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there is no doubt that the need for what ddcc can supply will not stop. the future needs for energy will not stop. this is encouraging for ddcc and their ultimate success in this market.
it should be obvious to all, as it is to the pundits, that oil has found a bottom here, and that worries about a further decline in prices are no longer a factor. ddcc again finds themselves in a favorable and improving position.
Oil Prices Extend Recent Gains
U.S. Refinery Strike Pushes Up Prices for Petroleum Products
4 COMMENTS
Oil prices gained for a fourth straight session on Tuesday as a U.S. refinery strike pushed up prices for petroleum products.
Product prices have climbed in recent days on concerns that a strike at some U.S. refineries would cut fuel production. Refineries also typically close units in February and March to perform seasonal maintenance, which can boost product prices. Retail gasoline cost $2.07 a gallon, on average, in the U.S. on Tuesday, AAA said, up about a penny from Monday.
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BP is the first major oil company to book a quarterly loss amid slumping oil prices, but investors are focusing on the positives. Sarah Kent reports. Photo: Getty Images
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Higher product prices are boosting crude-oil prices on the expectation that refineries may buy more crude to take advantage of better margins. But the global crude market is still oversupplied, analysts say, and the rally may not be sustainable.
“Oil products continue to rally,” said Phil Flynn , analyst at the Price Futures Group, in a note. Though the refineries affected by the strikes say they will use nonunion labor to keep operating, “many are not certain if the refineries over the long run can maintain output,” Mr. Flynn said.
Already, Tesoro Corp. announced plans to idle one refinery in California during the strike to perform seasonal maintenance.
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U.S. crude oil for March delivery rose $1.00, or 2%, to $50.57 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose $1.35, or 2.5%, to $56.10 a barrel on ICE Futures Europe.
Refineries are seeing better profits for turning crude oil into gasoline and other products, because there is more storage space available for oil products than for crude oil, according to London consulting firm Energy Aspects.
ICE gasoil was especially strong Tuesday, trading up 4.4% at $535 a metric ton. “In an oversupplied market, discounted crude oil is…reviving the profitability of European refineries,” boosting gasoil prices, said Energy Aspects.
Gasoline futures rose 1.1% to $1.5617 a gallon, while diesel futures traded up 2.5% at $1.8005 a gallon.
Data released Friday showing a sharp drop in the number of rigs drilling for oil in the U.S. have also boosted prices. Some traders expect the cutback in drilling to lead to lower U.S. production, reducing the global glut of oil.
Gareth Lewis-Davies, an analyst at BNP Paribas , said investors were encouraged by the U.S. rigs data. But as the lag between falling rig counts and falling output is up to nine months, the price gains may not be sustained, he said. Global supply is still exceeding demand and crude-oil stocks will continue to build for some time, he said.
RBC Capital Markets on Tuesday cut its Brent crude forecast for this year to $57 a barrel from $71 a barrel and lowered its Nymex crude forecast to $53 a barrel from $65 a barrel.
I have also gotten the same response, and it is obvious we have had delays in the past. I too would like to be seeing solid news come out, but it is always better to see completed deals come out rather than premature new releases.
no doubt, and just wait and see what the watch does when it is introduced to the market
it is only a matter of time until ddcc is rewarded for the work it has done
this is all very encouraging for ddcc.
the energy sector will eventually and inevitably reward ddcc
perhaps a bit unrealistic?
the aggregate commodity shipping aspect has great implication for the agriculture sector.
note that the energy market may be leveling off, good news for ddcc.
this is another good sign for the sector that ddcc is catering to.
i searched also, here is another article which illustrates the point. ddcc has the solution to the rail industry problem.
MN utilities plan coal shortage stratgies as rail network struggles to keep up
DULUTH, Minn. -- Four northern Minnesota power units will be fired up again after a more than two-month shutdown in the face of difficulties obtaining shipments of coal by rail.
By: Peter Passi, Forum News Service
DULUTH, Minn. -- Four northern Minnesota power units will be fired up again after a more than two-month shutdown in the face of difficulties obtaining shipments of coal by rail.
