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I can not express how upset I am with what I saw so far today.
The injection into storage of natgas was 37 Bcf, the lowest for this week on record; yet natgas price dove off a cliff. The truth is Natgas should have broke $3 easy!
On the West Coast, prices rose substantially a few days ago as temperatures reached well into the 90s. The PG&E Citygate price in California rose by 50¢ over the report week, from $2.52/MMBtu to $3.02/MMBtu yesterday. Similarly, at the SoCal Citygate, prices rose 46¢, to $2.99/MMBtu.
And, then this week we come in with the lowest injection on record ever!
The 12-month strip, which averages the July 2016 through June 2017 futures contracts, also increased 6¢, to $2.980/MMBtu. Before settling Wednesday, the 12-month strip on Monday and Tuesday averaged more than $3/MMBtu for the first time since August 2015.
Consumption rises. Average consumption for the report week rose 3% according to data from PointLogic. This increase was driven by a 7% increase in consumption of natural gas for electric power generation. Power burn this week was 6% greater than year-ago levels. In the residential/commercial sector, consumption fell by 11%. Industrial consumption and exports to Mexico rose by 1% and 2%, respectively.
U.S. LNG exports. The natural gas pipeline flows to the Sabine Pass liquefaction terminal averaged 0.61 Bcf/d, 1% higher than receipts last week. One vessel (LNG-carrying capacity 3.2 Bcf) departed Sabine Pass terminal on June 20 and one vessel (LNG-carrying capacity 3.7 Bcf) is currently loading at the terminal.
Storage: Working gas fill continues at much slower-than-normal pace. Net injections into storage totaled 62 Bcf during the storage report last week, and only 37 Bcf this week. This is compared with the five-year (2011-15) average of 88 Bcf and last year's net injection of 77 Bcf during the same week. As a result, the surplus in storage compared with the five-year average declined from the previous week. The year-over-year storage surplus fell for the eleventh consecutive week. If this keeps up we will enter the winter heating season with the lowest storage ever!
I would not have believed what happened if I had not watched it with my own eyes! The storage report was strange like there was an increase a 37 Bcf in the injection over the estimate. It confused me and it also confused all the traders. Then I finally got confirmation that the total injection was only 37 Bcf and a friggin record low. I was sure natgas would pop to over $3, but it dropped $2.60 instead. Now... since 10:30 AM it has slowing inched it way back to $2.932 (up 0.069 cents).
I expect it will continue to inch up but I cannot for the life of me explain such a move other than some sort of huge market manipulation that I have never seen before. You can bet everything you have that the EIA is involved at the core of this manipulation. It also looks like make a fake mistake on purpose.
Honest to God, my I fall dead right now, 2016 breaks all records for the most crooked market I have ever seen in 40 years! Nothing in my memory compares to this much scamming and manipulation.
I still expect natgas to rise today or tomorrow but I'm lost to explain anything. It seems that everywhere we turn, we are subject to cheating. I can't even find two oil and gas reporting websites that agree with each other. Henry Hub is now $2.932 up .069 cents and moving up slowly.
Natural Gas Price Dips Following (Bullish) Storage Report
By Paul Ausick June 30, 2016 10:46 am EDT
The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks increased by 37 billion cubic feet for the week ending June 24. Analysts were expecting a storage addition in a range of around 48 billion cubic feet. The five-year average for the week is an injection of around 78 billion cubic feet, and last year’s storage addition for the week totaled 73 billion cubic feet. Natural gas inventories rose by 62 billion cubic feet in the week ending June 17.
Natural gas futures for August delivery traded up in advance of the EIA’s report, at $2.91 per million BTUs, and traded near $2.88 after the data release. Natural gas closed at $2.86 per million BTUs on Wednesday, its highest closing price for the past 5 trading days after touching $2.97 earlier in the day. The 52-week range for natural gas is $1.99 to $3.18. One year ago the price for a million BTUs was around $3.18.
On Wednesday natural gas prices rose to their highest level since May on forecasts of higher than normal temperatures across most of the United States through mid-July. The South and the West, including all of Texas, are expected to see temperatures in the 90s or higher, but more moderate temperatures are expected in the Midwest and East until early next week. Temperatures are on the rise all across the country, boosting demand for electricity to run air conditioning. Demand is expected to be high at the end of next week and into the week following.
Here’s how share prices of the largest U.S. natural gas producers are reacting to today’s report:
Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, traded up about 0.5% at $92.93 in a 52-week range of $66.55 to $92.98, and the high was posted earlier this morning.
