Who will sit on the oil throne?

(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section) 

On
April 12^th, Chevron Corp agreed to buy Anadarko Petroleum Corp for
$50 billion including debt.  The
acquisition would make Chevron as big as Exxon and Shell and double down its
position in the Permian Oil Basin, a region between western Texas and
southeastern New Mexico.  Not to be
outdone, Occidental Petroleum offered Anadarko a $57 billion takeout bid
starting the first takeover battle for a major oil company in years.  As expected, energy stocks have been strong
in reaction to the news.  Whether or not
the acquisition is the first in a wave of consolidation remains to be
seen.  Below, we discuss several
arguments for and against further industry consolidation.

Are Fossil Fuels Going the Way of the Dinosaurs?

(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)

There has been an exponential rise in the U.S. in renewable energy for electricity needs. Currently, 33% of

electricity
that is being generated in the US comes from carbon-free sources (nuclear and renewables).  This percent has quadrupled since 2005, smashing projections made just a few years ago.  Renewables are now responsible for generating as much electricity as coal, oil, or natural gas.  Renewable energy sources are likely to continue to increase at a fast pace for the foreseeable future. Over half of all new energy plants being built are either wind or solar.  But, will this growth trajectory continue without government support, and just how much electricity can renewables produce?

Monday, March 25, 2019

Torchlight Energy Resources (TRCH)

Surprising reserve data.

Torchlight Energy Resources Inc acquires, explores, exploits, and/or develops oil and natural gas properties in the United States. The company has an interest in four oil and gas projects namely the Orogrande Project in Hudspeth County, Texas, and the Hazel Project in Sterling, Tom Green, and Irion Counties, Texas, the Winkler Project in Winkler County, Texas, and the Hunton wells in partnership with Husky Ventures in Central Oklahoma. 

Mike Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• Torchlight Energy presented updated
  information on its Orogrande project, significantly increasing its estimated
  potential recoverable reserves.  Just one week earlier, the company estimated that its
  acreage could have 1.0 billion barrels of reserves.  Today, in a
  presentation to the investment community, it indicated it could have as much as
  3.7 billion barrels. 
• Management believes the time to
  sell the assets or the company is now!  The company plans to make presentations to investors
  beginning in April.  Management said in a call with analysts that its
  number one goal is to sell the company, but that other opti… 

Get full report on Channelchek desktop.

*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Permian oil production is soaring and gaining importance on a global scale.

(Note: related companies are at base of the
story and all the sources listed in the “Balanced” section)

The United States has already surpassed Saudi
Arabia as the largest producer of oil. 
Much of the increase has come in response to higher production in the
Permian Basin, a region between western Texas and southeastern New Mexico.  The Permian Basin now accounts for more than one-third
of domestic oil production, and that percentage is growing.  So much that some now believe Permian
production will soon surpass Saudi Arabia’s Ghawar Oilfield and become the
largest oil-producing field in the world.

Does OPEC still set oil prices?

(Note: all the sources
listed in the “Balanced” section)

It is well known that energy production in North America has grown in recent years in response to advances in technology. In fact, some energy leaders are now projecting that North America will be a net exporter of energy by the year 2020. North America’s gain means a decreased importance for Saudi Arabia and other OPEC countries. Currently, OPEC supplies 40% of the world’s oil and announced changes in production volumes have an immediate effect on oil prices. But, does OPEC still have enough influence to set pricing by controlling production output?  A strong OPEC able to set prices would mean higher energy prices and that would be bullish for all energy producers. A weak OPEC could mean lower prices and a bearish signal for owners of energy stocks. ^{1, 2}