Two units at Minnesota Power’s Laskin Energy Center in Hoyt Lakes were restarted last week and the Duluth-based company pledges to fire up two more coal-burning generators at its Taconite Harbor facility in Schroeder before Jan. 1.
The generators were idled as part of a conservation strategy, explained Pat Mullen, Minnesota Power’s vice president of marketing and corporate communications.
Mullen said the company took steps to avoid a potential re-emergence of problems it encountered last winter when the Burlington Northern & Santa Fe Railway failed to deliver the coal needed to sustain operations.
Minnesota Power is far from the only entity that has struggled with rail freight service, as increasing quantities of oil and natural gas move by tanker car down the tracks, often displacing traditional cargos.
“We asked: How do we protect our customers? Because last year, we had a very similar thing happen,” Mullen said.
“We were very short on coal going into the winter last year, with assurances from the railroad that did not materialize. And we were caught short on coal in December and January, when it was so cold that we were actually buying energy on the market at very high prices. We knew going into this winter we did not want to repeat that,” he said.
The increased costs were passed on to customers, large and small.
At Minnesota Power’s request, a senior executive from the BNSF visited in March to explain the situation directly to some of the company’s hardest-hit large customers, including several players in the mining industry.
“This had gone too far. We were really disappointed in the level of service we were getting, and for us just to share with our customers that — jeez, we’re disappointed — wasn’t enough,” Mullen said. “We wanted them to understand that we were doing everything we could on their behalf. So we had a senior executive from the BNSF come in here special to address our largest customers to help them understand what they were doing, why they were doing it and what commitment they were making to solve this problem.”
Mullen said BNSF did respond and stepped up service in the spring.
“But then it slowed way down through the summer, to the point where it became alarming again as we got into late July and early August, which triggered us to set up a proactive plan to make sure that we protected our customers this winter,” he said.
When it shut down units at Laskin and Taconite Harbor this fall, Minnesota Power was able to buy electricity at prices so favorable that Mullen said: “It wasn’t far off of a wash, in terms of what we paid for the energy and what we saved on the coal.”
“There was a gap there, but it wasn’t huge,” he said. “It was a reasonable cost to protect our coal reserves for much colder weather. And so we did start to rebuild our inventories back up.
Ideally, Mullen said, Minnesota Power would maintain an on-hand coal inventory sufficient to allow for 25 to 30 days of operation, and while it hasn’t quite reached that threshold, he characterized the current supply as “adequate.”
“I really do feel confident about where we are and where we’ll be for winter, assuming that the railroad will keep the schedule they’ve assured us they will,” he said. “The only caveat is that if for some reason the railroad does not keep on the plan they have shared with us about meeting their requirements to us. But as long as they keep that, we’re confident we will have the coal we need to make sure our customers have the low-cost generation that we provide ourselves.”
Amy McBeth, a spokeswoman for BNSF, contends the railroad continues to make strides.
“BNSF is in regular communication with our customers, working with them directly on their most urgent issues,” she said. “We are making progress in continuing to grow coal stockpiles. Our network is experiencing favorable conditions and maintaining good fluidity and velocity while having a higher than average number of trains on the system as we deliver some of our largest volumes of the year.”
Of late, Mullen said, Minnesota Power’s top brass has been in weekly conversations with the CEO of BNSF.
“It’s at that level of urgency in our company,” Mullen said.
Mullen said he’s optimistic Minnesota Power will make it through the coming winter without any big hitch, but he’s less confident about the long-term outlook.
Other companies have struggled to obtain adequate supplies of coal, as well, and many of them, including Minnesota Power, have joined forces to advocate for federal intervention as part of a group called the Western Coal Traffic League. The group has petitioned the federal Surface Transportation Board to impose a timetable for upgrades to BNSF’s rail system and a plan to improve service.
Mullen expressed his hope that the collective voice of power producers will be heard and heeded.
