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The China Bubble Is Going to Burst

People take escalators in Hong Kong. Photographer: Philippe Lopez/AFP via Getty Images It’s no longer a question of whether China’s stock-market rally is a bubble, but when the bubble will burst. That’s the refrain from a growing number of analysts as valuations climb to levels that by some measures already exceed the peak of China’s last equity mania in 2007. A market crash may come within six months, Bocom International Holdings Co. said Tuesday, citing an analysis of global bubbles over 800 years that shows the speed of gains in China mirroring past market peaks. Macquarie Investment Management, whose Asian stock fund is outperforming 97 percent of peers in 2015, has already eliminated exposure to mainland shares after turning bearish for the first time in seven years. The government may engineer a correction if valuations rise much further, according to CLSA Ltd. “We are probably going to be in […]

Posted On : Published By : Tom Whipple
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U.S. gasoline prices take unexpected rise

Gasoline prices rise in the United States as ongoing refinery issues and slumping stocks drag on supplies. UPI/John Angelillo WASHINGTON, June 16 (UPI) — Retail gasoline prices in the United States are making a surprise surge as high demand and ongoing refinery issues crimp supplies, motor club AAA said. AAA reports a national average retail price for a gallon of regular unleaded gasoline at $2.80 for Tuesday, about six cents higher than last week and 10 cents higher than one month ago. The motor club in its weekly fuel gauge report said the new high-water mark for 2015 is attributed to a decline in gasoline stocks caused in part by higher fuel demand and "persistent refinery problems, which has limited gasoline production." Separate analysis from price-watchers at GasBuddy.com found retail gasoline markets in the Midwest were among the hardest hit by refinery issues, with Indiana and Michigan posting the […]

Posted On : Published By : Tom Whipple
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Activists arrested in Shell protest

Greenpeace activists arrested by U.S. Coast Guard officials during protest against Shell drilling plans offshore Alaska. Photo courtesy of Greenpeace. SEATTLE, June 16 (UPI) — Fourteen activists from Greenpeace were arrested by federal authorities during a protest against Shell’s arctic Alaska program off the coast of Seattle. Activists took to kayaks to protest against Shell’s use of the Port of Seattle as a staging ground for summer plans to drill off the coast of Alaska. Shell is proposing as many as six wells in a region known as the Burger prospect, located in shallow waters, using the Noble Discoverer and Polar Pioneer rigs. The Greenpeace activists were part of a larger group of around 50 protestors. Each of the Greenpeace activists were released and issued citations of $250. "Every minute that brave protesters can delay Shell’s Arctic drilling plans is another chance for President Obama to reconsider his disastrous […]

Posted On : Published By : Tom Whipple
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North Dakota touts diversity as rig count declines

Rig activity in North Dakota slowing down, though state’s government said diversity if key component of economic momentum. File Photo by UPI/Shutterstock/Lilac Mountain. BISMARCK, N.D., June 16 (UPI) — As the state’s governor boasts of strong economic growth in 2014, North Dakota data show activity in the exploration and production sector is in decline. State data for Tuesday show the number of rigs actively exploring for or producing oil and natural gas in North Dakota is 76, an increase of a single rig above the lowest count recorded since 2009. The number of rigs deployed in North Dakota is down nearly 60 percent from last year and 64 percent, or 138 rigs, below the historic peak reached in 2012. The U.S. Bureau of Economic Analysis last week reported gross domestic product in North Dakota increased 6.3 percent last year, beating out all other U.S. states. Gov. Jack Dalrymple said […]

Posted On : Published By : Tom Whipple
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Energy job losses mount for Canada

Canadian drilling association said it expects job losses to mount in a weakened energy sector. UPI/Shutterstock/Kodda CALGARY, Alberta, June 16 (UPI) — More than 25,000 total jobs are expected to be lost in the Canadian exploration and production sector, a well drilling association said. The Canadian Association of Oilwell Drilling Contractors said it was revising downward its drilling forecast because of lower crude oil prices and changing market conditions in the resource-rich province of Alberta. "Since its last revision in January 2015, the number of operating days is expected to decline by an additional 10,320 days or 13 percent," the association said in its latest forecast. "A sharp drop in the number of overall operating days means an estimated reduction of 25,110 total jobs in 2015, down almost 50 percent from the 2014 total of 49,950." The Canadian National Energy Board said it was monitoring crude oil prices as […]

