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Friday, August 31, 2012

Industry Sources Expect Waive Of Foreign Transactions in Canadian Energy Patch



Penn West has something in the pipe that will be over a billion, I wonder which other unconventional player has something?
"Industry sources say the recent deals could mark the beginning of a large wave of foreign investments and acquisitions in the Canadian energy sector. These sources said that state-owned or private companies from South Korea, Russia, China and emerging Asian nations are currently in discussions with a number of Calgary-based companies.
“It is very, very busy right now. There is a lot of intensity on the acquisition front,” said Brock Gibson, Calgary-based chairman of Blake Cassels & Graydon LLP. Mr. Gibson declined to discuss specific transactions, but said his law firm has not seen so much deal activity since the mid-2000s. The increased interest puts pressure on the Harper government to clarify its stance on foreign investment in the energy sector."

Chuck Akre - Investing in the Era of the Constrained Consumer


Chuck Akre, manager of the Akre Focus Fund, believes that high unemployment, tight credit and rising food and energy costs will put a damper on consumer spending. Yet his fund’s largest holding, at 9.7 percent, is MasterCard Inc., the consumer credit card-servicing giant. The reason? Akre sees a growing trend towards paperless transactions, which he says will pay-off for MasterCard over the long-term.
Such thinking serves Akre’s fund well. The fund’s 23 percent return over the past year has bested 99 percent of its peers in the mid-cap growth fund category and done so with less volatility than the stock market. The Akre Focus Fund got its start in August 2009. It owns 29 stocks, with 70 percent of its $1 billion in assets in its top 10 positions -- mostly holdings of large and midsized companies. While Akre's fund is relatively new, he managed the FBR Focus Fund from 1997 through 2009, delivering a 12.4 percent annualized gain, compared to a 4.4 percent return for the S&P 500-stock index over the same period. Lewis Braham recently spoke with Akre who is based in Middleburg, Virginia.
Q: What is your outlook for the U.S. economy?
A: In the U.S. today, unemployment is over 8 percent. If you look at unemployment numbers that include those no longer collecting unemployment benefits and those who have given up looking up for jobs, the real unemployment level is somewhere in the mid-teens. With an economy where gross domestic product is two-thirds driven by consumer spending, you can’t have robust growth with that level of unemployment. Also, access to credit is improving, but it’s still not like it was in the 1990s or 2000s. Third, the experience of 2008’s credit crisis put people on guard and they do not want to have as much leverage as in the past. Those circumstances define a more difficult environment. We've used the phrase, “the constrained consumer.” Periodic increases in food and energy costs exacerbate the problem.

Timminco - How Eric Sprott Got Solar Burn


They came to see the breakthrough.
That is, after all, what the company called it: a “breakthrough.”
What did it look like? How did it work, exactly? Did it even really exist?
They hoped the answers would be found in B√©cancour, Quebec, a weary industrial town–home to Quebec’s only nuclear-power reactor–that sits kitty-corner across the St. Lawrence from Trois-Rivi√®res.
It was here, they were told, that the breakthrough had been made. There were about 50 of them on the bus. Nobody talked much. Some had come from Toronto, others from New York, Boston, Connecticut–institutional investors mostly, along with a few analysts and a good sprinkling of hedge-fund types.
It was May, 2008. No one knew how much the world was about to change. Lehman Brothers was still a major player on Wall Street.

Athabasca Oil Halted On Rumour of $4 Billion JV With Kuwait Petroleum


Trading of Athabasca Oil Corp. shares was halted in Toronto following a report that Kuwait Petroleum Corp. will invest as much as C$4 billion ($4.05 billion) in a joint venture with the Canadian oilsands producer.
Canadian regulators imposed a temporary suspension of trading before the market opened today, which usually occurs in anticipation of a material news announcement. The shares fell 0.5 per cent to C$12.51 at the close yesterday, giving the company a market value of C$5 billion.
Kuwait’s national oil company will help develop Athabasca’s oilsands assets in Alberta, the Globe and Mail newspaper reported today, citing Kuwait’s Ambassador to Canada, Ali al- Sammak. The ambassador didn’t immediately return a phone message seeking comment.