“The longer this problem goes on, the more we continue to look for options to create visibility around this issue to solve it,” he said. “I think it’s the most prudent thing we can do on our customers’ behalf is to try to make sure that we have the resources to meet our customers’ needs over the long term at the best possible cost. I think a basket of excuses at the end of the day — that we did the best we could but nothing helped — isn’t good enough. We have to make things happen.”
McBeth said BNSF is already taking action on its own.
“We have been working to achieve better velocity and fluidity on our rail network. Concurrent with capital projects intended to increase capacity, we are implementing various operational tactics that will improve velocity and throughput of train traffic. While the process is dynamic, we are confident that the various approaches we are taking to generate better fluidity to the network will be successful,” she said.
“Just this past week we announced our plan to spend $6 billion on expansion and maintenance of the railroad to meet the expected demand for freight rail service,” McBeth said, describing BNSF’s service upgrades. “This marks the third year in a row we have committed a record amount for capital investments.”
But Mullen called on BNSF to lay out and commit to following an agreed-upon long-range plan.
“If they just shared with us a plan that they would follow that showed how they were going to meet our needs, it would be a helpful start,” he said.
Tags: energy and mining, transportation, business, railroad, utilities
- See more at: http://www.prairiebizmag.com/event/article/id/21849/#sthash.uiUKwsIh.dpuf
the solution to rail capacity prior to a pipeline being built is here now thanks to ddcc. it is only a matter of time when events will favor their prospects.
be reassured that these types of reports are routine for companies that are startups. there is nothing amiss here. additionally, it is also good to note that the news re: baker hughes and haliburton can only help ddcc in their quest for success.
once again, this type of info reflects strongly on ddcc, and what they can offer to help in the rail car shortage is substantial.
the pick up is yet another indication of the potential for ddcc, they are well positioned.
...saw the slide presentation and translock2 truly is an advanced transportation system which will not be ignored.
the significance of the translock extends beyond the energy sector, and into anything that needs to be shipped, solving the logjam we currently experience throughout the economy at large. this development is huge when properly understood.
apple will overcome their i pay issues with certain retailers, i pay is the future of things and cannot be stopped.
ddcc is on track. their success is inevitable.
It seems like DDCC is perfectly matched up with the trend here in the shale sector.
now that they have a recent settlement we should be seeing more activity of a positive nature.
anyone can see that in an industry that is seeking to add supply, the services to those companies stand to prosper, that includes ddcc. patience here.
the iphone will again prove itself out. her comes christmas.
anyone with patience can see the ultimate potential as exampled here for ddcc
the key to the watch will be how people tolerate so much info in such a small package.
this is yet another good sign for the further prospects of ddcc.
ddcc appears to be working with the biggest names in the industry, this is good news, and today's news about the new hires shows things are picking up.
Double Crown Resources Adds New Board Members in Response to Increasing Business Activity and Customer Base
Two New Members Join Company Board of Directors Bringing Valuable Professional Experience and Skills
HENDERSON, Nev. (BUSINESS WIRE) -- August 28, 2014 -- Double Crown Resources, Inc. (OTCQB: DDCC), a fully reporting company, (hereinafter, "Double Crown") is pleased to announce an expansion of the company's Board of Directors with the appointment of two new members at this time. Allan P. Jones and Joseph L. Menton are both seasoned professionals who bring to Double Crown a range of industry expertise and skills which will help the company meet the demands of its increasing level of business activity. Mr. Jones has extensive experience in logistical oilfield supply & service which is especially valuable to our business plan. Along with the three Mining & Oilfield Project Specialists who were recently added to our team, Mr. Jones and Mr. Menton will fill key roles in enabling us to maintain close and timely contact requirements for our expanding customer base. Double Crown is currently working on project and contract development plans with some of the largest names in the global petroleum industry. Brief biographies for the new Board Members can be found on the Double Crown website and also below.