Chesapeake Energy Corp. (NYSE: CHK) traded down about 3.5% at $4.26. The stock’s 52-week range is $1.50 to $11.90.
EOG Resources Inc. (NYSE: EOG) traded down about 0.2% at $83.24. The 52-week range is $57.15 to $89.52.
The United States Natural Gas ETF (NYSEMKT: UNG) traded up about 1.8% at $8.59 in a 52-week range of $5.78 to $14.17.
Read more: Natural Gas Price Dips Following Storage Report - ExxonMobil Corp (NYSE:XOM) - 24/7 Wall St. http://247wallst.com/energy-economy/2016/06/30/natural-gas-price-dips-following-storage-report-3/#ixzz4D56PHkJq
Follow us: @247wallst on Twitter | 247wallst on Facebook
Natural Gas storage injection was lowest on record for this time of year, but gas prices fell!
The latest weekly natural gas storage report from the US Energy Information Administration (EIA) recorded a storage increase of only 37 Billion cubic feet (Bcf), which was far below expectations of a build of around 48 Bcf and compared with an increase of 62bn Bcf injection on the previous week.
http://www.economiccalendar.com/2016/06/30/us-eia-weekly-natural-gas-inventories-rise-by-smaller-than-expected-37-bcf/
Natgas prices will rise as soon as the market understands the complicated trick pull on the traders by EIA. Just watch it slowly work back up!!!!
Oh My God.... The EIA... what a bunch of crooks. They have everyone confused. Natgas going up or down like a chinese yo yo. This is unbelieveable! They said the injection was 32 Bcf, which would break the low side record. BUT they do not announce the "expert analysts opinion" and they usually do. What a bunch of crooks.... they sure have nailed themselves to the cross this time.
It now looks like they will give their partner shorts a chance to clear before the announce the truth. They've had 30 minutes to do it... that's long enough! Now what?
This is far too strange. There is not follow-up news anywhere!
UNG up 5 cents. Natgas holding at $2.87
REAL MYSTERY INDICATING EIA IS CROOKED AND TAKING PAYOFFS TO MANIPULATING DATA!
market confused about EIA report. It looks like the report is saying injection at only 32 Bcf compared to 88 Bcf but the words they are used are new and confusing. natgas does not which to run because everyone confused. ha ha ha it could happen in the crooked USA!
EIA natgas injection only only 37 Bcf --- 51 Bcf below average but the market have trouble understanding what the EIA meant. Me too!
But Feeling.....
CHK is being manipulated down this morning to scare longs into dumping. They same group is also manipulation natgas price down. BUT... as we get closer to the 10:30 am release of natgas storage data, these cats will have to back off and start clearing their shorts.
I expect CHK and natgas to both start turning north about 10:15 AM.
Maybe I'm wrong; maybe I'm right! We'll know in about 20 minutes!
On the other hand, the EIA is maybe in on the scam. If so, they will announce a lower injection rate of about 60 Bcf and claim that this rate was 5 Mcf more than analysts expected so the 60 Bcf will look bearish, not bullish. This will send natgas prices down at least 10 cents giving the manipulators a chance to clear their short position. Then the bulls will realize that 60 Bcf is indeed bullish and natural gas will reverse itself quickly and could go over $3.
This is fun stuff for me to try to outguess the crooks. But I'm only guessing!
grilfriend, I dump 4,000 RIG at $1.00 profit, bought 2000 NOV and did the same thing. You're right, RIG not ready to run up too far. NOV is ready but I bought more CHK instead of hanging to NOV.
This could be the day natgas breaks $3!
Too bad CHK don't issue news releases declaring that primary profit (80%) is from natgas. The darn stock day trades far more with oil prices and seems to ignore gas prices. SWN trades with gas!
The day traders will run the price down today but I don't think this will hold very long. I'm hoping to close a few pennies about yesterday's close.
I hope oil traders leave soon. They must be making a lot of money. The way the stock moves daily reminds me of SWN.
I sent invester relation and email suggesting they do something. Maybe they will????
erdos47, maybe today is the day that natgas hits $3. Storage numbers come out at 10:30 AM and will positively move gas prices. We could easily bust $3 today. The question is will it hold or not? The giveaway will be the price movement starting when the market opens.