Winner of US Election to Play Key Role in Canadian Industry


Whoever is sitting in the oval office come January will have a large say on the future of Canada’s energy industry.
The president of the United States will, of course, have no power to make decisions on behalf of a foreign industry. Yet just the knowledge of whether Barack Obama will win a second term or whether Mitt Romney gets to unseat the country’s first African-American leader to become its first Mormon leader could determine where Canada’s best energy customers will be found.

Wednesday, August 29, 2012

Penn West August Investor Presentation

Penn West August Investor Update

Penn West CEO Writes A Letter to Shareholders

pennwest_lettertoshareholders_aug2012

Don Coxe - Invest In What China Needs To Buy


The Energy Report: You are famous for taking the long view of the political economy, Don. What does the machinery of history tell us about the likely future of the Western world as measured against the newly industrializing economies, including China, India and Brazil?
Don Coxe: For the first 17 centuries of the so-called Christian Era, China and India together generated about 40–50% of global gross domestic product (GDP), due to the sheer size of their populations. But when they did not participate in the Industrial Revolution, the relatively small number of people living in Europe and North America were able to take over 70% of global GDP. The East stagnated.

Australia - A Credit Bubble, Built On A Commodity Bull Market, Built on a Chinese Credit Bubble

http://robertwiblin.files.wordpress.com/2012/04/2669c44ce7d924cec12579eb00385c14-html.pdf

Portfolio Holdings For Former Berkshire Investor Lou Simpson

http://www.dataroma.com/m/holdings.php?m=SQ

Tom Keene Speaks With Jim Grant

Impact of Middle East Unrest on Energy Prices

Harold Hamm - Shale Boom Happened Despite Not Because of Obama

World's Oldest Person (116 years) Offers Tips On Living Longer


Cooper isn't the only centenarian with tips to share on living an extended lifespan. In his book "The Blue Zones", author Dan Buettner identifies five zones in the world where people live significantly longer than everywhere else: Sardinia, Italy; Okinawa, Japan; Loma Linda, California; Nicoya Peninsula, Costa Rica and Icaria, Greece. Buettner carefully studied what the oldest people in these communities were doing differently, and compiled a group of characteristics shared by these populations.
Apparently, those who live the longest in the world have a particular way of doing things, including maintaining an active lifestyle, having a purpose in life, having strong family ties, being a part of a faith-based community, eating very little meat, drinking lightly but regularly, and eating until you are only 80 per cent full.

Daniel Yergin's Outlook For Oil

Yergin thinks that Geopolitical concerns and quantitative easing are the cause of high oil prices:

Tuesday, August 28, 2012

The Good And Bad In Romney's Energy Plan


Last week, Mitt Romney released a plan to reach North American energy independence by 2020 -- a possibility many believe is now plausible thanks to our booming natural gas and oil production. The platform involves opening up our coasts to more deep water oil exploration, handing over more control over leasing federal lands to the states, and approving the controversial Keystone XL pipeline, among other initiatives. 
There are plenty of reasons to be skeptical that we can ever actually drill our way to energy independence. But to get an expert take on the plan from someone who isn't skeptical, I called Citi's Edward Morse, whose own recent work seems to have influenced much of  Romney's proposal. His March study, "Energy 2020: North America, The New Middle East?" is cited six times in the campaign's white paper, including the projection that more domestic energy production could create up to 3.6 million new jobs.
Morse had mixed feelings about Romney's energy agenda, which he called a "significant step," but also "incomplete." This is a transcript of our discussion, edited for length and clarity. 

So what do you think of Romney's plan overall?