Posted On : Published By : Tom Whipple
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Canadian oil producers eye hedging catch-up at $65/barrel

CALGARY, Alberta Canadian energy producers are giving up hoping for a big rebound in oil prices, preparing instead to embark on a course of belated hedging if crude prices edge just a few dollars higher. As crude markets collapsed during the first half of this year, Canada’s oil producers held back on hedging on concern they would lock in prices at barely break-even rates. That may be about to change. A rally in U.S. crude CLc1 from $60 a barrel today to about $65 could trigger a wave of selling from Canadian companies eager to build up protection against a second price slump, according to market sources in Calgary. Many allowed their hedging activity to lapse since last year, when oil tumbled to a six-year low near $42 a barrel. Canadian producers are between 10 percent and 20 percent underhedged compared with the same time last year, banking sources […]

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Kemp: North Dakota’s Oil Production Has Peaked

John Kemp is a Reuters market analyst. The views expressed are his own LONDON, June 16 (Reuters) – North Dakota’s crude oil output has peaked, according to the latest production data published by the state government, as the slump in prices takes its toll. The state produced 1.17 million barrels per day (bpd) in April, down from a peak of 1.23 million in December, the Department of Mineral Resources (DMR) reported on Friday. The former rapid growth in production has stalled and current output is no higher than it was in September 2014 ( http://link.reuters.com/zeb94w ). In the seven months between February and September 2014, output increased by 233,000 bpd, while in the seven months from September 2014 to April 2015, output actually edged down 18,000 bpd. Prices are by far the most important cause of the downturn, according to state regulators, followed by tax changes, tougher flaring rules […]

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EIA’s mapping system highlights energy infrastructure across the United States

image of U.S. energy mapping system, as explained in the article text EIA’s energy mapping system is a data-intensive visual reference tool that includes several map layers defining energy infrastructure components across the United States. Using this series of maps, viewers can see crude oil, petroleum, natural gas, or hydrocarbon gas liquid pipelines, terminals, and ports in their area, as well as high voltage electric transmission lines. The mapping system combines information from many government agencies as well as public and private sources. Understanding infrastructure components is helpful as energy supply and consumption patterns change. Crude oil pipelines and rail terminal locations are based on publicly available data. These map layers can be presented over several base layers with geographic, topographic, street, or satellite image detail, as well as with state, county, and congressional district borders. Each state’s map is also included as part of EIA’s State Energy Data […]

Posted On : Published By : Tom Whipple
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Houston Ship Channel could be closed until Thursday due to tropical storm

The Houston Ship Channel could remain closed until Thursday as high seas related to Tropical Storm Bill batter the region. The channel closed at 5:05 pm CDT (2205 GMT) Monday. The Greater Houston Port Bureau said in a statement that the Houston Pilots have 15 inbound and 17 outbound ships waiting in the queue and do not anticipate ships transiting the channel until Thursday morning. Galveston-Texas City and Brazos pilots are also not moving vessels, the statement said. Article continues below… Real-time news service tailored for ship owners, tanker charterers, brokers and traders plus the only independent source of daily clean and dirty tanker rate assessments daily. Tropical Storm Bill is expected to make landfall near Matagorda Bay and will bring heavy rain, high winds and elevated tide levels to the Houston area. Tuesday morning, sea swells were running at 11-12 feet. The suspension of ship movements in the […]

Posted On : Published By : Tom Whipple
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Opinion: The Dark Side Of The Shale Bust

« ExxonMobil brings Kearl oil sands expansion online ahead of schedule; overall capacity doubling to 220K barrels per day | Main | AeroVironment and Recargo introduce Pay With PlugShare for West Coast Electric Highway’s fast charging network » By Nick Cunningham of Oilprice.com The fallout of the collapse in oil prices has a lot of side effects apart from the decline of rig counts and oil flows. Oil production in North Dakota has exploded over the last five years, from negligible levels before 2010 to well over a million barrels per day, making North Dakota the second largest oil producing state in the country. But the bust is leaving towns like Williston, North Dakota stretched extremely thin as it tries to deal with the aftermath. Williston is coping with $300 million in debt after having leveraged itself to buildup infrastructure to deal with the swelling of people and equipment […]

Posted On : Published By : Tom Whipple