Don't be too worried when natgas dives in premarket trading. It's very easy for manipulators to short natgas in premarket as a way to worry longs into dumping out. This happens often. Best bet is don't dump in premarket unless you get the price you want. Wait until 10:30 AM when EIA releases the storage numbers. I think we will get a nice boost; I also think the smart traders know that the injection number will be low this week due to the heat we've had. I see a lot of buying early. I also see oil moving up as we get into the day. I see a close about where we open!
I do see a little cooler weather in the 10-day forecast. link But it don't look like enough to even put a dent of electric demand. We're headed into July and August, the hottest months of the year. I don't see no real relief from the heat coming our way.
Changed my ID from dwms07 to ogbull (oil and gas bull) because it better fits my investment strategy going forward.
EIA should release the natgas storage report today at 10:30 AM. But be careful. The actual injection might be low but the "expert estimates" might even be lower. If that happens, gas will crash momentarily until investors realize they've been tricked.
The trick is to show the "experts expected" amount lower than the actual amount injected to make the announcement appear bearish, when in fact any amount below the 5-year average of 88 Bcf is actually a little bullish.
The truth is working gas in storage was 3,103 Bcf as of Friday, June 17, 2016, according to "EIA estimates." This represents a net increase of 62 Bcf from the previous week. Stocks were 618 Bcf higher than last year at this time due to last year's warm winter. This is 678 Bcf above the five-year average of 2,425 Bcf.
On the other hand, the average injection is 88 Bcf per week over the last 5 years. My guess is we will see less than 60 Bcf this week --- very bullish regardless that the experts might have guessed 55 Bcf. We have no idea who these experts are and no idea of their real projection. If the EIA wanted to be honest, they would announce the "expert guesses" for next week when they announce that actuals this week.
Anyway, the extra amount in storage is no worry simply because gas producers have a record low number of rigs drilling gas plays. Chesapeake supposedly has 10 tier 1 (best rigs) drilling right now. This is extremely low BUT tier 1 rigs can drill long laterals (horizontal) holes in the shale rock. Right now, CHK is drilling 7,000-foot laterals, and plans 10,500-foot laterals by the end of 2016. This will drop the cost for natgas well-below $3/mmBtu and make natgas much more profitable.
The new tier 1 rigs are twice as fast as the old tier 2 and tier 3 rigs. What used to cost $1000 dollars a foot in now down to $500 per foot so it take less tier 1 rigs to do the job and they do it for a lot less money.
Still, the bottom line is that we have a record low number of tier 1 rigs available and working natgas. Most of them are working oil plays. On top of this, it will take at least 3 months to get these new wells into production. We should pass $3 within the next 2 weeks.
We should enter the end of the storage season at an all time low storage and unless something happens, we might even run slap out of natgas by the end of March 2017 and send natgas to $10/mmBtu for a short period.
Another problem is that weather is not doing what the experts said it would. The Pacific is now average temperatures. The talk now is volcanic activity slowed the falling temperatures and gave the wrong data to the experts. It now looks like we MIGHT be tending away from a mild La Nina and maybe towards a really bitter winter with lots of hurricanes and deep snow along the Atlantic coast and in the northern mid west. In other words, no one is sure what's really coming out way in the winter of 2016/2017.
I still call for CHK to hit $10 by mid-January 2017.
Transocean Norway Strike!
Transocean will not be affected by oil workers strike in Norway. They have already cut most Norway operations back in 2015.
$80 Oil Coming Soon?
A lot of smart investors think so: Link
Just bought back in! I'm an old RIG bull since 1993! I think its about time the offshore drillers started to get some business.
girlfriend, I can sense you are itching to argue about everything I say.
I spent 90% of my waking hours studying this stock and used to get great enjoyment out of bringing positive news to this board. Now I feel like all I am doing is wasting my time and energy. I have so many more extremely important projects begging for my attention so I think it would be best for me to leave the board to your control and direct my energy elsewhere.
In fact, you're not gonna believe this, but I have a project that stands a great chance on winning the Nobel Prize. The only reason I wanted to make sure CHK succeeded was because I need a lot of money to finish this work. Anyway, Chesapeake is to the point now that I would be foolish to waste any more time -- it will return a good profit without my cheerleading.
Bye bye and good luck to all!
It's ok if oil or gas drops to zero!
Chesapeake has hedged more than 590 billion cubic feet of its projected 2016 natural gas production at approximately $2.84 per mcf (about 10 cents above current prices) and more than 19 million barrels of its projected 2016 oil production at approximately $47.79 per barrel (about 21 cents about current WTI prices. Link
In other words, it does not matter to Chesapeake's bottom line if oil or gas drops to FREE. We will still get the hedged price, which is now above current prices.