Chou Funds Semi-Annual Report 2012

ChouSemiR12p

Jean Marie Eveillard, Steve Romick, and Warren Buffett's High Roller Poker Game

Steve Romick (FPA Crescent) Semi Annual Letter and Report

Steve Romick (FPA Crescent) Semi Annual Letter and Report

Inside Warren Buffett

Taliban Beheads 17 Citizens for Dancing


Taliban Islamist insurgents beheaded 17 party-goers, 10 Afghan soldiers were killed and two NATO troops shot dead in a new insider attack in a bloody day across Afghanistan, officials said Monday.
The party-goers, including two women, were holding a gathering with music in a southern Afghanistan village.
"I can confirm that this is the work of the Taliban," the Helmand provincial governor's spokesman Daud Ahmadi told AFP. "Two women and 15 men were beheaded. They were partying with music in an area under the control of the Taliban."

The Secret of Bridgewater's Success - Understanding the Recession

Will we ever pull out of the Great Recession?  Why is it taking so long?
Let me tell you about a hedge fund group that has the best way to think about it that I’ve ever read.  But first, some history.
The Summer of 2008 is when things really started to hit the fan.
And now as the Summer of 2012 comes to a close, we’re four years into the Great Recession.  We’re also approaching the four year presidential administration mark, the point at which people ask themselves the famous question “Am I better off now than I was four years ago?”


Read more: http://www.businessinsider.com/bridgewater-deleveragfing-studies-2012-8#ixzz24qKpN0qq

Monday, August 27, 2012

Tap The SPR?

Aren't we awash in oil in North America?

Weird Louisiana Sinkhole

Article discussing: http://www.examiner.com/article/louisiana-activates-4000-national-guardsmen-securing-sinkhole-equipment

Flyover video:

Advantage to Clean House of All Non-Core Assets


CALGARY — Advantage Oil & Gas Ltd. said late Wednesday it will sell everything it owns except its Glacier Montney property and its shares in Longview Oil Corp., which it spun out in April 2011.
In a news release after markets closed, the former energy trust said it has hired RBC Capital Markets to offer for sale non-core assets which produced 6,700 barrels of oil equivalent per day (81 per cent gas) during the first half of 2012.


Read more: http://www.calgaryherald.com/business/Advantage+clean+house+core+assets/7130167/story.html#ixzz24leB1XAb

Pipeline Controversy Ignites Refinery Talks

VANCOUVER -- Whether they're crossing the border into the United States or heading west to the British Columbia coast, the controversial pipelines linked to the Alberta oil sands have one purpose: to get the thick, heavy bitumen out of the country.

Read more: http://bc.ctvnews.ca/pipeline-controversy-fuels-refinery-talks-1.931451#ixzz24ldKQVaV

Sprott's Rick Rule On the Energy Markets

Sunday, August 26, 2012

The Man Who Saw Gold In Alberta's Tar Sands


Sixty-one years ago, a lowly Calgary employee of U.S. multinational Sun Oil Co. wrote a subversive letter to the company brass in Philadelphia.
The message spit in the eye of his local managers in Alberta.
“I have long felt that our company should take a permit to explore for oil from the Tar Sands of Alberta,” 30-year-old Ned Gilbert wrote in September, 1951, in defiance of his immediate superiors, who opposed the idea of going any further than their first tentative steps in the area.

Canadian Oil - A Good Choice For Roller Coaster Fans


It has been among the most important uncertainties facing Canada’s energy industry, which has faced dramatically different views on whether Canadian oil is set for a big comeback, or mired in years of dismal pricing.
How about both? And how about both in just a week’s time?
After a terrible spring, Canadian oil traded for September delivery had quietly staged a huge rally. In the past few weeks, culminating on Monday, the synthetic crude oil that comes from oil sands operations equipped with pre-refinery-like “upgraders” sold for as much as $8 (U.S.) a barrel above the North American benchmark West Texas Intermediate.

Bill Ackman Has a Lot to Say About GGP

http://dealbreaker.com/2012/08/bill-ackman-has-a-lot-to-say-about-general-growth-properties/

Friday, August 24, 2012

Lisa Rapuano On The Making of a Successful Investment Firm

I Don't Think Al Roker Likes The New Team

Really great stuff Al!


