Dan Dzombak shows. Many times these countries never return to their former production levels.

And there’s plenty of turmoil besides that of the Mideast, with major producers such as Venezuela and Russia struggling with their own instabilities. Russia has taken steps againstRoyal Dutch Shell and BP (NYSE: BP  ) in the past, and Venezuela offers risk to investors in Harvest Natural Resources (NYSE: HNR  ) , among others. All this puts consistently available supply in some doubt (See Point 2.)

2. Global supply and demand
The U.S. and Europe continue to use prodigious quantities of oil — way more than they actually produce. And many countries across Asia and Africa desire a Western lifestyle. Among them, China and India are growing rapidly, and that requires lots of energy. That incremental demand is putting serious pressure on oil prices. As The Economist notes, oil production has struggled to keep up with demand in the last decade.  In fact, in 2010, for the first year ever, oil consumption exceeded production, eating into inventories.

The U.S. consumes about 25% of the world’s oil production, while China is the second largest consumer, using less than half what America does. But the numbers are much more striking on a per-capita basis. The U.S. uses 12 times as much oil per capita, meaning that demand for that Western lifestyle in China will support oil prices.

3. Commodities trading
Speculation can drive huge volatility in energy, and energy ETFs that simply buy the next month’s contract regardless of price can exacerbate price swings too. With the big banks scoring megabucks on commodities trading, you should expect more volatility in energy prices, which is good for banks’ trading profits.

Canadian Natural Resources was one of the few stocks in our previous post about Canadian oil sands companies with great potential. As a follow up to this article, let’s delve a little deeper, and see why CNQ is such a great pick. Growth potential is always a great sign, and Isac Simon explains why. 

Impressive returns
The Calgary-based company has posted impressive earnings before interest, taxes, depreciation, and amortization, which reflect the company’s strong underlying fundamentals. Canadian Natural has bounced back from a sore 2009 by posting a 16% growth in EBITDA through the last 12 months.

What stood out in particular was a year-over-year 27% growth in its North American production of crude oil and liquids in 2010. Natural gas production did see a slight fall by 5%, which is understandable given the poor market conditions for the commodity.

But the company is well-equipped to take advantage of the natural gas boom in the future. With 3.8 trillion cubic feet of proven natural gas reserves (which is approximately 17% of total proven reserves), I suspect that Canadian Natural is waiting to seize the right opportunity to jack up its natural gas production.

A growth engine?
Capital expenditures more than doubled in the past 12 months, thanks to acquisitions of properties containing proven and unproven reserves in the company’s core regions in Western Canada.

Trailing-12-month capex stood at $6 billion. Canadian natural has ambitious plans for growth. The natural gas capital expenditure budget for 2011 has increased by $150 million as the company increases drilling in its liquids-rich unconventional natural gas plays.

Free cash flow is currently $789 million — certainly enough to fuel the company’s short-term growth plans.

Impressed yet? I know I going to be watching these guys pretty closely. If growth is in their future there should be some good news on the way. If you like oil sand plays, this is your company.

Quotes taken from report by Isac Simon, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Petro Lucre LLC D.B.A Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

Shale plays have stolen the show, but the Canadian oilsands are still plugging along strong. There are six stars working in the oil sands, and should be noticed! Haven’t thought about the oil sands lately? Well, you should! Michael Ray has six solid recommendations and great support for his picks. 

Canadian Oil Sands (COSWF.PK): If one is looking for a pure play on the oil sands then one must consider COSWF.PK. Canadian Oil Sands is the largest joint venture owner (36.74%) in Syncrude Project. The Syncrude Project is a Joint Venture undertaking among Canadian Oil Sands Limited, and six other companies.

Suncor (SU): Suncor operates as an integrated energy company located in northeast Alberta. While the company has several different business sectors, it is its oil sands business that is the mainstay of the company and will be the engine that drives the growth of the company.