Allan P. Jones has over 15 years of experience in large scale industrial construction and petroleum industry support projects. He served as Vice President of Sales and Marketing for Oilfield Services at M. Nasr Partners, a successful building design, construction and industrial services company based in Houston, TX. In this position, Mr. Jones initiated and maintained relationships with company representatives from the oil & gas industry. His responsibilities included negotiating contracts, business strategy development, new business procurement, project operations as well as direct client interaction and support. His projects included the sale and delivery of vital oilfield minerals and related commodities including fracturing sand and guar products to petroleum exploration and drilling companies throughout the US. Through his professional experience he has gained considerable working knowledge of the key requirements for structuring a successful sales and logistical supply plan suited to the specific needs of modern oilfield drilling operations.
Joseph L. Menton brings over 10 years of experience working at a range of positions in the construction and technology industries reaching upper management levels. Mr. Menton is currently Vice President of Menton Builders, Inc. His specific areas of expertise include corporate management, business development, marketing, web design, drafting/design work and preparation of contracts, budgets and project timelines. He is especially accomplished in building lasting and successful client relationships. Mr. Menton has also worked for Systems Machines Automation Components (SMAC), a San Diego, CA based miniature robotics company. In addition to customer relations and technical support roles he worked in the binary programming department programming high tech products serving a variety of industries.
Double Crown's Chairman & CEO Jerold S. Drew commented on the newest additions to the company's Board of Directors as follows, "Allan P. Jones and Joseph L. Menton have both been working with Double Crown Resources as outside consultants for some time and they have already made many important contributions to our progress and business development. We are very glad to be welcoming both of these success-driven and accomplished professionals to our Board. As we are now moving into the commercial contract signing and fulfillment stage of our business plan it is very gratifying to see both of these gentlemen step forward to assume direct leadership roles for Double Crown. Our management knows they will devote all of the time, energy and capabilities we need to fully serve all the logistical requirements of our customers and to deliver on our objective of bringing enhanced value to all DDCC investors."
About Double Crown Resources, Inc.
Double Crown Resources, Inc. is a natural resource exploration and development company holding a 100% interest in the Bateman gold & nickel prospect near Thunder Bay, Ontario, Canada. In addition, Double Crown is targeting new properties as well as oilfield supply & service projects that have the potential for near-term positive cash flow. The company is presently reviewing a number of new natural resource properties that are near to, or in production, located in North, South and Latin America. Multiple oilfield service projects are currently under active development. Double Crown Resources, Inc., originally founded in 2006, is based in Henderson, NV.
Neither this press release nor any related calls or discussions constitutes an offer to sell, or the solicitation of an offer to buy, any securities.
Forward-Looking Statements
You should not place undue reliance on forward-looking statements in this press release. This press release contains forward-looking statements that involve risks and uncertainties. Words such as "will," "anticipates," "believes," "plans," "goal," "expects," "future," "intends," and similar expressions are used to identify these forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks we face as described in this press release. For further information about Double Crown Resources, Inc., please refer to its website at http://www.doublecrownresources.com/.
CONTACT:
Double Crown Resources, Inc.
Jerold S. Drew, CEO & Chairman of the Board
10120 S. Eastern Ave. Suite 200
Henderson, Nevada 89052
Phone: (707) 961-6016
Email: info@doublecrownresources.com
Copyright Business Wire 2014
-0-
KEYWORD: United States
North America
Nevada
Wisconsin
INDUSTRY KEYWORD: Natural Resources
Mining/Minerals
hitting $100 after the split is yet another sign of perpetual strength here, and the phones keep rolling out for apple.
expanding orders? vendor status with top customers? great news indeed for ddcc.
these guys look solid, yet another step in the right direction for ddcc.
the overall energy sector environment is so positive that the ultimate success of ddcc seems assured here.
it appears inevitable that ddcc will succeed due to the high demand and need for their product.
see how hal is ramping up fracturing
North American production bolsters Halliburton profit
Halliburton again placing its bets on hydraulic fracturing
By Collin Eaton
July 21, 2014
KARIM SAHIB, Staff
Dave Lesar, Chairman, President and Chief Executive Officer of Halliburton and one of Dubai latest residents hosts press conference, 22 May 2007 in Dubai. He talked about the move to the UAE and Halliburton's plans to grow business in the Eastern Hemisphere. Halliburton is one of the largest providers of products for the gas and oil industries. Formed In 1919, the company employs over 100,000 people in over 12 countries. AFP PHOTO/KARIM SAHIB. (Photo credit should read KARIM SAHIB/AFP/Getty Images)
After a two-year lull, Halliburton is betting on hydraulic fracturing in North America again.
