Got Gas? U.S. Economy to Worsen as Gas Prices Skyrocket

[dmcowen674]

3-7-2013

http://news.yahoo.com/natural-gas-company-shares-jump-181038477.html

Natural gas company shares jump on supply data



Chesapeake, Southwestern, other natural gas shares surge on data showing drop in supplies



Shares of companies that drill for natural gas jumped Thursday after the government said that U.S. supplies of the fuel dropped last week.



The Energy Department's Energy Information Administration reported that natural gas in storage shrank by 146 billion cubic feet to 2.083 trillion cubic feet in the week ended March 1. Analysts expected a draw of 130 billion to 134 billion cubic feet.



Natural gas supplies are now 15 percent below year-ago levels.

Cabot Oil & Gas rose $2.44, or 3.9 percent, to $64.66. The shares set an all-time closing high of $63.40 on Friday.

 

[Londo_Jowo]

3-7-2013

http://www.cnbc.com/id/100530572?__source=yahoo|headline|quote|text|&par=yahoo

Berkshire's Oil Hauling Railroad Tests Switch to Natural Gas


The domestic oil and gas drilling boom has made oil more plentiful and gas abundant and cheap. The oil is locked in the mid-Continent, awaiting new pipelines, but it already is moving on trains.


Natural gas is now cheap enough to be considered as a fuel for locomotives and other vehicles.

BNSF CEO Matt Rose said the railroad now ships 525,000 barrels a day and expects that to grow to 700,000 barrels by the end of the year. Shipments could reach 1 million barrels in the next 18 months.

"Over the last several years, we've been working with our two rail engine suppliers, General Electric and Caterpillar, and we believe they have some real solutions"

Rose said the company plans to pilot a program for an LNG engine and will work with policy makers and regulators to seek approval over the next year.

"This would be the largest transformation since from the steam locomotive to the diesel locomotive," he said. If approved, the engines would reduce emissions and provide more competitive rail product versus the highway, he said.

Are you really reporting on something that's good for a change?

 

[Doppel]

Lol his only response to uncomfortable discussion is to simply spam articles nobody reads.

 

[dmcowen674]

Check out the Oil Thugs brazenly open plans for raping America:

3-7-2013

http://seekingalpha.com/article/125...permajors-but-policy-fight-looms?source=yahoo

Marathon Petroleum Closes In On The Supermajors



Marathon Petroleum (MPC) is a refining, marketing and transportation company, with headquarters in Findlay, Ohio formed in 1998 from a merger of the downstream operations of Ashland, Inc., and Marathon Oil (MRO). In 2011, Marathon Petroleum was spun off from Marathon Oil.


MCP Distribution Chain
MPC maintains refineries in Robinson, Illinois; Canton, Ohio; Detroit, Michigan; Garyville, Louisiana; Catlettsburg, Kentucky; and Texas City, Texas. It is the nation's fourth largest transportation fuels refiner and largest in the Midwest, with a capacity of 1.69 million barrels-per-calendar-day and 86 light product and asphalt terminals. MPC's marketing network currently spans over 6,100 locations

Rising Star
Compared with Supermajors like BP (BP) and Exxon (XOM), MPC may seem like the uppity, pugilistic-prone kid on the block. In reality, MPC is running circles around Shell, BP, Chevron, and Citgo in terms of domestic refining capacity.


Conclusion
Holding both MRO and MPC is essentially a long dated call option on higher energy prices. MRO offers significant alpha from increasing cash flows based on decreasing costs of capital, ample reserves, and rising domestic production.



MPC's refining operations allow shareholders to cash in on high gas prices going into the summer driving season.

 

[OverVolt]

^

Sounds good to me? You can always invest and join the party :awe:

 

[Londo_Jowo]

Gas has dropped another $0.04/gal yesterday afternoon at the station where I fill up. Currently $3.51/gal.

http://www.texasgasprices.com/Shell_Gas_Stations/Richmond/113096/index.aspx

 

[Londo_Jowo]

I look for Marathon to buy any profitable refineries from Hess as well as the gas stations they're shutting down.

 

[Doppel]

Oil has steadied, gas will now, too for the time being.

i said this on 2/26 and according to gas buddy I was exactly right even to the day; gas is on the decline.

 

[Londo_Jowo]

i said this on 2/26 and according to gas buddy I was exactly right even to the day; gas is on the decline.

Oh noes, you're in trouble now. You will be flogged for stating such.

 

[allisolm]

According to Gasbuddy the average US gas price one year ago was $3.71 and rising while today the average US price is $3.68 and falling.

 

[dmcowen674]

According to Gasbuddy the average US gas price one year ago was $3.71 and rising while today the average US price is $3.68 and falling.

So what's your point?

 

[Londo_Jowo]

So what's your point?

His point is that things are not as bad as you wish they were. Prices have stabilized and actually coming down. As in no drive for $5.

 

[Doppel]

Just got word from a friend that the domestic Oil Company Thugs have sprung a plan to pull out of the retail business in the U.S. to replace with Foreign owned operations. They expect to at least quadruple gas prices and profits.

I'll post more when I get more info.

This will be huge.

Bump. Just wondering if Mcowen's "friend" had anything further to say about this quadrupling of gas prices.

 

[Londo_Jowo]

Bump. Just wondering if Mcowen's "friend" had anything further to say about this quadrupling of gas prices.

Without a doubt his "friend" doesn't work for gasbuddy or AAA.

 

[dmcowen674]

More on how the Oil Thugs are raping America and reaping bigger profits than ever before:

3-10-2013

http://beta.fool.com/crenauer/2013/03/10/crack-spread-scramble/26182/?source=eogyholnk0000001

The Crack Spread Scramble



Valero Energy is the world’s largest independent refiner. This behemoth has had a terrific run up of over 150% over the past 3 years, but still appears somewhat undervalued. As of March 1, it was trading at just 1.43 times book value, with an earnings yield of just over 8%.