Imperial Oil Ltd. (IMO): Imperial Oil in an integrated company that not only explores and produces crude oil and natural gas, but also is involved in the transportation, refining and distribution of end-stage products. IMO holds a 25 percent interest in Syncrude, which makes it the second largest holder in the partnership behind COSWF.PK. Imperial’s share of the production in the first quarter was 80 thousand barrels a day, versus 67 thousand barrels in the first quarter of 2010. Increased production was primarily the result of improved mining and upgrading reliability as well as lower planned maintenance activities. Imperial’s share of proven reserves for the Syncrude project is 800 million barrels. For 2010, the company’s total daily production of crude oil and natural gas liquids before royalties was 247,000 barrels. Imperial’s production from oil sands in 2010 totaled more than 217,000 barrels a day from the company’s wholly owned Cold Lake Project and its 25 percent share of Syncrude. Needless to say, IMO’s bottom line is heavily influence by the oil sands.

Canadian Natural Resources (CNQ): CNQ is a company that engages in the exploration, development, production, marketing, and sale of crude oil and natural gas. The company operates in North America, the United Kingdom, and Cote d Ivoire/Gabon in offshore West Africa. The company is involved in oil sands through its Horizon oil sands project in Alberta. The company estimates that the project holds 14.3 billion barrels of bitumen and proved and probable gross reserves of 2.9 billion barrels of synthetic crude oil. Needless to say, the company has long-term plans for a major expansion of this project to increase the productive capacity.

Sinopec Shanghai Petrochemical Co. Ltd. (SHI): For a more intriguing investment in the oil sands one needs to look no further than China’s SHI. Sinopec Shanghai Petrochemical Company Limited is engaged in the production of a variety of petrochemical products, synthetic fibers, resins, plastics, and petroleum products in China and internationally. The company was founded in 1972 and is based in Shanghai, the People’s Republic of China. The Chinese company’s first purchase into the oil sands came by multiple purchase from Total S.A and Synenco Energy (SYEYF.PK). As a result the Northern Lights Partnership (NLP) is equally owned by both Total Canada and Sinopec.

ConocoPhillips (COP) a large stake in the Syncrude project. The value of the purchase was estimated to be $4.65 billion and marked one of the largest Chinese investments ever in North America. ConocoPhillips’ stake was a 9.03% interest in the Syncrude project, so assuming the project can generate 350,000 barrels a day, roughly 31,000 barrels would belong to the Chinese company. With these investments, SHI joins another Chinese oil company, PetroChina (PTR), which acquired a majority stake in the lease, held by Athabasca Oil Sands Corp for $1.9 billion in 2009.

There are some big players in the Canadian oil sand plays, and they are really doing work. Despite the fact that the oil sands have not had as much publicity lately, they are still going strong. Watch these stocks, and maybe because of the lack of attention they receiving, it may make them a better investment! 

Quotes taken from report by Michael J. Ray, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Petro Lucre LLC D.B.A Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

The shale boom has taken over the U.S. oil and natural gas market. It has presented a new approach that has increased production in the states and greatly impacted the market. What about other countries? Is anyone else exploring possible shale plays? Well, apparently they should be! Shale natural gas can be found in a variety of locations across the globe. Marin Katusa summaries a great study done about the possible shale plays across the globe.

In the face of such impressive shale success in America, many began to wonder about shale gas potential in other parts of the world. In response, the EIA commissioned a report estimating the global volume of shale gas outside of the United States, and the results are, well, a bit mind-boggling.

The report marks the first attempt to estimate the volume of technically recoverable shale gas on a global scale, and did so by assessing 48 shale basins in 32 countries outside of the U.S. (where the resources were already known). While U.S. resources stand at an impressive 862 trillion cubic feet (Tcf), those 48 global basins contain an estimated 5,760 Tcf of technically recoverable shale gas. That gives a global shale gas total of 6,622 Tcf.

To put that into perspective, most current estimates of the world’s technically recoverable natural gas resources (not including shale gas) come in at 16,000 Tcf, which means shale resources add more than 40% to the world’s gas volume.