Now don't make you feel better?
Chesapeake Improves its asset profile!
Chesapeake is continuing to accelerate the value delivery at Meramec through partial monetization of the asset for nearly $470 million, driving significant shareholder value.
In addition, the energy company is holding a solid position after strategic divestitures of non-core assets in 2016 with approximately 52,000 acres remaining in stack corridor and about 1.5 million acres outstanding in the Mid-Continent. Through this strategic capital preservation plan, Chesapeake has gained the opportunity to redirect approximately $100 million of accessible capital towards other key investment opportunities. Importantly, the unique monetization of Meramec has not impacted the company’s borrowing base.
The company is following a superior capital discipline program to preserve cash amid a tough global operating environment and thus, achieved 75% year-over-year decline in capital expenditure for the first quarter of 2016. Further, Chesapeake is well on track for achieving over 50% decrease in net capital spending for fiscal year 2016 compared to 2015. A bulk of 2016 estimated capital expenditure is focused on strategic DUC inventory write-down which is in line with the company’s continued commitment to optimize its financial position.
Chesapeake is also somewhat reducing its quarter-over-quarter production for 2016 compared to last year for uniquely preserving cash. The company targets on reducing G&A by 15% along with LOE reduction by 10% during 2016. Chesapeake has made significant progress in strategically achieving 28% or nearly $100 million year-over-year reduction in cash costs for first quarter.
The planned divestiture of non-core assets coupled with year-over-year reduction in energy production for the quarter aligns well with the company’s core strategy to preserve cash and minimize non-core expenditures sufficient to bring Chesapeake back on the path to profitability.
Strong assets
Chesapeake has approximately 8.0 million net acres available in developed and emerging leasehold in its well-diversified U.S. onshore asset portfolio comprising of Powder River Basin, Utica shale, Marcellus Shale, Mid-Continent, Barnett Shale, Eagle Ford Shale and Haynesville Shale.
The energy corporation is notably minimizing total F&D costs all through its asset portfolio while delivering continued capital efficiency growth and attractive cost improvements are projected for 2016.
The notably diversified asset portfolio of Chesapeake should give confidence to the investors about solid stock recovery as the global commodity demand and pricing conditions improve gradually and recovery unfolds completely. Moreover, the cost-optimization efforts of Chesapeake are expected to support the company in sustaining its daily operations profitably.
Chesapeake has strategically adopted a superior commodity hedging position to minimize losses in the globally weaker commodity pricing environment.
ADVANCED DRILLING IS HERE!
I have talked many times about the number of tier 1 rigs drilling gas plays versus the number drilling oil plays. Tier 1 rigs are in high demand and short supply because they are the only rigs that can drill the long lateral holes needed to bring drilling cost down and increase production for less money (more profit). But we have only 90 rigs working gas plays versus 400 working oil. This means that the majority of tier 1 rigs are already committed to oil plays. In other words, gas production could fall rapidly and catch us with only a few tier 1 rigs needed to drill the most profitable lateral wells. It would be financial stupid to drill a gas well with any other rig except tier 1. Said differently, we may well run out of natgas before the end of heating season. Sound crazy? I don't think so. And, I think you might agree if you read the news on the gas well drilled with the world's longest lateral.
Read it and you'll understand more of what I been saying for several months.
http://www.oilandgas360.com/shale-record-is-eclipse-resources-124-stage-purple-hayes-well-the-longest-onshore-lateral-ever-drilled/
We did great Friday!
The worst case scenario we just experience revealed strong buying support at $4.35! I see no reason why we will not remain at or above that support level over the next few weeks.
I also see the possible breakup of the EU as more countries will seek their freedom. The EU has dragged down our recovery and has hurt Europe in general. The problem is very simple. Humans want to live with their own clan; they do not want to live in a mixing bowl. We do respect the rights of others, but deep inside most of us want to live with our own gene base.
It takes many decades for one clan to grow accustom to a different clan.
Bottomline is that Donald Trump is right--people want to take their country back. He has also pledged to build the US oil and gas industry. His main theme here in ENERGY INDEPENDENCE! This specifically means slapping an import tax on all OPEC oil and gas and likely on all Chinese imports! America first... to hell with others!
So what does this mean to us as Chesapeake longs? It means we are invested in an American company supplying an American commodity sold mostly in America that has very little foreign competition. Furthermore, since our product is a necessity and not a luxury, we really don't need to worry about our customers tightening their belts. If they don't buy natgas, they will either freeze to death or have a heat stroke!
