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A New Stage in U.S. Shale Gas Development

by Dr. Kent Moors | published November 4th, 2011

Yesterday, Chesapeake Energy Corp. (NYSE:CHK) announced that it was completing two land-leasing deals – on property in the Utica Shale basin – worth as much as $3.4 billion.

Chesapeake will bring in an “international major energy company” to jointly develop some of its Utica acreage. The company is not naming the major, but says the deal should be completed next month.

This marks the beginning of a new stage in shale gas development.

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The Narrowing Spread Means Higher Crude

by Dr. Kent Moors | published October 31st, 2011

As you read this, I will be in Baltimore, huddled with the Oil & Energy Investor editorial team to discuss some interesting new developments.

That trip may well be followed rather quickly by a flight to Frankfurt, Germany, for meetings on a potentially major push in the European approach to a rapidly changing energy landscape.

I will keep you in the loop on both.

However, today, we need to talk a bit about an important matter unfolding in oil…

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What the European Debt Accord Means For Oil

by Dr. Kent Moors | published October 28th, 2011

Yesterday’s huge move up in the markets was an expression of relief, if nothing else.

After months of frustration, an accord is coming over the debt crisis in Europe. It will unfold along the lines I suggested.

But what does this mean for the oil sector?

First off, we need to understand what has actually happened. And that, as it turns out, is not easy. Much of the details in the debt package still need to be worked out.

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An Unlikely New Supporter for Alternative Energy

by Dr. Kent Moors | published October 24th, 2011

During a biofuels conference at Mississippi State University last week, Navy Secretary Ray Mabus announced that his branch would be leading the charge to lessen the Defense Department’s (DOD) dependence on fossil fuels.

This involves a rather large chunk of traditional fuel usage.

On average, the federal government consumes about 2% of the fossil fuels used in the U.S. However, the DOD accounts for about 90% of that.

With the Obama Administration emphasizing a move to alternative and renewable fuel sources, Mabus is signaling that the military is on board.

Well, sort of.

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How the Eurozone Crisis Will Play Out

by Dr. Kent Moors | published October 21st, 2011

The global markets are likely to remain within a narrow range of light trading today.

That’s due to the now almost certain extension of the European discussions over the debt crisis.

But the meeting in Brussels on Sunday will not resolve the matter…

What’s required is an accord between France and Germany. And for that, with such political opposition in both countries, some rather fancy dancing is needed.

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M&A Heats Up in the MLP Sector

by Dr. Kent Moors | published October 17th, 2011

The announcement Saturday by Kinder Morgan Energy Partners LP (NYSE:KMP) that it was acquiring El Paso Corp. (NYSE:EP) is shaking up the pipeline picture today.

The $38 billion deal involves cash, stock, and warrants (with KMP also absorbing about $17 billion in EP debt).

It will create the largest pipeline holding in the country, the fourth-largest company in the U.S., and by far the largest midstream service company.

It is this last factor that will have the biggest impact – for two reasons.

Natural Gas Q&A: Lies, Damn Lies, and Statistics

by Dr. Kent Moors | published October 14th, 2011

It has been a while since I responded to your many emails.

So, as we await the latest developments in the European debt mess, today seems like a good time to answer a few. This time around, I am addressing some of your questions and comments that deal with natural gas.

By the way, my staff and I read all of the input and feedback you send our way, and we’re very grateful for it. Please email me at customerservice@oilandenergyinvestor.com. (I can’t offer any personalized investment advice, but I can address your questions and comments in future broadcasts.)

Let’s get started…

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How OFS Stocks Predict the Oil Market

by Dr. Kent Moors | published October 10th, 2011

O n Friday, I gave you two signals to watch out for in the energy sector recovery (s ee “My Two “Forward Indicators’ for the Energy Sector,” October 7) – oil field services (OFS) and midstream companies.

Given the spurt taking place in the market today, I want to return to one of these “forward indicators” – the OFS sector – and discuss what has happened there over the past several trading sessions.

