14
May
Wrap – Week Ended 5/13/16
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Charts For Thought:
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Rigs Should Bottom Soon ... But Oil Production Decline Will Steepen
Well Starts On A Run Rate For New Lows
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Existing wells being neglected
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Better than expected weekly EIA oil inventories on flattish imports, record for week of year refinery throughput, the expected further acceleration lower in U.S. crude production, and record for week of year gasoline demand.
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Natural gas in storage - in line to slightly better than expected weekly injection, much better than year ago and five year average injections as the massive storage overhang left from our just ended non-winter continues to erode.
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If you have questions or comments about Zman's Energy Brain please feel free to email us at zman@zmansenergybrain.com
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We added to our position in MRD last week at $11.38 during the conference call. Street has been missing the forest for the random tree here for too long.
And MRD Wrap and Cheat can be found here. This link also contains the weekly oil inventory review slide show.
The ZLT was up 2.3% points to 19.2% YTD while the XOP was up 1% to 11.2% YTD.
The Wrap Table
Favorite quote of the week:
"Changes to the data in this month's Report confirm the direction of travel of the oil market towards balance. The net result of our changes to demand and supply data is that we expect to see global oil stocks increase by 1.3 mb/d in 1H16 followed by a dramatic reduction in 2H16 to 0.2 mb/d." ~ IEA
May 14th, 2016 at 10:44 amany fibbonacci peeps out there? thoughts on this?
http://charts.stocktwits.com/production/original_54809925.?1463230614
May 14th, 2016 at 8:17 pmMy experience has been that when there are massive, catastrophic collapses (like the one we just went through), that is when the most money is made. The question is how this time around?
May 14th, 2016 at 8:40 pmFrom peak to trough we've lost 80% of our US rigs in the past 21 months or so.
Looking for historical patterns, is there a similar collapse in rigs we could draw a correlation to? What happened to the price of oil and small to mid to smid cap companies during that time?
I'm trying to determine when new capital should be applied to maximize returns based on previous boom bust cycles in the oil patch
May 14th, 2016 at 8:50 pmQuestions and comments under the Wrap will be addressed in the Monday post.
May 14th, 2016 at 10:09 pmGoldman Sachs emerges as vast natural gas player
https://next.ft.com/content/a9e67824-1846-11e6-bb7d-ee563a5a1cc1
May 15th, 2016 at 11:04 amRRC to buy MRD
http://www.reuters.com/article/us-mem-resource-dev-m-a-range-resource-idUSKCN0Y70ZS
May 16th, 2016 at 5:33 amMoglie monta ilmarito porno italia
Zman’s Energy Brain ~ oil, gas, stocks, etc… » Blog Archive » Wrap – Week Ended 5/13/16
October 14th, 2016 at 5:04 am