Natural Gas Production (2009)	Natural Gas Consumption (2009)	Natural Gas Net Imports (Exports) as % of Consumption	Proved Natural Gas Reserves	Technically Recoverable Shale Gas Resource
trillion cubic feet		percent	trillion cubic feet
China	2.93	3.08	5%	107.0	1,275
United States	20.6	22.8	10%	272.5	862
Argentina	1.46	1.52	4%	13.4	774
Mexico	1.77	2.15	18%	12.0	681
South Africa	0.07	0.19	63%	485
Australia	1.67	1.09	(52%)	110.0	396
Canada	5.63	3.01	(87%)	62.0	388
Algeria	2.88	1.02	(183%)	159.0	231
Brazil	0.36	0.66	45%	12.9	226
Poland	0.21	0.58	64%	5.8	187
France	0.03	1.73	98%	0.2	180
India	1.43	1.87	24%	37.9	63
United Kingdom	2.09	3.11	33%	9.0	20

Study author David Hughes estimates there is actually only a 12-year supply of easily accessible, domestic natural gas, in part because well productivity is declining. To maintain the current rate of production would require the drilling of 30,000 wells annually – a slight increase from the current rate of 25,000 and a level that Hughes believes will incite a major environmental backlash.

While not everyone will agree with Hughes’ conclusions, it is true that ”technically recoverable resources” often stay in the ground for a very long time because they are not realistically or economically recoverable.

I found the chart extremely helpful and informative, and thought you guys should see it too. Which companies are going to jump on board with some global shale plays? I am excited to see where this goes and which companies are going to try to cash in.

Quotes taken from report by Marin Katusa, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Petro Lucre LLC D.B.A Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

We all know T. Boone Pickens is a great person to follow when looking for new and promising energy stock picks. The following stocks are not only liked by Pickens, himself, but are also favored by various hedge fund managers due to their downside protection. Insider Monkey has broken down the numbers and given us great information on why these are solid energy stock picks.

CompanyName	Ticker	Value (x1000)	No. of Funds
B P PLC	BP	1,749,031	41
APACHE CORP	APA	1,802,685	41
HALLIBURTON COMPANY	HAL	893,531	39
NATIONAL OILWELL VARCO INC	NOV	1,311,698	39
CHESAPEAKE ENERGY CORP	CHK	3,403,693	38
OCCIDENTAL PETROLEUM CORP	OXY	2,586,603	36
SUNCOR ENERGY INC NEW	SU	882,044	35
DEVON ENERGY CORP NEW	DVN	1,273,558	33
SANDRIDGE ENERGY INC	SD	284,753	28
PLAINS EXPLORATION & PROD CO	PXP	605,149	25
WEATHERFORD INTL LTD NEW	WFT	449,565	25
MURPHY OIL CORP	MUR	320,654	22
EOG RESOURCES INC	EOG	730,653	21
CANADIAN NATURAL RESOURCES	CNQ	978,743	20
OCEANEERING INTERNATIONAL INC	OII	266,731	18
MCMORAN EXPLORATION CO	MMR	256,101	17
NOBLE CORP BAAR	NE	335,086	17

British Petroleum and Apache Corp are the two most popular energy stocks among hedge fund managers. There were 41 hedge funds holding each stock at the end of March and the total value of hedge fund holdings was around $1.8 billion. Boone Pickens is bullish about both companies. He initiated his APA position during the first quarter and he also boosted his stake in BP by 18%. Bill Miller, Eric Mindich and David Einhorn are among BP’s invetors (See Einhorn’s top stock picks).

Chesapeake Energy (CHK) was Boone Pickens’ largest position at the end of March. Other hedge funds were also very bullish about CHK, investing more than $3.4 billion in the company. Mason Hawkins, Israel Englander and Carl Icahn are among the CHK investors (Check out Icahn’s favorite stocks here).

Occidental Petroleum is another stock with tremendous hedge fund interest. Boone Pickens increased his bets on OXY by 65% during the first quarter. Hedge funds collectively invested more than $2.5 billion in OXY. Ken Fisher, Ralph Whitworth and Ric Dillon have very large bets on OXY. Occidental Petroleum is one of Ken Fisher’s favorite stock picks.

There are plenty of solid stock to choose from when looking at this list. I think that is possible that you are able to find a stock in this list that fits your criteria and interest. Hey, if T. Boone says its good, it must be good! As always, additional due diligence can never hurt.

