Energy Archives
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The Secret Way in Which Our Enemies Use Our Infrastructure

by Dr. Kent Moors | published October 4th, 2016

Every year I present a briefing to a select gathering of ambassadors, officials, and energy executives at Windsor Castle outside London.

These Windsor Energy Consultations take place under a royal charter granted by Queen Elizabeth II.

One of the great traditions of these meetings is a behind-closed-doors briefing for ambassadors from around the world, held in the castle dungeon and intended for frank and open exchanges.

During my 2015 briefing, I revealed a controversial, under-the-radar crisis in global energy infrastructure. Since then, things have only gotten worse…

It’s already feeding into a global wave of violence…

And now, at long last, it’s being taken seriously by the international community.

But it may well be too late…

Congress Just Sent an Open Invitation for Real Energy Profits

by Dr. Kent Moors | published April 28th, 2015

Thanks to a rare example of bipartisan legislation that just cleared Congress, the energy efficiency push is on again.

Called the “Energy Efficiency Improvement Act,” the bill passed the House of Representatives last week after having been approved by the Senate.

The final bill was a very watered-down version of the idea first proposed.

But that is almost always what happens when Congress seeks the lowest common denominator. Reminds me of the old adage defining a camel as a horse designed by a committee.

Even though the legislation that now awaits a presidential signature turned out to be somewhat less grandiose than initially anticipated and is short on tangible specifics, as a first step it will do. And it’s going to open the doors to some real profit opportunities.

Here’s my take on the new bill… and where the best opportunities lie…

This is a Clear Path to Profits (Even in Volatile Markets)

by Dr. Kent Moors | published January 28th, 2014

It was quickly becoming OPEC’s worst nightmare. By the mid-1980s, oil prices had begun to collapse.

What’s more, renegade cartel members were selling more oil than their monthly quotas allowed, which merely made a bad situation even worse.

Ordinarily, that’s was a point when the Saudis usually would step in and cut their own exports.

But by then, the pricing situation had become untenable. Instead, the Saudis embarked on a bold new strategy.

First, they opened up their own spigots and flooded the market with crude. This taught those recalcitrant OPEC members a big lesson about lost revenues.

Second, they also introduced a “netback” pricing strategy that proved to be far more important – both for them and today’s energy investors.

This new strategy considered the entire pricing sequence, using refinery margins (the difference in cost between processing and prices on the wholesale level) as a measure of prices upstream and downstream.

Now, twenty-eight years later, the same netback strategy has made a comeback that has handed us a clear path to profits – even during periods of high volatility.

Here’s how this strategy works…

Two Ways to Cash in on Energy Security

by Dr. Kent Moors | published January 16th, 2014

Today, I want to talk about to you about a new investment opportunity.

It’s in energy security, and I have two money-making ways for you to play this trend.

It stems from the accelerating need to protect the production, transport, and distribution of our newfound wealth in oil and gas.

This point was hammered home yesterday with the release of Oil Security 2025: U.S. National Security Policy in an Era of Domestic Oil Abundance.

The 108-page report is the inaugural effort of the Commission on Energy and Geopolitics. Admiral Dennis Blair, former Director of National Intelligence and Commander in Chief, U.S. Pacific Command; and General Michael W. Hagee, 33rd Commandant of the U.S. Marine Corps, served as co-chairs.

Not surprisingly, the report reflects matters I have discussed before.

They include: the rise of security issues surrounding new domestic oil finds, increasing geopolitical tensions and the changes in the energy balance, both from a supply and a demand perspective.

In this case, the transition of supply from conventional to unconventional sources, combined with a new emphasis on domestic U.S. production, certainly has both global and security considerations.

But it’s the changes on the demand side that are even more striking…

Part Two: How to Profit as the Energy Balance Shifts

by Dr. Kent Moors | published January 9th, 2014

On Tuesday, I told you how “energy rebalancing” is going to hand us some profitable new opportunities this year.

In Part One, I introduced you to three different dimensions of this unstoppable trend, but I focused only on the big changes happening in the energy network.

Several of the examples I used were global in nature and provide a great segue into the final two dimensions of energy rebalancing: The changing geographic considerations and financial arrangements.

Of course, “geographic considerations” refers to location.

And the three I mentioned on Tuesday – the Russian ESPO pipeline, European imports of liquefied natural gas (LNG), and China’s rapidly expanding presence in the South American energy picture – are perfect examples of the evolving geographic picture.

Yet, the geographic also introduces two other main elements.

That includes a dramatic shift in the balancing point in global energy markets, which means that where the demand is will drive the energy markets.

In this case, demand has moved significantly from North America and Western Europe to the developing world in general… and Asia in particular.