And, most of our production is hedged at profitable prices!
My crystal ball does not allow me to look more than a few months into the future so we still have to worry about such things as the weather, hurricanes, snow storms, our company's management team, and the disaster that Lying Hillary might win in November.
She has pledged to end fracking and put the American energy industry out of business. She has accepted many millions from OPEC countries simply because she PROMISED to destroy our ENERGY INDEPENDENCE. Her election will kill Chesapeake Energy so keep your finger near the sell button in October!
Other than that, I believe we have survived the worst possible scenario and will do just fine going forward.
Just don't let your guard down until we get to $10, then put in a protect sell order and start looking for a place to retire because $30 will not be far away. Natural Gas is the fuel of the future!
We are hedged!
Our oil is hedged at ~$47.50 and our gas at ~$2.76 so what do we have to worry about?
7.2 million shares in 30 minutes.... a rate of 10 million for the first hour. Looks like a 30 million day which is just fine. We have been under accumulation for 4-5 days. This brexit caught everyone by surprize but it sure brought the bargain hunters out in the open. There is a lot of money setting on the side waiting on brexit to explode. It blew up and we survived the worst of the blast.
There is also BIG MONEY looking to buy into the US shale business. No doubt we will get an buyout offer. I can say if it will be enough but I bet anything and offer is coming soon!
Crude oil is also slowing moving back up!
If this is the best shot brexit can throw our way, no big deal. We been here many times before! Maybe it would be a good idea if the EU broke up anyway. Europe is really holding back our recovery.
Looks like the shorts are hitting us ~$4.40 trying to knock the price back down to $4.35 or lower. No big deal. It might also be buyers pulling back to get more weak hands the chase them down. This is the best thing that can possibly happen. Seriously... the more shaky, nervous owners jump out, the more new investors we get in with longer horizons.
Frankly, I'm very proud of Chesapeake performance. It just go to show that there is demand for this stock and their soon will be sky-high demand for natgas and oil.
I really believe oil is going to $60 very soon and natgas is going to $5/mmBtu. And still believe CHK is on target for $10 in January 2017 not matter if Europe blows up!
Fantastic Buy!
I been glued to the news. Looks like the EU is talking tough, saying it will not give the UK a second chance to negotiate their decision. This sounds like a bluff, but I like it. The vote was only 48% versus 52% so that is not a wide margin. They might even call for a recount. They will have meetings all weekend and come up with a compromise. This brexit will get reversed and things will go back to normal.
I just don't see how it is going to hurt CHK. Investors are going to look at this as a buying opportunity, especially as the day wears on and the stock don't drop much lower than $4.25. Unfortunately for me, my bank transfer to buy more shares will not get credited until Tuesday and maybe not until Wednesday. The bargains will be gone be then.
I'm stretch out on margin as far as I can go right now so I can't buy anymore, dammit!
It's just simple common sense that what happens in the UK is not going to have much effect on Chesapeake. It might lower crude but CHK is a natgas play based mostly on the weather and the amount of gas injected into storage each week. Looks like we are injecting at least 20% less each week than 2015. In which case we will enter heating season with the lowest inventory in 10 years.
Natgas is down to $2.65 but this is short manipulators trying to run gas down in premarket to scare longs. It has happen every trading day for the last 10 days. The way it looks now, natgas will finish the day in the green and crude will make a come back as the day wears on.
I think we'll get our answer of what the day will bring just as soon as the market opens. High volume and rising prices will be bullish! Low volume and falling price will be bearish!
Global oil consumption increased by nearly 1.9 million barrels per day (bpd) in 2015. Most forecasters predict consumption will grow by another 1.5 million bpd in 2016 and a similar amount in 2017, which would make it the strongest sustained period of growth since 2004-2006.
http://www.rigzone.com/news/oil_gas/a/145200/Kemp_Global_Oil_Demand_Shows_No_Sign_of_Peaking
$1 Trillion looking to buy US oil and gas Producers!
________________________
LONDON, June 21 (Reuters) - The world's private equity funds, with a cash pile of around $1 trillion, are stepping up their interest in the oil and gas industry, with almost a half expecting to buy assets in the sector over the next year, a survey showed on Tuesday.
Funds' appetite for investments in the sector fell sharply after the start of the oil price route two years ago. But recent signs of a rebound, coupled with abundant assets around the world, are turning the tide, advisory firm EY said in a survey of 100 private equity (PE) firms.