Quotes taken from report by Insider Monkey, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Petro Lucre LLC D.B.A Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

Towards the beginning of this year, we did a lot more reporting on Quicksilver Resources. However, we haven’t been hearing much about them lately. So what have they been up to? Here is an update from Steve Zachritz who has put together all the details.

The Core Plays …

The Barnett Shale Remains Its King Pin:

• 155,000 net acres in four areas
• This represents 2.6 of the company’s 2.7 Tcfe proved reserves
• It calls less than half of its position developed leaving a 10+ year inventory.
• 81% of 1Q11 production
• Plan here remains to grow low cost production and the older wells now provide a stable base of cash flow as declines shallow out. For 2011, it is looking to grow it 20%.

Horseshoe Canyon – (Canada – CBM gas)

• 316,000 net acres
• 15% of total 1Q11 production, coalbed methane, typical manufacturing operation.
• Plan: minimize declines and funnel cash from here to Horn River development.

Horn River Basin – (British Columbia, Canada – Gas)

• 130,000 net acres
• 3% of total 1Q11 production coming from a handful of horizontal Devonian shale gas wells.
• These are large target wells, to date ranging from an estimated 9.5 to 19.4 Bcf per well EUR. The more recent wells are coming in at the higher end of the range. EOG, Apache (APA) and others have a presence here as well and report similar strong results.
• Reserve upside thinking there is 10+ Tcf.
• Plan: Continue to slowly drill gas wells, which can be piped to end markets in either the midwest or the Pacific northwest as well as end users within Canada. When gas prices rise they can relatively quickly ratchet gas production.

The United States is benefiting greatly from the Canadian oil sands, providing abundant fuel from a friendly neighbor to the north, thus reducing dependence on foreign oil from nations with a less-friendly attitude toward the U.S.  One would assume that U.S. regulators would be happy to get their oil from Canada, but not so fast.  Apparently U.S. lawmakers are expressing concern that the diluted bitumen derived from Canadian oil sands may be corroding U.S. oil pipelines.

U.S. Congressman Henry Waxman, the leading Democrat on the House of Representatives’ Energy and Commerce Committee, is worried that regulatory oversight isn’t keeping up with an increasing amount of diluted bitumen being transported via U.S. pipelines. “I’m concerned that the industry is changing, but the safety regulations are not keeping up with the changes,” he said at an Energy and Commerce subcommittee hearing. “That could be a recipe for disaster down the road.”

Anthony Swift of the Natural Resources Defense Council said at the hearing, “It is in the public’s best interest for our pipeline safety for regulators to evaluate the risks that high volumes of heavy, corrosive and abrasive crudes, such as diluted bitumen, will have on the U.S. pipeline.”

A number of pipeline accidents in the U.S. Midwest have some questioning whether diluted bitumen may be to blame. TransCanada’s existing Keystone pipeline leaked 10 barrels of oil, due to a faulty fitting at a Kansas pump station last month. That accident followed a 500-barrel spill at a pump station in North Dakota in early May.

The committee last month passed a bill requiring the Pipeline and Hazardous Materials Safety Administration to study the impact of diluted bitumen on U.S. pipelines.

Even Republicans think the issue should be investigated. “I think it is something we need to look into,” said Republican Representative Joe Barton.

However, President of the Association of Oil Pipelines Andrew Black disputes any claims that diluted bitumen is contributing to pipeline corrosion, saying, “Diluted bitumen has been moved through pipelines for many years.”

At any rate, what harm could come from assessing the risks?  If there’s no problem, then we continue to take advantage of Canadian oil.  If there is a corrosion problem, we invest in pipeline infrastructure to reduce corrosion.  It would be nonsensical to risk losing the pipelines, which cost billions to construct, simply because we didn’t take action early on.

SOURCE: http://oilprice.com/Energy/Energy-General/Regulators-Concerned-About-Canadian-Oil-Corroding-U.S.-Pipelines.html

Knowing which stocks are worth your time, research, and investment is the name of the game. Why not save some of your time and maybe research and consider Suncor? The research is looking good, and Suncor is expected to do some good things. Zacks agrees and gives us some facts. 