This trend will become even more pronounced in 2014…

The Best “Energy Intel” From Rio de Janeiro

by Dr. Kent Moors | published November 21st, 2013

If this is Thursday, it must be…Brazil.

I returned home late last night from Baltimore where we were putting the final touches on a huge new precedent-setting energy investment play we’ll be releasing very shortly.

But Marina and I are now into a very hectic travel schedule.

As you read this, we are on the first flight leg down to Rio de Janeiro. We are returning on Thanksgiving, only to turn around the next day and be off to Moscow. (Otherwise we would have had to pack for two very different climates!)

There are more trips in December. And I am not even thinking about what’s happening in January and February yet.

The reason behind this travel frenzy is the rapidly changing global energy balance. It’s one that will require a revision in our overall energy outlook.

All of which, will allow us to bring you a series of profitable new investment moves.

However, back to Brazil and the reason behind my meetings this weekend…

Why "Cheap" Domestic Energy is Creating a New Dawn for America

by Dr. Kent Moors | published August 22nd, 2013

After 40 years of empty promises, the prospect of U.S. energy independence has finally become a real part of the national conversation.

In fact, if current production trends continue, the United States will overtake Saudi Arabia and Russia as the world’s largest oil producer in 2017, according to both the U.S. Energy Information Administration and the International Energy Agency.

But this stunning reversal of fortune is only half of the story.

The other side of the coin is that those same domestic energy supplies are going to have a major impact on global trade.

According to a study released this week by the Boston Consulting Group (BCG), “cheap” domestic energy could result in the U.S. taking between $70 and $115 billion in annual exports from other countries by the end of this decade.

This will provide significant economic advantages to America as this new era is ushered in.

And it will open up huge potential returns for average investors…

Two Oil & Gas Game Changers… This Morning

by Dr. Kent Moors | published January 23rd, 2012

Two major events rocked the oil and gas sector this morning.

But they weren’t tied to ubiquitous market volatility or natural disasters.

These were intentional – each a result of human decisions.

Whatever the cause, the result is that we are we are off to the races… and you and I have the opportunity to benefit nicely.

The Embargo Has Begun

First, the European Union (EU) in Brussels passed its anticipated oil embargo against Iran.

The EU also froze assets of the Iranian central bank in Europe. I have recently commented on what this action would mean to the oil markets, even if Tehran does not make good on its threat to close the strategic Strait of Hormuz.

Closing the strait, even for a short time, would lead to the quickest rise in oil prices on record.

But the likelihood of that taking place is uncertain. Iran, after all, gains 80% of its income from oil exports. They would experience a steep financial cut by their own hand.

More certain now are the major crude oil pricing issues that would result from withholding Iranian crude from the European market.

And that one will be happening.

Profit From the First Biofuel Winner – Before It Goes Public

by Dr. Kent Moors | published January 29th, 2010

Weeds are hardly my favorite flora. My hay fever doesn’t like them and neither does my lawn. But a flax called camelina – needing little nitrogen and water – may just be the first big winner in renewable biofuels.

It is going to provide investors with a whole new way to play the renewable energy market. And its impact will be, quite literally, up in the air.

Anybody who flies has been feeling the pinch of exploding ticket prices. Having jetted over a quarter of a million miles in the last 18 months, I can attest to the connection between rising fuel prices and ticket hikes. And without a major change in how we source jet fuel, this problem will simply get worse – especially with ridership slowly returning as the crisis bottoms out.

Jet fuel is already imported in greater volume, and the refineries that can provide it reliably worldwide are limited. That’s because refining puts jet fuel (which is really high-level kerosene) among the so-called “middle distillates” – along with diesel and low-sulfur heating oil. But prioritizing the need for high-octane gasoline (“light distillates”) has taken up more of the available refinery capacity.

They’re producing less diesel and jet fuel than the market requires, pushing up the price.  
And jet biofuel may be an answer.

It’s hardly theoretical.

The Top Five Natural Gas Companies to Watch

by Dr. Kent Moors | published December 24th, 2009

NEW YORK – I’ve briefed Wall Street before. This time, however, the 57th floor conference room is packed. Some heavy hitters invited me to explain why natural gas is the upcoming energy play.

By the size of the crowd, it seems the word is getting around.

The last time interest was this high, natural gas contracts on the New York Mercantile Exchange (NYMEX) were racing past $14 and the dominant players were making a fortune. We’re about to see them try it again. Exxon Mobil Corp.’s (NYSE: XOM) recent acquisition of shale gas producer XTO Energy Inc. (NYSE: XTO), for example, is only the first of several moves we’re about to see as the sector shakes itself out again.

This time, however, average investors can move early and reap the benefits.