Frozen Al Roker - watch more funny videos      


Saudi Oil Production - Where Would Oil Prices Be?

Where would oil prices be if Saudi Arabia hadn't raised production by 2 million barrels a day from 2009/2010 levels?

Romney Promises Energy Independence By 2020

This might be the first time that a incoming President could follow through on making a difference in reliance on OPEC thanks to the advances in unconventional oil.

Lance Armstrong to Be Stripped of 7 Titles

At this point I'd find it more newsworthy if one of these guys was proven NOT to be on some sort of performance enhancing drug.

http://ca.sports.yahoo.com/news/lance-armstrong-faces-big-decision-165515351--spt.html

Thursday, August 23, 2012

Squabble At The Mall - Ackman Takes On Brookfield


Another Canadian company is caught in a showdown with Bill Ackman, as Brookfield Asset Management Inc. faces off with the activist investor over the fate of one of the biggest shopping-mall owners in the U.S.
Mr. Ackman, best known in Canada for his successful campaign to turf the CEO and several board members of Canadian Pacific Railway Ltd. this year, wants the mall operator, General Growth Properties, to put itself up for sale to stymie what he says is a creeping takeover by the Toronto company. Brookfield owns 40 per cent of GGP; Mr. Ackman owns 10.

Monish Pabrai / Guy Spier - Hour Plus Value Investing Discussion

Thoughts From Faber, Sprott, Ron Baron and Pickens

45 Minute Presentation by Marc Faber to Institutional Investors on Current Opportunities and Risks

Precious Metals Guru Eric Sprott – The Financial Systems Death Knell?

The Number of Investment Opportunities Today Has Ron Baron 

Energy Guru Boone Pickens – A Simple Solution to Eliminate the Need for OPEC Oil

Sandridge August 2012 Presentation

Sand Ridge August Presentation

Wilbur Ross Discusses Natural Gas and His Investment in Exco

Wednesday, August 22, 2012

Man Pleads Guilty to Theft From The Buffett Foundation

Nice guy, he makes $190k per year and then steals from the charity:

http://www.omaha.com/article/20120821/NEWS/708219882/1685#man-pleads-guilty-to-theft-from-buffett-foundation

Grant's Interest Rate Observer Summer Break Issue

http://www.grantspub.com/UserFiles/File/Giro30_Summer12.pdf

Enercom Webcast Schedule

Lots of easy listening:

http://www.theoilandgasconference.com/webcast.shtml

How To Play the Market - Irving Kahn


There’s a huge number of people trading for themselves. You couldn’t do this before 1975, when commissions were fixed by law. It’s a hyperactivity that I never saw in the ’40s, ’50s, and ’60s. A commission used to cost you a hell of a lot; you couldn’t buy and sell the same thing 16 times a day.
You say you feel a recovery? Your feelings don’t count. The economy, the market: They don’t care about your feelings. Leave your feelings out of it. Buy the out-of-favor, the unpopular. Nobody can predict the market. Take that premise to heart and look to invest in dollar bills selling for 50¢. If you’re going to do your own research and investing, think value. Think downside risk. Think total return, with dividends tiding you over. We’re in a period of extraordinarily low rates—be careful with fixed income. Stay away from options. Look for securities to hold for three to five years with downside protection. 

Unconventional Oil Giant EOG August 2012 Presentation

EOGInvPres_0812

Devon Energy CEO Speaks

My usual apologies for subjecting you to Jim C:

Israel and Iran - On The Brink of War?

EOG's Papa Still Bullish on Oil Despite Growing American Production

I invested heavily in unconventional oil producers because of the combination of attractive valuations and rapid/sustainable growth ahead that they offered.

Now I'm worried that as a group they will be too successful and negatively impact the price of oil.

Thought I'd check in to see what Mark Papa had to say on the subject:

http://seekingalpha.com/article/821541-eog-s-ceo-mark-papa-is-still-bullish-on-oil-prices-should-investors-be-bullish-on-eog?v=1345636118&source=tracking_notify

Tuesday, August 21, 2012

Goldman Sachs Sees Brent to WTI Spread Narrowing

Yes please.