Around 43 percent of the firms said they were planning acquisitions by the first half of 2017 and 25 percent before the end of the year.
"Activity will pick up at the back end of the year but people are still cautious," Andy Brogan, EY Global Oil & Gas Transactions Leader told Reuters.
"The fact that the oil price seems to be sticking is gradually making people more confident that they can make some bets."
PE firms, which typically seek high returns on investment, have a warchest of around $971 billion, EY said.
The expected pickup in activity, however, is likely to vary by region.
North America remains a focal point after a large number of assets was placed on the block as the shale oil and gas boom stuttered, including a rising number of distressed companies, Brogan said. Relatively accessible financing is also supportive, he added.
http://www.rigzone.com/news/oil_gas/a/145193/EY_Private_Equity_Warms_Up_To_Oil_Deals_With_1T_Warchest
Saudi declares oil price war with US is over!
http://qz.com/714622/saudi-arabia-has-declared-an-end-to-its-oil-war-with-the-us/
They are afraid Trump might get elected!
Girlfriend, I am still in! In fact I bought 2,500 more shares at $4.52 and have directed my bank to transfer 6 figures into my trading account with the idea of loading up on many more shares during whatever dip comes along on Monday.
Yes, the UK voted to exit the UN but the rules of the exit must be worked out with the EU over the next 2 years before brexit can officially take place.
Prime Minister Cameron resigned effective in 3 months and turns over the exit negotiations to a new Prime Minister after he leaves office.
This gives the EU 2 years to try to change the UK's mind. Whatever rule changes the EU offers UK to keep them in the EU must also be settled in a second referendum sometimes over the next 2 years. The second referendum is the only one that matters!
So... bottomline is NOTHING will happened over the recent vote that can not be reversed in the next 2 years! In other words, this recent vote really means absolutely NOTHING now!
The big objection the EU has is EU citizens from poor countries can migrate all over the EU and take jobs. This is the big thing that rich countries don't like. London is full muslims and even has a new muslim mayor. This pisses off the brits in the worse way.
So if the EU stops migration from poor countries to rich countries then the issue is settled and the UK will reverse its referendum and all will be well. This is easy to fix within the next 2 years!
On top of all the above, major banks around Europe promise to step in and invest in markets to stabilize any panic effect.
Therefore, brexit really makes no difference to Chesapeake whatsoever, especially for the next 2 years. Crude will likely drop maybe 3% today, but I don't think natgas will drop more than a penny or two. Natgas might even move up a little.
But we will get a taste of bullshit panic by stupid investors and likely take a hit. I hope it is for at least 10% so I can load up on some cheap shares come monday morning. If things work the way I see them, Chesapeake will be back up above $4.70 by the middle of next week.
What worries me is that institutions will step in and buy all the bargains today before my deposit becomes liquid on Monday. We might even close higher at the end of today. That would indeed piss me off! I have only enough dry powder to buy maybe another 5,000 shares but if there's drop, I'll get a margin call. I'll call my broker this morning and maybe work out a deal since my deposit will be there Monday.
Anyway, the problem is certainly not fundamental and does not involve natgas demand or prices. The problem is all phycological. As Roosevelt said at the start of World War Two, "The worst we have to fear is fear itself!"
The overall market wants to jump up in the worst way. I think we get that jump next week when people realize that this brexit does not occur for another 2 years!
Of course, every screwball short manipulator will be blasting away that doomsday has arrived!
Did everyone sell out?
Turned out to be a nice day. Picked up more shares at $4.52 -- ended up over $12,000 profit on the day. I figure tomorrow will be a better day. I see $5 coming soon. Anyway, thanks everyone for posting all the good news!
regarding last post: I had a power overload and my backup system shut my computer down.
The average weekly injection in 2015 was +88/Bcf per week throughout the entire storage season, so this week's injection of +62/Bcf was -26/Bcf Less than last year's average. But to shock the market and run the price of natgas down, the EIA says that their stupid experts expected only a +58/Bcf injection which would have been -30Bcf less than average for 2015.
Up to date injections for 2015 totaled 883/Bcf. In the identical 2016 period, a total of 504 Bcf have been injected.
This was supported by market manipulators that knew the timely of the announcement and instantly shorted the natgas market running the price down 0.051 cents. This is the kind of OBVIOUS market manipulation that disturbs the hell out of me, especially coming from the EIA, a government agency responsible to tell the public the truth.