…Suncor has significant oil sands and conventional production platform, huge long-lived oil-sands reserves and an impressive downstream portfolio. The company’s asset base includes substantial conventional reserves and production at offshore Eastern Canada and in the North Sea, which generate strong margins and should provide free cash flow to fund future oil sands expansion…

…Suncor recently unveiled its ten-year business strategy. In particular, the firm outlined plans to increase production to more than 1 million barrels of oil-equivalent per day (MMBOE/d) by 2020. Suncor expects oil sands production to grow by 10% and company-wide production to grow by 8% in each of the next ten years.

Growth will mainly come from Suncor’s in situ projects (Firebag Stages 3 through 6 and the second stage of MacKay River), investments, as well as ongoing production in international and offshore operations. The C$1.75 billion strategic partnership with French oil major Total SA (TOT), to jointly develop the Fort Hills and Joslyn oil sands mining projects, will also play a critical role…

With Suncor’s solid ten year plan, alongside their continuous work in the Canadian oil sands, they should be in good shape. Growth will be important to this company in order for the stock to really pop. Watch SU closely, they might just surprise you!

Quotes taken from report by Zacks, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Petro Lucre LLC D.B.A Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

Discussion of  building a pipeline from the Canadian Oil Sands down through the U.S. has been going on for some time now. There has been backlash about the pipeline plan. No worries oil investors! The show, i mean, oil production will go on! Ian Austen does a great job of summing up the whole situation.

“The Canadian oil sands will continue to be developed irrespective of whether the pipeline goes ahead,” said Russell K. Girling, the president and chief executive ofTransCanada, the company behind the $7 billion project.

…The stakes are enormous. The oils sands have reserves of 171.3 billion barrels, according to estimates by the provincial government of Alberta — enough to change the balance of world oil markets, some energy experts say; by comparison, Saudi Arabia has reserves of 264.2 billion barrels…

…The State Department, which must approve the project because it crosses international borders, is nearing the end of its environmental review and then will examine national interest questions. It has said it expects to make a ruling by the end of the year.

As the world’s largest importer of oil and a next-door neighbor of Canada, the United States is the most attractive and logical market for oil sands crude and already buys virtually all that Canada exports. But producers are eager to move their product all the way to the Gulf of Mexico, where there are more refineries capable of handling the unusually thick crude.

It is now shipped through an existing pipeline — an earlier part of the Keystone project — to Cushing, Okla., where large storage facilities are fed by a variety of pipelines. There, it is priced against lighter oil and generally commands a lower price.

Because demand for oil in the United States is unlikely to fall significantly in the foreseeable future, Canadian producers are sure to look for other ways to ship their oil south if the Keystone XL project is rejected. While backup plans are not fully developed, other options do exist…

Image Credit.

There is clearly some tug of war going on between the oil industry, government officials, and environmentalists. Who will get their way? I’m not sure, but what I do know, is that the oil sands aren’t going anywhere anytime soon. Train, Road, or Rail, the oil will get to us somehow.

Quotes from report by Ian Austen, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Petro Lucre LLC D.B.A Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

I posted this so you could just hear the staggering number amounts of Canada’s oil. The amount of oil is staggering. Below is some news I recieved from an investment group. We should be aware of the Oil Power Canada will soon become.  Did you know that right now Canadian oil is being pumped into the US and reaches the oil terminals in Oklahoma. Oklahoma that still pumps US oil? I wonder how our old ally Canada feels about Obama promoting the Brazilian oil industry? After you hear the bold oil totals turn off the video so people don’t sell you something. SHAW

Next Tuesday, May 24th, this company’s chief operating officer is making a long-awaited presentation at the UBS Global Oil and Gas Conference in Calgary.

From the looks of things, his report will detail their endgame in harvesting this resource — whose potential value may be in the trillions.

This is probably the big one folks…

And I can’t emphasize enough how important it is that you get the following information before the world hears about it in the papers next Wednesday morning.

There won’t be another reprieve.