Aug. 21 (Bloomberg) -- The widening spread between U.S. and European crude is “not sustainable” as falling inventories at the storage hub in Cushing, Oklahoma, will bolster the price of the nation’s benchmark oil, Goldman Sachs Group Inc. said.
The bank, which said its earlier recommendation to buy West Texas Intermediate crude has made a loss of 10.8 percent, recommended investors buy WTI futures for delivery in June 2013, and sell those for Brent in anticipation that a pipeline from Cushing to the U.S. Gulf Coast will help reduce surplus inventories. WTI is at a discount of about $17.50 to Brent today, compared with $15 a month ago. WTI’s discount to Canadian grades will also discourage the import of crude that led to a build-up this year at Cushing, Goldman Sachs said.
“We continue to believe that the WTI-Brent spread will tighten significantly,” David Greely, a New York-based analyst at Goldman Sachs, said in an e-mailed report. “With WTI now pricing near parity or below Canadian grades, we expect flows into Cushing will slow, accelerating the draw on Cushing inventories and putting greater upward pressure on WTI prices.”

How Rising Well Costs Are Reshaping the Oil Patch


What’s the biggest generational shift in the oil and gas industry?
Don’t feel bad if you guessed either hydraulic fracturing, horizontal drilling or drilling multiple wells from the same location (pad drilling). Asian investment or rising production from the oil sands would be impressive choices. However, the answer lies where the bit hits the ground hardest - the capital cost of drilling a well.

Taylor Asset Management CEO Calls Peak Oil "Baloney"


http://www.theenergyreport.com/pub/na/14168?utm_source=delivra&utm_medium=email&utm_campaign=streetwise-reports%2008/21/2012%2014:10:04

Pimco's El-Erian Can't Get Enough TV Time - Here He Is Again

Gurufocus Interviews Donald Yacktman

Donald Yacktman, veteran investor and president and co-chief investment officer of Yacktman Asset Management Co., and Russell Wilkins, senior vice president portfolio manager, sat down with GuruFocus in their Austin office for an interview recently. The conversation spanned the most important keys to his career success to insight into his current holdings and predictions for the future. 

During the conversation, he used the word “long-term” many times. One got the feeling that his “long-term” is longer than the “long-term” of most others. Money managers like to use the word “long-term” to justify their recent underperformance, but Yacktman Funds’ shorter-term performance is just as good as its long-term performance.

Link to full article: http://www.gurufocus.com/news/187901/donald-yacktman-interview-with-gurufocus

We Are Still on the Slippery Slope to Peak Oil


IN 2007 former US energy secretary James Schlesinger claimed the arguments in favour of peak oil - the key theory that global production must peak and then decline - had been won. With production flat and prices surging towards an all-time high of $147 per barrel, he declared, "we are all peakists now".
Five years on and production has risen by 2.7 million barrels per day to 93 mb/d, prices have recently slumped to around $100 a barrel and those who dismissed the idea that the rate we extract oil from the ground must inevitably decline jeer in delight.

What Happens When a BattleShip Hits an Oil Tanker

Monday, August 20, 2012

Oil Sands Producers Could Feel Squeeze In Crowded Market


Alberta’s oil sands producers have some very ambitious output forecasts that could see them producing about a sixth of what OPEC now pumps out on a daily basis by the end of the decade.
But there are some potentially nasty roadblocks that could force the Canadian producers to slash millions of barrels per day from those targets, not the least of which is transportation.

Saturday, August 18, 2012

The Duvernay Vs The Viking


Follow the money. The adage applies in equal measure to prospective oil and gas plays as it does to darkened parking garages, manila envelopes and scandals involving the president of the United States.
Calgary-based junior Yoho Resources Inc. paid an average price per section of $20,000 to get into Alberta’s budding Duvernay shale, president and CEO Brian McLachlan told an investor forum this spring.
Today companies are forking over as much as $3.5 million for the same parcel of land, he says. Below is a look at how the Duvernay stacks up as an oil play against a better known – but still developing – rival.

