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Trading Board Blog

Oil Market Conversion In Process

Posted by on Aug 26, 2015 in Trading Board Updates | 0 comments

According to the recent IEA report, “global supply continues to grow, currently running 2.7 mbpd above last year, but…… demand is only expected to grow 1.6 mbpd.” That puts us at a 1.1 mbpd production surplus. Is it any surprise that oil prices hit a new low? The good news: this market is in conversion. While this downturn may become the norm for a season, it also generates a means for economic improvement across the world as consumers gain from increased disposable income. Durable goods orders were up 2% last month along with several other...

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The Guar Picture: A New Trend As Prices Hit a New Low….

Posted by on Aug 19, 2015 in Trading Board Updates | 0 comments

Please meet my friend Jeet, who generously provides us updates on the India guar trading in our weekly reports. Here is his boots on the ground view of the India guar market: with low prices, supply is not arriving much in the market; people are holding large volumes of raw material and hoping for higher prices; once prices go up, they will release supplies. Currently the volume is approx 15,000 Bags/Day. DEMAND was not good. Little activity has been seen. On average, volume will not be more than 20,000 Tons in the entire month. The...

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Creditworthiness? The O&G Canary!

Posted by on Aug 19, 2015 in Trading Board Updates | 0 comments

Wall Street is scrambling away from oil; banks and investors fled months ago anticipating Iran opening their flood gates of supplies. Then recently, fracking gave us a surprise: oil rig counts increased, adding credence to a world glut scenario, which drove prices further down and another round of investor selling ensued. Last Wednesday, the EIA released reports showing the highest levels of U.S. crude inventory in 80 years! Again, more investors moved away from oil and gas. Here is the EIA weekly report:...

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Demand Spikes are Coming!

Posted by on Jul 30, 2015 in Trading Board Updates | 0 comments

This week, China’s market correction is playing out. Speculators are shorting oil and lowering futures rates based on potential fall off of China’s demand and the Iran deal adding supply to the market. Yep, oil prices are down! But, the API reported U.S. inventories fell 1.9M barrels last week. Reuter’s forecast a 200,000 barrel drop. Surprise! Summer is in full swing. This news stalled falling prices. Look for stockpile data from the EIA today…more on this bucking bronco later. In spite of depressed oil prices, one of our clients is renting...

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HUGE Oilfield $$$ Making Opportunity

Posted by on Jul 20, 2015 in Trading Board Updates | 0 comments

When oil prices go up and down, oilfield business opportunities are still there. They just change! I have one I would like to share, because now is a great time for it. Meet my friend, Jerry. Jerry’s group and I have been working several years now on a microbe that breaks down hydrocarbon chains at the interface of oil and water. Jerry has been working with these little buggers to break down paraffin and thick heavy crude in wells in Texas, Pennsylvania, and Oklahoma. These microbes are most beneficial, when applied to oil wells with...

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Happy Fourth of July??? Fireworks Are on Wallstreet!

Posted by on Jul 10, 2015 in Trading Board Updates | 0 comments

We hope you had a super Fourth of July celebration! While celebrating our independence as a country, our gain in independence from the oil monopoly forges on. In spite of OPEC’s predictions that U.S. frackers were dead at $70 a barrel, we saw production increase while oil rig counts fell by 50% and prices went well below $70. Just when it looked like drillers may be stacking rigs and sending teams looking for jobs in other industry sectors, 12 crude oil rigs were added in recent weeks (9 natural gas rigs went down, so the total number...

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World Population Growth Will Drive Demand!

Posted by on Jul 10, 2015 in Trading Board Updates | 0 comments

In the midst of an oil market downturn or a fracking bubble explosion, as I heard it referred to recently, don’t you find it interesting that companies continue to make announcements here and there about moving ahead on major off shore rig investments, developing on shore plays, and generally advancing territory with the contracting of leases and acquisitions of resources? It is clear that there are capital spending pull backs on many fronts, but not everywhere. It seems a bit odd in the face of OPEC over producing and seeking to drive out...

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A “Father of Fracking” Story!

Posted by on Jun 30, 2015 in Trading Board Updates | 0 comments

Happy Father’s Day! We hope you had a great weekend with family, BBQ, and celebrating Fathers! There is one Dad, I would especially like to celebrate this week. He is my best friend’s father, Jim. He is an 86 year old oilman from Louisiana. To protect his privacy, I am just using his first name. I had the honor of sitting with Jim, a fourth generation independent oil producer, a year or so ago. I thought you would enjoy a story about drilling from his early days. Jim’s Dad, Mr. G, was an independent oil producer outside of Shreveport,...

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There Is A New Sandman In Town!

Posted by on Jun 30, 2015 in Trading Board Updates | 0 comments

I am an avid believer that Wisconsin sand will have a long run as a King of Sands in the fracing world. However, I am not an engineer or expert, so that pretty much sums up the value of my opinion on the subject. All that said, I see changes emerging in these leaner meaner times, which may show up as trends in the market before the end of the year. These days, end users are more open to visiting alternative options in their methods and processes, especially if they improve the bottom line. However, they aren’t the only ones looking for ways...

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Dear OPEC……..

Posted by on Jun 30, 2015 in Trading Board Updates | 0 comments

It is amazing how wishful thinking can blind us to reality. I would conclude from the last OPEC meeting that they didn’t get the email: Fracing is here to stay! Ask Ryan Lance of Conoco Phillips, who stated last week: “…….. U.S. unconventional production is here to stay!” Other oil CEO’s have declared it and even reluctant sultans have acknowledged that the sustainability of fracing is much greater than they anticipated. Still, many Middle Eastern countries are hopeful even when the writing is on the wall and...

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