Refining petroleum into conventional gasoline is Valero’s main operation, but this Texas based giant does much more. Its refineries produce a wide range of products, including jet fuel and ultra-low-sulfur diesel fuel.

Valero has taken on a great deal of debt over the past several years to become a larger and more efficient company. It spent nearly $3 billion building three Hydrocracker facilities that can use cheaper natural gas as a feedstock to produce diesel fuel. The first of these came online in December 2012, and is so far a success. The company also operates several ethanol refineries and a wind farm.

HollyFrontier is a refiner that serves markets primarily in the Midwest, Southwest and into the Rockies. This independent refiner has the advantage of transporting and storing much of its crude feedstocks through a network of pipelines run by Holly Energy Partners, L.P., which helps to explain how it manages to deliver a return on invested capital of over 23.3%.

HollyFrontier’s Q4 2012 earnings came in below average analyst expectations, and the Texas-based company's share price has been a bit choppy since they reported. Even though it was a slight miss, this highly profitable company also appears undervalued. It is trading at just 1.7 times its book value, with an earnings yield of 14.7%.

A look at HollyFrontier’s balance sheet makes it look even more attractive. This financially responsible company has a debt to equity ratio of only 0.2. Its TTM net income of $1.73 billion is more than enough to pay off 100% of its $1.34 billion in long-term debt. A current ratio of 2.7 and a 2.2% dividend yield make this downstream gem a prime candidate for my next long position.

In June 2011, Texas-based Marathon completed a spin off of its Ohio-based refining and marketing segment. Marathon Petroleum and its parent can trace their roots all the way back to 1887, when it was called the Ohio Oil Company. It was even purchased in 1889 by the infamous Standard Oil trust. It has merged and split and changed its name along its 125 year journey.



Over the past 12 months, U.S.-based Marathon Petroleum has gained over 101%.



As of March 1, 2013, the company was trading at a slight discount with an earnings yield of about 11.6%. Net income for fiscal year 2012 came in at $3.38 billion, an increase of 41.8% over 2011. The company has proved that it can quickly grow earnings during an advantageous crack spread period. If the current crack spread, and gasoline and diesel margins narrow in the near term, Marathon Petroleum’s debt to equity ratio of 1.25 would become a serious concern.

 

[Engineer]

Gas down to a "still high" $3.59 in Lexington. I expect it to level off close to where it is and then resume upward for Spring/Summer. We will see.

 

[cybrsage]

I long for the $1.89 prices when Bush was president.

EDIT: or the $0.95 prices when Bush Sr. was president.

 

[OverVolt]

Gas down to a "still high" $3.59 in Lexington. I expect it to level off close to where it is and then resume upward for Spring/Summer. We will see.

Yea what I've been saying all along, if these are the lows then that is pretty scary.

 

[dmcowen674]

Gas down to a "still high" $3.59 in Lexington. I expect it to level off close to where it is and then resume upward for Spring/Summer. We will see.

Well they said they are shooting for $6 to $8 this year.

I would expect places like Chicago at $8 while Texans hang around $6 as usual.

 

[Londo_Jowo]

Well they said they are shooting for $6 to $8 this year.

I would expect places like Chicago at $8 while Texans hang around $6 as usual.

Who is they? Several experts and the AAA have stated that that gas prices have already hit their peak this year.

 

[Engineer]

I long for the $1.89 prices when Bush was president.

EDIT: or the $0.95 prices when Bush Sr. was president.

Gas was $0.59 in Lexington (and $0.49 in Corbin Ky) when Clinton was President and oil was $10.25 per barrel. Why not want those instead?

 

[tgferg67]

I long for the $1.89 prices when Bush was president.

EDIT: or the $0.95 prices when Bush Sr. was president.

Selective memories...
U.S. retail historical gasoline prices in 2008(Bush) - note the lowered prices in the last part of 2008 relative to the financial crisis.
Jan $3.109
Feb $2.978
Mar $3.162
Apr $3.332
May $3.613
Jun $3.976
Jul $4.114
Aug $3.88
Sep $3.68
Oct $3.484
Nov $2.4
Dec $1.811

 

[WhipperSnapper]

I long for the $1.89 prices when Bush was president.

EDIT: or the $0.95 prices when Bush Sr. was president.

Didn't the first large gas spike occur when Bush Jr. was President?

Some people will tie themselves into pretzels to blame Obama for all of our problems.

 

[dmcowen674]

3-11-2013

http://finance.yahoo.com/news/bahamas-govt-allow-offshore-oil-230508876.html

Bahamas gov't to allow offshore oil exploration



Offshore oil exploration will be allowed off the Bahamas, the environmental minister said Sunday


Offshore drilling is sensitive in the Bahamas, where many fear a spill could devastate the fishing and tourism industries.



Geologic surveys say 5 billion to 9 billion barrels of oil may lie off Cuba's coast.



The private Bahamas Petroleum Company hopes to begin exploration in a block about 60 miles from (97 kilometers) from where the Russian company is drilling off Cuba, according to CEO Simon Potter.

 

[Londo_Jowo]

Well they said they are shooting for $6 to $8 this year.

I would expect places like Chicago at $8 while Texans hang around $6 as usual.

The EIA doesn't agree with your "They".

http://www.eia.gov/tools/faqs/faq.cfm?id=287&t=10

What is the outlook for gasoline prices for 2013 and for 2014?

EIA's projection, as of February 12, 2013, for the average retail price of regular-grade gasoline for February through December 2013 is $3.57 per gallon. The projection for the average retail price in 2014 is $3.39 per gallon