Major Commodity Earnings This Week: Big Oil On Tap
As earnings season draws to a close, the commodity world will see, arguably, its most publicized week. The next five days will feature earnings from some of the biggest oil firms in the world, with a few other companies sprinkled in. Investors will be especially keen to see how the recent spike in oil prices has impacted these major producers. Below, we outline some of the most prominent commodity firms slated to report earnings this week [for more commodity news and analysis subscribe to our free newsletter].
What Obama’s Energy Plan Means For Commodities Investors
After years of environmental acts dying in Congress, President Obama is taking action by finally outlining a green plan for the U.S. Calling a press event at Georgetown University earlier this week, Obama discussed his goals: reducing carbon pollution, promoting green energy, and cooperating with both developed and emerging economies to ensure global involvement. Many on the Hill have already objected to Obama’s goals and his use of executive orders to avoid Congressional approval, saying that the American worker will lose in this plan [for more commodity news and analysis subscribe to our free newsletter].
How Natural Gas Could Save The Environment (And Your Portfolio)
Since the industrial revolution, growing economies around the world have turned to fossil fuels for a relatively cheap power source. This dependence on non-renewable resources has only increased in the past few decades, but so have the environmental arguments against them. One of the biggest arguments against burning fossil fuels is the harmful emissions that come as a side effect. But while many lump all fossil fuels together as being “dirty” energy sources, one stands out from the rest: natural gas [for more energy news and analysis subscribe to our free newsletter].
The Case Against Fracking
Hydraulic fracturing, or “fracking”, has become one of the fastest-growing methods for tapping into abundant shale reserves held within the U.S. The process works by pumping fracturing fluids-like slickwater, gel or foam–into a wellbore at a sufficient enough rate to fracture the rocks below. When these fractures occur, the operator injects proppants into the well to prevent the fractures from closing when the fluid pressure is reduced. And finally, oil and gas leak from the fractures into the well for extraction. But the revolutionary process is not without its drawbacks, as many criticize the side effects caused from fracking. Below, we outline the case against fracking and why a number of people have rallied against this rapidly-developing energy extraction method [for more fracking news and analysis subscribe to our free newsletter].
Buy Crude Before The Summer Rally
One of the most attractive features of the commodity space is its cyclical returns. While it may make it difficult for long term investors, traders who know the patterns of certain hard assets can often turn a nice profit simply based on the natural price movements of different commodities. Crude oil is no exception to such patterns, as savvy investors have been profiting from the fossil fuel’s trends for years. Though crude has been exhibiting weakness with questions about its long-term future, its short-term seasonal trend may be a ripe opportunity for traders everywhere [for more crude oil news and analysis subscribe to our free newsletter].
Big Oil Earnings to Dominate This Week
Crude oil has been among the worst-performing commodities this year as hefty production has combined with a number of other factors to send the fossil fuel lower. That being said, a number of bellwether oil firms will be detailing their most recent quarter’s earnings this week, as investors are anxious to see how lower prices have impacted bottom-line returns. Below, we outline five of the biggest oil firms to report earnings this week, and commodity investors should watch them closely [for more oil news and analysis subscribe to our free newsletter].
Natural Gas Catching Fire
High daily volumes coupled with erratic and sometimes unpredictable movements have given natural gas a big name in the commodity world, along with a reputation as a risky investment. With NG jumping more than 20% year-to-date and still climbing, many analysts are looking for a spark behind these gains, and they’re wondering how long the trend will last [for more natural gas news and analysis subscribe to our free newsletter].
A Visualization Of U.S. Crude Oil Consumption
The U.S. has long dominated crude oil consumption around the world, as the insatiable need for the fossil fuel has long powered the economy. According to EIA estimates, the U.S. gobbles up around 18.9 million barrels of oil each day, or about 7 billion per year, the highest such figures in the world. While the nation may be close to supporting itself in terms of domestic oil production, it still will not change the fact that the U.S. relies more heavily on crude than any other country in the world [for more oil news subscribe to our free newsletter].
How Big Oil Is Drilling For Cheap
Big oil firms often come under fire for receiving everything from favorable tax treatment to government subsidies to conduct their business. And now it appears that another factor can be added to that list, as Representative Edward Markey of Massachusetts has begun pushing for a legislation change. The laws that he seeks to amend favor drilling royalties for some of the biggest names in the industry, with over 100 companies taking advantage of the policy [for more oil news and analysis subscribe to our free newsletter].