Friday, August 17, 2012

Media Mogul Proposes $13 Billion Refinery For Northern Gateway Oil


Media mogul David Black is proposing a $13-billion oil refinery for Kitimat, British Columbia, to process oil from the controversial Northern Gateway pipeline.
Black acknowledges he doesn’t yet have investors and hasn’t had buy-in from Enbridge, First Nations or the provincial government.
Black, owner of Black Press Ltd, said on Friday that the plant would process up to 550,000 barrels a day of crude at a site near Kitimat, the terminus of the proposed Northern Gateway line.
He plans to pay for the environmental assessment, but says he wants investors to come together to pay for the refinery.

Berkshire's Lieutenants Continue to Impact Portfolio

Having had a chance to take a much closer look at the changes that were made to  Berkshire Hathaway's (BRK.A)/(BRK.B) stock holdings during the second quarter, we continue to view the equity investment portfolio at the firm as a work in progress. While Warren Buffett  has had (and continues to have) an outsized influence on the makeup of the portfolio, as time goes on we are getting more and more glimpses of just how his two lieutenants--Todd Combs and Ted Weschler--will approach their own portfolios. With Buffett noting more recently that each of these two managers will be working with a "bank" of around $4 billion each (exclusive of any gains/losses on capital that has already been put to work), which is up from $1.75 billion each at the end of last year and $2.75 billion each at the end of the first quarter, we are seeing a far greater willingness on the part of the Oracle of Omaha to hand over more and more of the investment portfolio than we would have expected this early in the transition. The fact that Buffett has also been willing to sell some of his own legacy holdings in order to fund their stock investment portfolios speaks volumes, in our view, about how much faith he has in these two managers, with him even noting in a recent interview that Combs and Weschler have "terrific talent," and that Berkshire feels "very, very, very good about where we are now versus a few years ago in terms of successor investment management."

Continued: http://news.morningstar.com/articlenet/article.aspx?id=564858

Whitney Tilson on Berkshire Hathaway

Hofmeister - US Government Is Taxing People With High Energy Prices

Berkshire/Buffett Stock Purchases/Sales in Q2

Pretty sizable selling of Kraft, JNJ and Proctor and Gamble.

Still adding gradually to the IBM and Wells Fargo positions.

http://www.dataroma.com/m/holdings.php?m=brk

Berkowitz Analysis of His Sears Position

Bruce Berkowitz Case Study III - Sears Holdings

US Reliance on Saudi Oil Heads Back Up

HOUSTON — The United States is increasing its dependence on oilfrom Saudi Arabia, raising its imports from the kingdom by more than 20 percent this year, even as fears of military conflict in the tinderbox Persian Gulf region grow.

The increase in Saudi oil exports to the United States began slowly last summer and has picked up pace this year. Until then, the United States had decreased its dependence on foreign oil and from the Gulf in particular.

http://www.nytimes.com/2012/08/17/business/energy-environment/us-reliance-on-saudi-oil-is-growing-again.html?_r=1&pagewanted=all

Thursday, August 16, 2012

More Confusion On The Impact of Shale Oil

While posing some stirring prospects following almost a decade of dismal performance by non-OPEC supply, oil shales alone are simply not enough to offset the decline in other parts of non-OPEC and meet all the incremental demand growth. The scale of growth in U.S. output really needs to be put into perspective. North Dakota still only produces 0.5 million barrels a day, which in a weak year, incremental Chinese oil demand alone can consume all of and more. Does shale oil help the U.S. reduce its dependence on foreign oil? Yes, it does. But does it remake the U.S. into the next Saudi Arabia? No, at least not yet.

http://oilandglory.foreignpolicy.com/posts/2012/02/17/the_weekly_wrap_feb_17_2012?page=full

Is Peak Oil Dead?