Instead... they played a trick on investors for a few dollars payoff from the manipulators!
Everything you come in touch with from wall street is a fu-king lie!
Natural gas will come back and the manipulators will make money on the move and so will the employees of the EIA.
Anyone, except for idiots, would know that a storage report -26/Bcf less than the average for 2015 is indeed extremely bullish for natgas!
THIS WILL BE MY LAST YEAR TRADING STOCKS!
EIA Natural Gas Inventory: +62 Bcf vs. +58 Bcf analyst expected, +69 Bcf last week.
What a joke.... average 5 year injection 89 Bcf.... more piss ass markey minipulation
CHK TAKEOVER BID COMING!
Use your head. If you are a major with deep pockets (like GE Oil and Gas) the best way to get into the oil and gas business and take advantage of the upcoming shortage of natgas and the coming boom in oil prices is to buy out the number #2 gas producer in the US (Chesapeake Energy). If you delay making an offer, the more it is gonna cost. But if you make a takeover bid of say $15 share, share holders might (?) sell out to you.
On the other hand, if you drag your feet until August, it might cost you maybe $25 or more.
I say a takeover bid comes very soon! GE Oil and Gas number one suitor!
Tokyo City Buys Stake In Eagle Ford Shale!
Now you can bet your butt off that Japan will be exporting a lot of LNG from the US! Demand on natgas will skyrocket! This is the results of the opening of the new deeper Panama Canal cutting a lot of expense for US natgas to travel to Japan!
BIG NEWS FOR LNG DEMAND!
http://oilpro.com/post/25276/japan-largest-city-gas-supplier-buys-stake-eagle-ford-shale?utm_source=DailyNewsletter&utm_medium=email&utm_campaign=newsletter&utm_term=2016-06-22&utm_content=Article_17_txt
Natgas can be cleaner than wind, solar, or nuclear!
Imagine... natgas cleaner than wind, solar, and nuclear in 10 to 15 years. In other words, natgas might become the cleanest cheapest energy earth will ever produce.
Here's how it works: Build electric power plants near coastal area with nearby basaltic rock formations. Carbon dioxide is highly soluble in water and has the potential to be involved in chemical reactions that form common minerals like calcite. Although recognized as a possible mechanism for sequestering carbon dioxide it has been generally understood that the rates of mineralisation would be very slow. A new study by a multidisciplinary research group working in Iceland injected CO2 and water together into old basaltic lava flows and sediments (400 to 800m depth). They discovered that about 95% of the injected CO2 had reacted over a two-year period with Ca (calcium), Fe (iron) and Mg (magnesium) dissolved from the basalts to form stable carbonate minerals. The overall cost of this process is significantly less than standard CCS methods because it avoids the physical separation of captured CO2.
In other words, the exhaust from gas turbines powering electric generators is pumped into the basaltic rocks and the CO2 turns to stone.
There are even other ways to inject the CO2 into the ground to force oil deposit to come to the surface.
In other words, we could use the exhaust produced by burning natgas, oil, or coal to produce electric power clearer and more attractive that a field of solar panels or wind mills!
All our cars, buses, trucks, and trains would be hooked to an electrical third rail. Airplanes would be replaced by electric trains running on high-speed rails or in tunnels under the sea.
http://oilpro.com/post/25243/geological-trappings-carbon-capture-and-storage?utm_source=DailyNewsletter&utm_medium=email&utm_campaign=newsletter&utm_term=2016-06-22&utm_content=Article_12_txt
More BS from the Manipulators!
"Our rating on Chesapeake Energy remains HOLD as the company struggles to generate cash flow, manage its heavy debt load, and adapt to a lower commodity price environment," Coleman wrote in a note.
"Despite these signs of progress, we believe that Chesapeake will continue to face significant headwinds during a period of low commodity prices," the analyst added.
Coleman forecast that West Texas Intermediate crude will average $40 per barrel in 2016, down from $50 in 2015 and well below the average of $93 in 2014 and $98 in 2013. Oil prices can be volatile, and they could range between $25 and $55 per barrel in 2016.
So... his forecast is for oil to hit $25 --- this guy is another wacko trying to buy CHK on the cheap side. His biggest mistake is not to consider that Chesapeake is the 2nd largest US gas producers behind exxon by only a few cubic meters. Its exposure to oil in minimal! Eighty percent of its income is from natgas which is just about to break into 5-year high. How stupid is it to try to fool Chesapeake investors with nonsensical lies? Analyst make me throw up! Wall Street is nothing but a giant nest of liars and con artists.
