Loading ...Yes, your comment certainly applies to refiners,like Harvest Energy, but has no bearing on Penn West who are only pumping out natural gas and crude. Natural gas prices have been relatively low, but not so low that it is a loss. Crude however, at $90/bbl is a windfall for Penn West. Why the low stock price?
and I’ve got to say I really think they have finally put in a bottom. There are several good opportunities right now IMO. I also looked at a bunch of the base metals. Aluminum looked pretty good, but some of the other base metals still look pretty shaky. I bought some Pinetree earlier last week at a bargain basement price — up 25% since. My order was filled by several small orders as some of the smaller guys were finally tossing in the towel. I think there are several good opps like this right now.
Earlier this year the refiners were making tall cash. Well what happened?
Back in May the spread between the price of gasoline (their end product) and crude oil (their input) was huge. Refiners bought the input on the cheap and sold gas at sky high prices. Since then, the price of crude oil has skyrocketed while the price at the pump has not made new highs.
Sometimes there are explanations which make sense.
Read the article on Naked Shorting in the right hand column, apply it to the oil sector as well as the PM sector, and then draw your own conclusions. In my opinion we are being robbed by these naked shorters, and right in front of the “police” who turn a blind eye to it, or more likely are a party to it.
i’m totally ignorant of the canadian oil trusts. i remeber some posting here when the tax structure or reporting requirements were changed but i didn’t follow it closely. not many okies are in the canadian oil trusts (that i know of). we have enough holes to pour money into down here (pun intended).
this summer, i hope to test a new technology on the heavy oil at the battery. i believe this technology will transform the heavy oil into light oil without heat or chemicals.
rno
i’m not familiar with enbridges’s planned capital spending projects. with all the refineries gearing up to process heavy oil, i believe enbridge will move much more product, both crude and finished product. the consumers of heating oil will probably be the first to get some relief. the asphalt buyers will see a sharp increase in price since the refineries will be able to process asphalt into gasoline and diesel.
rno
Further to my question about Enbridge: I do not understand the drop in Canadian Oil Trusts. My goodness, at $90 oil Penn West should be making obscene profits, yet their stock price has dropped from over $30 to the mid $20s. Why? I don’t think the tax situation in Canada is the cause. Divs won’t drop that much. So what do you think ?
I presume you are saying that Enbridge Pipeline will see more profits when more heavy oil is processed by the refineries. Enbridge also has a plan for more capital expenditures in ‘08. Does that fit in with more processing of heavy crude?
With me…jury still is out on that. I am trying MMS to see if I can rid myself of a life long affliction of asthma. I am “going slow” with it. I shall see what happens.
However, I can tell you positive results on my allergies I have had with MSM, which is a deriviative of DMSO. (google either of them). I use a teaspoon of MSM crystals in my cup of coffee in the morning, and when I don’t, within days I know it. I have experienced some very positive things since I started using the MSM a couple years ago, mostly pain related…but I also breathe much better too.
As with anything you take…. pharma, mineral, or herbal….check with your trusted physician first…
google VISCOSITOR google : ellycrack stock : wsce.ob
have you found a scotiabank yet and talked to the new account rep?
rno
Just wondering if you or anyone here would have any comments regarding MMS vs COPD?
http://www.healthsalon.org/344/mms-and-copd-testimonial-no-10/
Thank you for the oil patch update! Wow, was not aware all those refiners were down and gearing up for heavy oil. I have learned a great deal from you and others this year on oil, wheat, corn, etc. Thank you and I hope you and yours have a Merry Christmas and Happy New Year!
for those of you who believe that “the sky is falling” in the oil sector, please do a search on the following; alberta heavy oil, enbridge pipeline, cushing oil storage. you will then know how much heavy oil is available in canada, how it is shipped to cushing and how it is stored. then know this; eight refineries within 800 miles of cushing are down for “maintenance”. when they come back up, they will be able to process heavy oil into gasoline and diesel. then another group of refineries will go down for maintenance and come back up processing heavy crude. this will go on until most domestic refineries will be able to process heavy crude and will dramatically expand their capacity at the same time.
when oil was $20.bbl, heavy oil was not economical. at $36., it was at breakeven. at $90. new technologies are developed almost daily. the heavy oil is becoming available much faster than the refinery capacity to process it. when that refinery capacity comes on line, the supply will increase dramatically. the only thing constant about the oil patch that never changes is the cycle of boom and bust. this time promises to be the same song, different verse.
rno