Is peak oil dead?
One might think so, judging by a slew of optimistic new forecasts for oil production. Even George Monbiot, notable for his thoughtful previous coverage of peak oil in The Guardian, threw in the towel with his July 2 mea culpa, “We were wrong about peak oil. There’s enough to fry us all.
Monbiot reversed his position after reading a new report by Leonardo Maugeri, an executive with the Italian oil company ENI and a senior fellow at a BP-funded center at Harvard University.
Maugeri forecasts new global oil production capacity of 49 million barrels per day (mbpd) by 2020, a number that is “unrestricted” by real-world circumstances, and “unadjusted for risk.” This constitutes a whopping 53 percent increase over the current claimed capacity of 93 mbpd in just eight years. While impressive, this headline number obscures some important details.
First, capacity is not production. The world has never produced 93 mbpd. Global oil production was 88.3 mbpd in 2011, according to the International Energy Agency (IEA), which uses a very liberal definition of “oil” that includes biofuels, non-associated natural gas liquids, and other liquids. Under a more restrictive definition used by the U.S. Energy Information Administration (EIA), which counts crude oil plus lease condensate (natural gas liquids that are produced and naturally associated with the crude), and liquids extracted from natural gas production, world oil production was 87 mbpd in 2011. Counting only crude oil and lease condensate, world oil production was 74 mbpd in 2011, a level it has maintained since the end of 2004 despite a tripling of oil prices since 2003.

Shale Oil Everywhere....for a while


The US is going to be free from the tyranny of imported crude oil soon, according to just about everyone. This is thanks to the wonders of shale gas extraction technologies being applied to sizeable and mostly untapped shale oil reserves. Previously marginal resources can now be economically extracted. Even the Europeans are getting excited about it. It’s a game changer.
You can probably guess what’s coming next…
Bernstein Research’s Bob Brackett (H/T Steve Levine) has an interesting note which examines the performance of shale oil wells in the Bakken formation. While the formation is in both Montana and North Dakota, Brackett narrowed his analysis to those in the former state.

CIBC Forecasts Huge Production Growth


CALGARY — Oil production in both Canada and the United States is set to soar by much higher levels in coming years than estimated by other industry forecasts, according to a report by CIBC researchers.

The 270-page “bottoms-up” industry update says estimates of conventional oil and oilsands crude growth in Canada are too low, implying that the need for further take-away pipeline capacity may be greater and become critical sooner than estimated.

The CIBC report figures that Canadian tight oil plays being tapped through horizontal wells and multi-stage hydraulic fracturing technologies could grow by an average of 10 per cent per year from 2011 to 2016 or roughly 100,000 barrels per day per year, then grow by eight per cent per year to hit 1.65 million bpd by 2020.


Read more: http://www.calgaryherald.com/business/CIBC+forecasts+huge+crude+production+growth/7100468/story.html#ixzz23l9eBWrK

The Man Who Saved AIG


One day you may be lucky enough to rent "Bobby's Cabana," a well-appointed cottage on a lavish estate just north of Dubrovnik, Croatia. It's where the estate's owner, Bobby, really gets to be Bobby -- innkeeper, wine maker, cancer survivor, restructuring expert, and corporate chieftain. And it's from there that Robert Benmosche (pronounced BEN-mo-SHAY) lights up the phone lines for several weeks a year as the CEO of insurance behemoth American International Group (ticker: AIG).
These are good times for Benmosche, 68. He recently marked his third anniversary as CEO of AIG. Second-quarter earnings jumped 27%, and last week, the company's largest shareholder, the U.S. government, whittled its stake down to 53%. Benmosche says he believes that a full exit might be possible by the end of 2013. That's an especially impressive feat given that the company was considered toxic as recently as two years ago.
How Benmosche restored a wounded AIG to health after the biggest bailout of the financial crisis is one of the great management stories of the new century: A tale of rallying the troops, intelligently downsizing, and managing often rocky relations with Washington.