Read more: http://www.benzinga.com/analyst-ratings/analyst-color/16/06/8141088/argus-research-still-forecasting-a-loss-for-chesapeake-e#ixzz4CNwkclC1
U.S. crude oil production is expected to continue its decline in the coming few months. The recent small uptick in U.S. rig count will not matter because few U.S. crude oil producers have started drilling activities. Instead, they are start to clean DUCs wells. But we have to understand a very important point.
Cheap DUCs were most drilled to increase the company's loan value so they could borrow more money to keep the lights on. Moving these cheap DUCs into the production takes time. In the best case, it would take at least three months before new output comes online. There is usually a lag between a price signal and production impact of about 4 to 7 months. In the meantime, we will still hear news of increasing rig counts. However, its impact on oil prices and the declines of U.S. crude oil production will be meaningless until months later.
WTI will soon hit $60!
The IEA increased its forecast for oil demand growth in 2016 from 1.2 million barrel/day to 1.3 million barrel/day as a result of higher than expected growth in oil demand in the 1Q16.
Given the current positive oil market outlook for the second half of 2016, and taking into account the above four factors; weaker U.S. dollar, augmented outages, drawdowns in U.S. crude inventory and declines in its oil production, oil prices are set to go higher in the coming weeks. Unless an unexpected negative event takes place, oil prices will be above $60/bbl by August.
The same story holds true for natgas.
Chesapeake will hit $6.50 by about the same time WTI hits $60! Natgas will also hit $3.50 or $4.00 at about the same time.
By January 2017, Chesapeake will hit $10 share!
Experts agree--brexit is a nonevent for oil and gas!
http://oilpro.com/post/25279/brexit-impact-oil-prices?utm_source=DailyNewsletter&utm_medium=email&utm_campaign=newsletter&utm_term=2016-06-22&utm_content=Article_3_txt
CHK needs to rise above $5.50 before the real buying will start because:
#1. Below $5 is still considered a dangerous stock to own.
#2. Many brokers will not margin stocks below $5.
#3 Buyers often avoid mutual funds with $5 stocks.
#4. Many older investors consider $5 stocks as high risk.
#5. Day traders love stocks below $5 because they are usually more volatile. In turn, day traders bring a lot of volatility to share prices that discourage long term investors.
#6. Stock under $5 are easier to manipulate.
These are all physiological and technical reasons. There are no fundamental reason to shy away from a stock below $5 as long as the Market Cap is relatively high.
There is a possibility down the road that Chesapeake will do a reverse split and offer one share for two. I think this would be a good move, but on the other hand, maybe not. I think if we were at $9 now, we'd move up much faster. What I am certain of is that when CHK reaches $6, the increase to $10 will be much faster. In fact, I think it will take the same time for us to reach $6 from our current price of $4.50 as it will take us to reach $10 from $6.
Just don't let the manipulators scare you away no matter what happens. Natgas is the bridge fuel for the next 3 decades--don't get chicken and run away. You will be SORRY if you do!
Will brexit hurt Chesapeake stock?
Some say it will crush brent oil prices by dropping trade between UK and EU. I don't see it possible. I see a temporary scare factor running down share prices and a rise in the dollar dropping oil prices. But I see this as only temporary, maybe for a week?
And I damn sure do not see the EU going broke because the UK leaves. Maybe is 2-3 years, the EU will decide to dissolve itself but this is more likely to boost the US rather than kill our oil and gas prices.
After all, Chesapeake in mainly a US natgas producer. It stupidly trades a lot on oil prices but this will soon disappear.
I do think the ceasefire in Nigeria will bring lower oil prices, but there is still risk of further attacks on oil facilities. The deal, reported in local media, was not immediately confirmed by state oil company NNPC. If there is a drop it will not come for at least a month.
On the other hand, I see an offset for shale oil and gas prices! The expansion of the Panama canal is set to open next Sunday. This will allow larger oil and gas tankers to pass out of the Gulf of Mexico and into the Pacific, lowering transportation cost of our oil and gas exports to asia and China. The expansion will double the canal's capacity, tap new markets and cut US global maritime costs drastically -- a big boost for LNG exports.
I also see Venezuela crashing any week now.
In my opinion, brexit will be only temporary. Best advice is don't dump out because a lot of smart long term investors will be looking to buy your shares cheap.
Down 11.5 cents is not bad considering the big drop in natgas and all the fear in the market over Brexit!