Watch this video today.

http://www.angelnexus.com/o/web/26728

I posted this so you could just hear the staggering number amounts of Canada’s oil. The amount of oil is staggering. Below is some news I recieved from an investment group. We should be aware of the Oil Power Canada will soon become.  Did you know that right now Canadian oil is being pumped into the US and reaches the oil terminals in Oklahoma. Oklahoma that still pumps US oil? I wonder how our old ally Canada feels about Obama promoting the Brazilian oil industry? After you hear the bold oil totals turn off the video so people don’t sell you something. SHAW

Next Tuesday, May 24th, this company’s chief operating officer is making a long-awaited presentation at the UBS Global Oil and Gas Conference in Calgary.

From the looks of things, his report will detail their endgame in harvesting this resource — whose potential value may be in the trillions.

This is probably the big one folks…

And I can’t emphasize enough how important it is that you get the following information before the world hears about it in the papers next Wednesday morning.

There won’t be another reprieve.

Watch this video today.

http://www.angelnexus.com/o/web/26728

For those of us in California, we do not rely on Middle Eastern oil. (SCHOCKER!)  It comes from Alaska, Canada, and elsewhere. Europe relies heavily on oil from that region.  They are going to be affected the most.   So why are the prices so high?  The price of oil right now is being dictated by the speculation that the turmoil in the region will affect world oil supply. This region is the largest producer in OPEC. That alone would affect the price.

Recently, while listening to the news that Mr. Obama was going to tap into the Strategic Petroleum Reserve to bring the price of oil down,  I freaked.  Why?? I said. There’s no need to do this yet.  The news also said we only have 2 months of oil left in the SPR.  I freaked some more.  SO..I did research and talked to engineers and geologists that I know well.  They reminded me that Bill Clinton also tapped the SPR when he was in office. While it may be an emotional response so they both could say, “we feel your pain (AMERICA) and we’re doing something about it,” in reality it has no real impact on the long range price. If  Mr. Obama does what he says he wants to do then what they draw out would be a drop in the bucket of our national consumption. AND the oil will have to be replaced at a later date and at a higher price than when it was first purchased and placed underground.  IT IS ALL POLITICAL.  By the way, not to scare you, but there are only 30 days of oil storage in the SPR available at today’s consumption level.

The products manufactured there are simply extraordinary.  For example the IDX20 is a  water based degreaser, and as much as I learned in Chemistry class I thought I might have to go back and check my notes.  It is common fact that oil and water don’t mix. Oil, the denser of the two liquids, normally floats on top of water, but what the geniuses at Chemac have done is formulated a compound that penetrates the oil and washes it away using compounds that are biodegradable.  So not only is it effective, it’s safe.

That being said Chemac is now approaching companies in the International and Canadian Oil Fields who are looking for effective products that are environmentally responsible.  As one could imagine, in an industry where oil is the focus things get more than messy. 

Chemac offers a full line of degreasers, cleaners, and odor eliminators (Odorgon) which are all water based, and biodegradable. 

IDX 40 is ‘rig ready’ and boasts a foaming action which allows it to cling to verticle surfaces and extends the retention time.

HDD200 is a degreaser emulsifier for use in high pressure sprayer systems.

Odorgon is an odor eliminator which works by encapsulating malodor molecules and breaking them down; no cover-ups involved.  The US military uses this product under the name Dessert Boot manufactured for Sara Lee.

If you’re looking for any information on the products shown about, or for a full list of Chemac products visit their website at: http://www.chemac.com

As stated in yesterday’s Blog, assuming the market performs well this week, certain stocks look ripe for purchase but with a certain amount of caution. This owing to US corporate earnings beginning this week along with traditional summer stock weakness. As of this morning, it appears that the markets have opened on substantial weakness, particularly in the resource sectors.

This will provide for some good potential purchase on weakness opportunities. Using caution, I recommend looking at (and purchasing small amounts of) the large Canadian oil and gas producers, including:

• Canadian Natural Resources (CNQ)
• Encana (ECA)
• Nexen (NXY)
• Petro Canada (PCA)
• Suncor (SU)
• Talisman (TLM)

I’ll follow up shortly on these picks, Warren.