The Duvernay Shale - Canada's Answer to the Eagle Ford


Not until you actually open the bottle, can the party truly begin. And in the case of Canada’s burgeoning Duvernay shale play, the cork is slowly being pulled, as industry players are waking up to the potential of Canada’s answer to Texas’ Eagle Ford.
The comparisons between the two shales are warranted: They have comparable thickness of pay zones; they both have similar porosities in the 3-12% range; and both have estimated reserves of well over 2 billion barrels. But the vintage of the Eagle Ford play in terms of exploration activity is four years older than the Duvernay.

Risk Builds As Junk Bonds Boom



Money market funds pay next to nothing. Interest rates on United States Treasuries are dismal. The volatile stock market has been dead money for more than a decade.
But on Wall Street — as the old saying goes — somewhere, someone is making money. And these days, that somewhere is junk bonds.

http://dealbook.nytimes.com/2012/08/15/risk-builds-as-junk-bonds-boom/

Wednesday, August 15, 2012

Israeli Ambassador To USA - Israel Survival Imperiled By Nuclear Iran

Israeli Citizens Say Government Serious About Iran Strike

“Our leaders seem to have gotten very hawkish in their speeches and this time it seems they mean what they say,” said Yoram Lands, 68, a professor of business administration, who was picking up new masks for himself and his wife at a distribution center in the mall.

http://www.businessweek.com/news/2012-08-14/israel-plans-for-iran-strike-as-citizens-say-government-serious

Contango Announces CEO Peak to Go on 6 Mth Medical Leave

http://www.businesswire.com/news/home/20120814006629/en/Contango-Announces-Medical-Leave-Absence-Chairman-CEO

Connacher Sells Refinery - Continues Search for Partner/Buyer

http://www.calgaryherald.com/business/energy-resources/Connacher+sells+Montana+heavy+refinery/7089414/story.html

Interview With Energy XXI CEO

Apologies for subjecting you to Cramer, but I wanted to hear what this gentleman had to say:

Monday, August 13, 2012

Leuthold's CIO Bullish On Gold Prices

Northwest Territories Oil Play as Large as the Bakken

Sounds good, but what would be the per barrel cost of development in the NWT?

http://www.calgaryherald.com/business/energy-resources/Northwest+Territories+play+Bakken/6955053/story.html


Profiles of Jamie Dimon and Harold Hamm

Romney’s Energy Guru -The Bakken Billionaire Harold Hamm

122 Minutes with Banking Guru Jamie Dimon

Sonde Resources Share Price Getting Whacked On This

Mr. Schanck concluded with, “We drilled three oil wells at Michichi and drilled and cased our inaugural well in the Montney. We anticipate early hook-up and production tests on these wells that will provide operating cash flow and an increase in our debt capacity. We will cautiously use part of our existing cash and draw upon our credit facility to maintain our liquidity. Sonde’s management has added a “going concern” emphasis paragraph to this quarter’s financial statements and disclosures. While we have cash and borrowing capacity, the uncertainty and magnitude of our North Africa obligations are daunting and we are making every effort to mitigate the going concern situation in future financial statements.”

Link to full release: http://www.sonderesources.com/2012/08/sonde-resources-corp-announces-second-quarter-2012-financial-operating-results-and-north-africa-update/

Technology is Tapping New Oil Supplies - But Can That Offset Rising Global Demand?


After nearly a decade of warnings that the world’s oil supply was running out, Americans now are hearing about technology breakthroughs that can unlock vast U.S. deposits of natural gas, help reverse a 40-year slide in domestic oil production and perhaps transform America into the next Middle East.
Despite the euphoria, there’s a major problem: The looming American oil glut may simply not be enough to sate the United States and the rest of motorized humanity.

Read more here: http://www.miamiherald.com/2012/08/11/2946593/the-next-great-oil-crisis.html#storylink=cpy

Billionaire George Soros Gets Married For the Third Time

He didn't ask me, but if he did I'd have to give it some serious consideration.

http://ca.finance.yahoo.com/news/billionaire-george-soros-getting-married-120937747.html