Bulls buying, hedge funds covering, Market makers buying back shares, M&A activities, New good numbers from major oil companies, momentum up, volume-small data point that "could" lead to strength? Well, with so many traders parked on the bearish side of this theme, the ripple effect could actually be quite big!
• Traders with leveraged positions and accumulated profits built up may buy to lock in gains (helping to push prices a bit higher)
• Investors and traders late to the game now have small losses, and some of them decide to cover (moving oil prices or energy stocks just a bit higher).
• As prices start to pick up momentum, hedgers like airlines and transportation companies start to lock in long-term rates while prices are still relatively low.
HUGE engines that run of gas ( practically free for producers) power fracking pumps that have new technologies throughout the chain . Russia’s state-controlled gas giant Gazprom [Thursday] signed a preliminary market development agreement to expand the use of natural gas vehicles in Russia . Cummins and Weichai JV with WPRT. This means all continents are working towards natural gas. The cycle of Massive global production of crude and gas is changing. Advanced pad drilling techniques allow frackers to launch five or ten wells in different directions from the same site. New drilling methods, pipelines and water removal. New on/off pumps, drill close for fracking, Chemicals, Smart drill-bits with computer chips can seek out cracks in the rock. New dissolvable plugs promise to save $300,000 a well. "We've driven down drilling costs by 50pc, and we can see another 30pc ahead," said John Hess, head of the Hess Corporation. Optimizing fields and spacing of wells for Horizontal drills and use of pressure pumps and sand, chemicals. Moving water and materials easier to maximize oil in fracking . The new adapting new technologies and industry norms changing . Faster drilling and the learning curve developing much faster with computer aided exploration, monitoring, controlling every aspect from exploration to delivery .. even the middle Where and how we get the gas is very important.
Take a look at other plays that could (wake up) all of a sudden . RAW materials, or even WPRT that provide natural gas engines. - WPRT is in joint ventures with Cummins and Weichai . The demand is not even seen tell developed and fruition. The demand in energy production could rock the many industries and lower of every good we sell in America. The world always looks at DEMAND as present need and a past comparison. True investors have to see the future.
Nature of the business every ten years. Boom to bust over and over again. The funny part is guys like you are always surprised when the world needs oil again. The infrastructure must be built for the running of more gas through the system. The demand for cheaper energy is always there if we cam provide it. The world still runs on oil and gas. The world of oil is changing with new technologies , drilling , equipment , exploration, logistics and infrastructure. HOW/Where it is shipped and processed is a big facture. PIPE instead of rail/truck/ship can lower the price/barrel over 10 dollars. That is one facture why the middle east is at a disadvantage with new technologies and re- equipping the industry. - October 22, 2015) - Sanchez Energy Corporation (SN) ("Sanchez Energy" or the "Company"), today announced operating results for the third quarter 2015. Highlights from operations include:
• Production of 4,862 thousand barrels of oil equivalent ("MBOE") during the third quarter 2015 for average production of 52,844 barrels of oil equivalent per day ("BOE/D") driven by continued outperformance of Catarina wells
• The Company received approximately $345 million in cash with the close of the Western Catarina Midstream Divestiture, with annual lease operating costs expected to rise approximately $0.75 per barrel of oil equivalent over previous guidance as a result of the transaction
• The Company's joint venture ("JV") with Targa Resources Partners LP (NGLS) ("Targa") to construct a cryogenic processing plant expected to have initial capacity of 200 million cubic feet per day ("MMcfd") and associated high pressure gathering pipelines near Sanchez Energy's Catarina asset in the Eagle Ford Shale is expected to provide a path to improved yields, lower processing fees, and significant marketing benefits The Company's Eagle Ford development remains primarily focused on Catarina, where the Company plans to run an average of two net rigs over the remainder of 2015 and into 2016. In the third quarter 2015, the Company brought online 27 gross (26.5 net) operated wells. As of September 30, 2015, the Company had 592 gross (476 net) producing wells with 30 gross (27 net) wells in various stages of completion, as detailed in the following table:
In April we were at 3 dollars . We have some resistance there. But then again with WTI rocketing at 49.6 right now, and support from RUSSIA , OPEC and the USA we could double. They are working on supporting oil pricing as Reuters report. This fuse has been lit.
PANIC $$$$$$$$$$$$$$$$$$$$$$$ all the way to 3 dollars today
The whole sector just took off. Oil was down 1.5$ and now up 1 dollar. Oil stocks held their ground this morning during the fall. Usually they would sell off. Time to set sails for Richland.
Many oil stocks are up today. This is what I have been waiting for to buy. Support among holders. No selling today.
next stop will be 5 dollars. The sour milk has been spilt and investors want the PPS to go to a normal area of trading. It is artificially low do to the pizzed of analyst who didn't see the divvy leaving them temporarily
The debt to equity is 2/1 . This is not uncommon but high. The Assets are twice as cheap as before right now. If oil goes back up so does the assets and reserves. Oil goes up to 60 dollars the middle of next year and 70 within two years and we triple our money. Analysis on the bottom is bleak and false in nature. Short sided analysis in the bottom of the cycle is worthless. Normal cycles and normal prices will tell you more. I would be a buyer here as the stock is only gaining momentum. When it hits four dollar retail will go crazy and at 5 institutions kick in with the shorts panicking all the way to 5.