Economy & Politics

US OIL PRODUCERS EXPANDING MARKETSHARE ON TO ASIA

Bozeman MT – September 23, 2017- The US shale oil industry’s first battle with OPEC was on American soil, and as we reported the US won and OPEC is not in control of price anymore. US Domestic crude production forced cartel members such as Saudi Arabia to seek new buyers in Asia. However, revealing of the current situation world’s oil traders are gathering in Singapore for the Asia Pacific Petroleum Conference (https://10times.com/appec) US producers are coming in high numbers and the US presence is massive.

L6NRG ANNOUNCES THE LAUNCH OF L6NRG MONTANA I, L.P.

Bozeman, September 13, 2017, L6NRG, LLC ("L6NRG") is pleased to announce the launch of L6NRG Montana I, LP (the "Fund"), a 200 Million limited partnership formed under the laws of the State of Delaware. L6NRG will provide investment advisory services to the Fund and as General Partner will manage the Fund.

WHY IS IT MAKING SENSE TO INVEST IN US OIL & GAS?

In late 2016 and early 2017, Blackstone Group made one of its biggest bets on the growth of natural gas production, wagering that even if gas prices remain stuck at depressed levels, it can profit. Blackstone has been splashing out on natural gas. The firm recently agreed to pay $1.57 billion for a 32.4% stake in the Rover Pipeline. The private-equity firm has built a roughly $7 billion bet on natural gas by investing in drilling fields, pipelines and a gas export terminal.

IMPACT OF TRUMP ADMINISTRATION ON THE PRICE OF OIL

President Trump’s withdrawal from the Paris Climate Accord might be good for the Oil Industry but will erode the price of oil even further as the perception is that drilling permits will become easier to obtain. During the first week of June, Brent crude fell 1.8% to $49.71 a barrel on London’s ICE Futures exchange and the West Texas Intermediate futures were trading down 1.9% at $47.44 a barrel.

GEOPOLITICS & OIL PRICE IN A TIME OF TRANSITION

“In addition to being good for our economy, boosting domestic energy production is in America’s national security interest. President Trump is committed to achieving energy independence from the OPEC cartel and any nations hostile to our interests. At the same time, we will work with our Gulf allies to develop a positive energy relationship as part of our anti-terrorism strategy.” Is an abstract of the publication on the White House web site on President Trump’s “America First Energy Plan”

Is this statement contributing to keeping the price of oil below $55?

OPEC Reaches consensus on an “Understanding”, Really?

OPEC on Wednesday reached a consensus on an “understanding” to cut crude-oil-production to lift petroleum prices but the cartel will wait until November to finalize a plan and a commission was created to analyze the best path to lift up the price without creating havoc on the markets…

TRADE AGREEMENTS A TOOL FOR PEACE & PROGRESS

The Trans-Pacific Partnership (TPP) signed at the end of last year writes the rules for global trade between 12 nations: Australia; Brunei; Canada; Chile; Japan; Malaysia; Mexico; New Zealand; Peru; Singapore; United States; Vietnam.

LATIN & SOUTH AMERICA OIL SITUATION SHAKEN BY LOW PRICES BRAZIL-VENEZUELA-COLOMBIA-MEXICO

Venezuela, Brazil and Colombia are the three largest producers of hydrocarbons in South America. The past year depressed oil price created havoc and the status of Latin & South American Oil industry is precarious. Let’s review the situation in Brazil, Venezuela, Colombia and Mexico.

OIL VOLATILITY & WALL STREET STRATEGY

Volatility in Oil prices and a Barrel below $30 in February scared the banks that turned away from lending to energy companies. The price of crude has bounced back nearly 80% from its February low to settle around $45.00 a barrel but lenders are still wary.

Big banks cut loans to the energy sector by about 3% in the second quarter over all and some individual lenders pulled back much more, according to the Wall Street Journal.

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