A new wave of demand for oil production equipment in West Texas and elsewhere has eaten into a glut of U.S. hydraulic fracturing pumping power and has prompted Halliburton to accelerate plans to build a fleet of new pumps, CEO Dave Lesar told investors Monday.
That wouldn't have made sense last year, when the fracturing market was still reeling from the collapse of natural gas prices. The resulting cutback in activity left much of the pumping equipment made for the shale gas boom on the sidelines, and much cheaper. But things are changing now, Halliburton says.
"In our last call, some might have been skeptical when I said I was beginning to feel us turn the corner in North America," Lesar said in a conference call discussing second-quarter earnings. "That feeling was dead on. Today, we are not feeling the turn, we are in the turn."
The Houston oil field services company cleared a 21 percent profit boost in the second quarter as demand for oil production equipment climbed in North America, and as drills kept spinning in the eastern hemisphere, the company said.
Halliburton banked a profit of $776 million, or 92 cents a share, in the April-June period, compared with $642 million, or 69 cents a share, in the same period last year.
Revenue grew 10 percent to a record $8.1 billion for the quarter as North American oil companies spent more on post- drilling processes that gear up wells to pump oil and gas, known as completions. The big one: hydraulic fracturing.
Those quarterly results followed financial reports by Schlumberger and Baker Hughes last week that reflected a jump in sales in North America, especially in the Permian Basin, according to Houston-based Baker Hughes.
There, newly minted horizontal rigs are rising over the land near Odessa and Midland, and oil companies are turning to hydraulic fracturing to release trapped hydro- carbons.
Halliburton's North American profits were better than expected, analysts with Tudor Pickering wrote in a note to clients Monday.
"Good results combined with frac capacity additions will add to the already good vibe (and) outlook," they wrote. "It should be no surprise that Halliburton is adding capacity. Their capacity is fully committed and demand is increasing."
In the Middle East and Asia, drilling activity continued to grow, especially in Saudi Arabia, bolstering sales in the region 12 percent to $841 million in the second quarter, Halliburton said.
Halliburton's only big disappointment came in Latin America. Compared with last year, profit there fell 39 percent after Mexico's state-run Petroleos Mexicanos failed to deliver a software order on time, impairing Halliburton's ability to book revenue and offset costs, Lesar said.
The company's North American revenue grew to $4.3 billion, up 14 percent over last year, when U.S. drilling and production spending had slowed.
Completion volumes per well increased more than 35 percent over the second quarter 2013, driving sales on the post-drilling side of the business, the firm said.
Profit margins in the region may reach 20 percent in the third quarter. That's a sign the time's right for Halliburton to launch its Q10 Pumps, expected to arrive in the fourth quarter and throughout 2015, Lesar said.
Fracturing profits had fallen after private equity firms flooded the market with high-horsepower pumps used to shoot water, chemicals and sand two miles underground to fracture shale rock to release oil and gas.
"We believe excess horsepower is below 10 percent now, and the market will require new horsepower to meet demand," Lesar said. "We'll be accelerating our Q10 build to meet customer demand."
The company is expecting North American margins to outpace the increase in the continent's rig count because of its sizable foothold in the market, said Mark McCollum, Halliburton's chief financial officer.
Halliburton also announced it has promoted its chief operating officer, Jeffrey Miller, to president, effective next month.
Lesar holds that title now and said after knowing Miller for more than two decades, he has great confidence in his abilities.
with all that's going on in the world, haliburton stands to gain with more production from n. america.
even missing revenue estimates won't matter because they are selling more product.
even the ipad issues cannot stop apple from growing.
welcome news on the way to inevitable success for this well placed company.