The oil sands currently export about half of their production of 1.2 million barrels per day to the U.S. According to the Canadian Energy Research Institute in Calgary, that production will more than double over the next 25 years to four million barrels per day, with most of that oil going to the U.S. For Canada, that will mean 380,000 new jobs—and an additional $1.4 trillion in GDP, which will kick off $252 billion in tax revenues, more than half of which would go to Ottawa. Obama’s climate change legislation calls for reducing U.S. greenhouse gas emissions by 80% by 2050 (a target Macleans calls ‘whopping’), implementing a ‘cap-and-trade’ policy (which passed the House yesterday by a razor thin 219-212 vote), and requires utilities to get at least 15% of their electricity from renewable fuels. Oh, and provisions that would punish imports from countries whose carbon regulations are deemed by Washington to be less stringent than those of the U.S., meant to address the potential competitive imbalance created for some U.S. industries by the costs of compliance with the new cap and trade regime.

Of course, oil sands production emits up to 15 per cent more greenhouse gases than the production of conventional oil, not to mention the toll it takes on the landscape. Luiza writes: “The reality is that Obama is leading an aggressive effort to remake American energy policy with potentially severe consequences for the oil sands, and by extension, the Canadian economy. … Obama may be a self-proclaimed multilateralist, but the provision holds the potential for a unilateral economic wallop—or at least allowing Washington a very heavy hand in the writing of climate rules of its trading partners.”

According to Macleans’ Luiza Savage, Barack Obama is bad for Canada because he is pro-environment. But we should endeavor to be a world leader in the green industry, and what we’re doing in Alberta is despicable.

For every barrel of synthetic oil produced in Alberta, more than 80 kg of greenhouse gases are released in to the atmosphere and between 2000 and 4000 barrels of waste water are dumped into tailing ponds. The production also threatens Canada’s international commitments under the Kyoto Protocol, in which we agreed to reduce our greenhouse gas emissions by 6% from 1990 levels by 2012. Instead, our greenhouse gas emissions have increased by 24%, with the oil sands accounting for nearly 4% of our total emissions. We are ranked as the 8th largest emitter of greenhouse gas, quite high considering our population.

In 2008 we produced 438,000 cubic metres per day of crude oil, crude bitumen, and natural gas condensate. Of that amount, 65% was exported (283,000 cubic metres per day), almost all of it to the U.S. We could be supplying the U.S. with all the oil they want right now while developing green technology and energy that we could supply them with later. This would make us leaders in environmentally friendly energy & technology  (and allow us to enjoy the related economic boon), make our energy policy superior to that of the U.S. (thereby rendering any potential ‘protectionist’ aspect to U.S. energy policy moot), and help us meet our international obligations under the Kyoto Protocol.

So is Obama really bad for Canada?

Click to read about oil companies ignoring “green” ops.

Sure, it is easy to dump on the oil companies as the culprits, but they are just profit entities. They don’t have an agenda, other than making money. If the investments in alternate sources of energy made sense to them, they would be right there, but they have scaled back recently, because they see the future in investment primarily in the Alberta Canada Oil Sands. Already the number two producer, soon Canada will surpass the middle east in production of oil imported into the US (maybe it is better to buy from nearby friends, than from fair-weather allies whose volatility is worrisome).

But the oil companies may be surprised by the emerging natural gas situation (although many of them are invested heavily there as well). Currently, there is a worldwide glut in natural gas production and prices are dropping. There are known worldwide reserves for natural gas taking us out several hundred years. So, the real future may, in fact, be natural gas as the alternative fuel. Many major truck fleets (including UPS and FEDX) have made the conversion and most truck lines will have done it in the next few years (google “T. Boone Pickens” for his predictions and data). Liquified natural gas has been used lately in some home electric generator systems, producing electricity cheaper than is available from the power companies. And natural gas (while not as clean as solar or wind produced energy) produces a fraction of the pollution as coal or oil and new technology shows promise of even cleaner “burns.” You can read about gas as a “clean” energy source here on the epa.gov site:

Read about “clean” gas on the EPA.gov site

Solar is the ultimate solution, of course, but it requires the nationwide availability of less expensive panels to have any impact on replacing other mechanisms of producing power. However, if breakthroughs occur providing low prices, where panels could be as inexpensive as roofing materials (yes, some foresee that, maybe within a few years), then we could literally see a revolution as millions of homes would go “off the grid” as fast as the new panels could be produced. It’s a good sign that we can now buy a variety of do-it-yourself panels on Amazon and at electronic stores like Fry’s (and the prices have dropped significantly in the past two years). A few years ago we never heard of cell phones and look at them now. Same with personal computers and the internet. And did anyone really predict those phenomena, say in 1980? No. That is why we can reasonably assume that the prognosticators might be just blowing smoke. A few simple improvements in solar panel production technology (the panels are great… they just need to make them more efficiently) and soon you might be able to convert to solar as easily as you installed that new flat screen tv in your family room (another revolution that happened overnight).

Pebercan had prospected for the petroleum and signed an agreement with the Cuban government for shared development rights, from 1993 – 2018.  It was announced Friday in the Cuban business media and Reuters picked it up, that the Cubans have trashed the agreement.  My friend says the Cubans have made a new deal with the Russians.   What, they couldn’t wait until this deal ran its course?

I’ve got to say, I’m really ticked. I’d say anyone who vacations in Cuba after this is just telling the Cuban government that it doesn’t matter how Canada is treated, or whether they are honest in their dealings with us.

Was your cheap vacation partially funded by this act of dishonesty? Think about it . . . . and pass this on. (If new developments somehow vindicate the Cubans in this, I’ll be sure to pass on that information too.)

Gathering Herbs in Cuba

Canada and Oil

Canada, not Saudi Arabia, is the largest exporter of oil to the United States according to official statistics from the U.S. Government. This explains why after Obama made a comment about tampering with NAFTA his economic adviser had a ‘secret’ meeting at the Canadian Consulate in Chicago to reassure Canada that it was more rhetoric than policy.

Gas Prices, Inflation and Don’t Panic

The press loves headlines trumpeting ‘record’ high gas prices and the effect on the consumer, but are the current gas prices truly at record levels? Well actually, historically speaking, yes. But in viewing the current price of gas vs. historical gas prices we may also want to consider the dramatic increase in efficiency in automobiles (MPG) and heating systems (construction and units) over time which help to soften the relative effect on the consumers.

Quit whining you…..you…..whiny Americans.

Think gas is expensive in America, consider the cost of gas in Europe. (25-40% of the gas price in Europe is attributed to taxes.)

Why is the price of Oil at record levels?

There are many reasons oil has become so expensive (discounting theories involving, Bush, Cheney, big oil and the Saudis):

1. Increasing Demand for Oil — China and India continue to boost the demand for oil and drive worldwide consumption upwards.
2. Supply — OPEC, The Organization of Petroleum Exporting Countries, began cutting supplies in 2006 when prices were low and now that prices are at record highs are unwilling to give up the current profits they are receiving and increase production.
3. Falling Dollar — with the fall of the dollar and the credit crunch many investors have begun looking for profits in commodities and are speculating on the price of oil which is driving the price even higher.
4. Problems with Oil Suppliers — Venezuela threatening to cut production, Iraq’s infrastructure still in shambles, Iranian politics, and Nigeria’s militants attacking refineries don’t help the supply problems.

The Bright Side of High Oil Prices

• High price of oil makes the relative cost of alternative sources of energy (solar, wind) less expensive and thus spurs investment in new technologies.
• There is a price of gas that becomes so high that Americans will change their consumption habits, adding to the demand for alternative sources of energy, and more fuel efficient cars (economist predict that $4.00 gas is the price).
• High oil prices make it profitable for Canada, our friend to the North, to mine even more of the ‘oil sands’ in Alberta. At current production levels they have an estimated 180+ years of supply.

The best news of all is that we live in a market economy which is driven by the consumer. Our daily decisions on consumption affect what is produced in our economy. So do your neighbors to the north a favor and fill up your SUV eh!

Read more:

Oil Statistics from the U.S. Government: Oil Statistics

Obama, Nafta and the Canadian Consulate: NY Times Story