You’ll see why I always keep an eye on these guys…

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My Two "Forward Indicators" for the Energy Sector

by Dr. Kent Moors | published October 7th, 2011

The past few days have found Marina and me here in White Sulphur Springs, West Virginia, at the splendid Greenbrier Hotel. This place harkens back to a time of grace and elegance. Few other locations in the country can match its history and charm.

At the moment, it is also the location of The Oxford Club’s Fall Regional Meeting.

I always like these get-togethers, because I get the chance to meet with some of my subscribers and hear what is on your minds.

For most of the people I’ve spoken with over the past few days, I’ve heard something other than a simple complaint about unstable markets and Greek debt problems. Perceptive investors understand that volatility and rapid price changes – the hallmarks of the current energy sector – cut both ways.

Yes, these news items do increase risk. But that risk also provides significant opportunities to generate profit.

In fact, there is a prevailing attitude of optimism among those congregated here.

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Renewable Energy and Government Subsidies Go Hand in Hand (for Now)

by Dr. Kent Moors | published October 3rd, 2011

The Obama Administration is coming under fire for providing subsidies to renewable energy sources – such as solar, wind, and geothermal. And not for the first time.

The latest tiff results from a $528 million loan to Solyndra LLC. Despite the federal funds, the private, California-based solar panel maker went belly up on September 1, Chapter 11 bankruptcy protection, and laid off every one of its more than 1,100 workers.

U.S. Secretary of Energy Steven Chu has gotten more political flak from the loan program in recent months.

Political opponents claim it is an example of government waste in the making. Adding to the fodder are several other government-supported projects in geothermal and solar that are under pressure, too.

Since 2009, Washington has doled out some $16 billion in 28 loans. The Energy Department says this loan money has resulted in 60,000 jobs.

However, with $6 billion being committed in only the last few weeks (to beat a September 30 budgetary deadline), disasters like this one with Solyndra are something best avoided when Chu speaks on renewables.

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The Power Sector Shakeup

by Dr. Kent Moors | published September 26th, 2011

We just wrapped up our first Small-Cap Energy Summit. The five-day cruise from Vancouver to Los Angeles was one of the most rewarding times I can remember in my life.

Our workshop sessions presented the opportunity for informal and personal conversations on a range of investment subjects. I got to spend significant time with a great group of Oil & Energy Investor subscribers. And your very thoughtful questions and comments (and some lively exchanges) only made the experience better.

Actually, we could not have done this in any other way. As I’ve said, given the low market capitalization of these companies, releasing them to all my subscribers would have both buried the companies and guaranteed that most members could not even get in at a decent price.

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The Polish Energy Revolution Begins

by Dr. Kent Moors | published September 19th, 2011

As you read this, I am flying back from Poland, shortly to grab another flight on to Vancouver for our first Energy Summit cruise starting Wednesday.

I am genuinely excited about spending four days with many of you, as I lay out our strategy to profit – big time – from small- and micro-cap energy companies in the months ahead. (To that end, I’m taking a few days off, so there will be no Oil & Energy Investor mailing until next Monday.)

For now, though, major news has emerged during my stay in Poland.

At about 9:30 yesterday morning, the nation formally embarked on a new energy course – one whose impact will be felt throughout Europe and beyond.

Visiting the first advanced drilling site in eastern Poland, Prime Minister Donald Tusk committed the country to extracting shale gas beginning in 2014. This will fundamentally transform the nation’s energy prospects.

Now, Tusk and his government are in the run up to a parliamentary general election (the voting takes place on October 9), and the country’s energy situation has been a visible campaign issue.

Back in Krakow, the prime minister’s press conference was broadcast live at our shale gas conference. (Funny – it actually interrupted a panel I was on devoted to how the shale gas revolution will affect localities and regions.)

Turns out, the Polish shale picture is more significant than even I was anticipating…

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