5 Fast Facts About The Current State of U.S. Exported Oil

5 Fast Facts About The Current State of U.S. Exported Oil

The U.S. shale boom has proved immensely successful as America continues to grow in the oil and gas market. However, as the trade war between China and the United States heats up, many are worried about whether or not the disputes will affect crude oil, especially oil exported from the United States.

Here are the 5 fast facts you need to know:

  • This Year Alone, China Imported 20% of American Crude Oil

China imported a total of 1.76 million barrels per day of crude oil through June. In fact, U.S. crude exports to China had risen to 15 million barrels in June, which was the highest volume since 1996.  In addition to importing a record-breaking amount of U.S. crude oil this year, China also bought 2.4 billion cubic feet per day of the 2.77 billion cubic feet per day of liquefied natural gas exported by the US.

  • America is Seeking to Force Iranian Oil Importers to End Purchases Completely

In June of this year, the U.S. said it would impose sanctions against all importers of Iranian oil by November. This was seen by some as a tough stance, and the trump administration has since softened, choosing to work with countries on a case-by-case basis. However, despite the leniency offered, the U.S. is still seeking to eventually end purchases of imported Iranian oil.

  • Although China Threatened to Impose Tariffs on U.S. Crude Goods, the Asian Country Ultimately Decided to Only Include Fuels on Their Tariff List

In response to the $50 billion in U.S. tariffs on Chinese imports (delivered June of this year), China had threatened to impose tariffs on the import of U.S. crude oil. This news shook the oil markets as China has been a principal recipient of American oil. Two months after the initial threat, though, China removed U.S. crude from its tariff list of goods.

  • Despite the Growing Tension Between China and the U.S., the U.S. Export Business Is Growing Rapidly

According to analysts, oil exports could grow by 1 million barrels a day annually over the next five years. And, liquified natural gas exports could more than double by 2020.

  • The U.S. is Gaining Momentum Despite Spats with China

In the next five years, the U.S. is expected to grow substantially into an energy exporting powerhouse. The country is estimated to rival oil exports from Saudi Arabia and become one of the world’s largest exporters of gas. And, these projections hold up regardless of the tension between the U.S. and China.

So, what does this new information mean for you?

With the revolution of shale oil production and its massive increase in domestic production, now is the perfect time to invest in U.S. oil and gas! Investing in U.S. oil is quickly gaining popularity as more people are paying attention to the amazing growth in the U.S. oil export business.

Contact Cannon Operating to learn more about the endless benefits of investing in current opportunities.  

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Surging Crude Oil Prices: What Does This Mean For My Investment?

Surging Crude Oil Prices: What Does This Mean For My Investment?

Talk of oil price surges are everywhere: newspapers, television news networks, and even among the patrons at your favorite local coffee shop.

But, what’s the cause and effect of this new development? And, what does it mean if you’re already invested or planning to invest in oil? Read below to find out!

Cause:

In May 2018, the Trump administration refused to recertify the nuclear deal with Iran. This decision sent prices for Brent crude, the European benchmark, above $80 per barrel for the first time in four years. This number was nearly three times the cost for Brent crude in 2016 when prices hit a low of $29 per barrel.

Effect:

Under these sanctions, U.S. companies are no longer allowed to buy crude oil from Iran, leading to about a million barrels of Iranian oil a day coming off the global market as a result. Because the U.S. will not provide waivers for European energy companies to continue to do business in Iran, prices for crude oil are predicted to surge.

 

How High Will Prices Surge?

Not as high as $100 per barrel says Joe McMonigle, senior energy policy analyst at Hedgeye Risk Management, and a former Department of Energy chief of staff. It seems that near $90 a barrel is a plausible price. (Keep in mind that current prices are at $80 per barrel.)  

What Does This Mean For Your Investment?

Just a few years ago, the U.S., as a significant importer, would have preferred to see lower oil prices. However, with the recent revolution of shale oil production that led to a massive increase in domestic production, the U.S. now benefits from higher crude oil prices as they lead to increased investments (like yours), job creation, and tax revenue!

To learn more about U.S. oil and gas investment opportunities, contact Cannon Operating today!  

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5 Reasons You Need to Invest in U.S. Oil Now

5 Reasons You Need to Invest in U.S. Oil Now

5 Reasons You Need to Invest in U.S. Oil Now

When people start searching for ways to invest, they immediately think their money is best used to back stock markets and real estate.

But, there’s a new player on the block that’s changing the investing game: U.S. oil.

More investors are choosing to invest in oil because of the amazing benefits offered like tax breaks, passive monthly income, and monthly cash flow that isn’t tied up in real estate or stock markets. And, when you see how well oil projects are doing in the United States, you’ll agree.

These are the five most significant reasons to invest in U.S. oil now:

It’s Cheap

One of the biggest reasons more investors are choosing to back U.S. oil projects is that it’s cheap to drill in the United States. Muhammed Ghulam, an analyst at Raymond James who covers the sector, has stated that prices could plunge to 20% and we’d still see a decent amount of increase in production.

Oil Companies Are Choosing Low-Risk Projects

After the oil market crash in 2008, oil companies are investing time, money, and resources on low-risk, high-reward projects. This is great news for investors because it means that projects are more likely to be successful and investors are more likely to see higher numbers in their monthly passive income.

There Have Been Enormous Improvements In Shale Drilling

Now more than ever before, companies have made vast leaps in their ability to drill for natural gas in shale formations successfully. Shale gas is one of the fastest growing trends in U.S. domestic energy exploration and production. This emerging trend is a great (and safe) option for investors and oil companies who get in early.

Companies Now Have Better Technology

To drill shale gas, companies needed to create and use better drilling technology. Oil companies have pulled through and discovered efficient technologies that help extract shale gas: hydraulic fracturing, horizontal drilling, and microseismic imaging.

Companies Are Committed To Making Disciplined Decisions

Just as they’ve focused on choosing low-risk projects, companies have also learned to budget better and make disciplined decisions to avoid bankruptcies or major job cuts due to expensive or high-risk project choices.

Investing in U.S. oil is quickly gaining popularity as more people are seeing the value of committing to our own nation’s natural resources.

Take advantage of this new, exciting, high-reward investment choice. Contact Cannon Operating today to invest in a project today!

Source: money.cnn.com/2018/05/29/investing/oil-prices-analysis-opec-shale/index.html

 

Traders are betting on $100 price on oil price per barrel in 2018

Traders are betting on $100 price on oil price per barrel in 2018

While oil industry executives are preparing to live and profit in the world of $50 oil over the next few years, some enthusiast investors have been betting on $100 oil for December 2018 options.

Open interest in $100 call options for December 2018 has tripled in one week to exceed 30,000 lots, according to Reuters. Open interest in that contract is now equal to the most active contract of the December 2017 options — $60 call options. The $100 December 2018 options is the largest strike for all of 2018.

So you’re saying there’s a chance

Although bullish reports over the past few weeks point to stronger-than-expected oil demand growth, and although global oversupply has reduced over the summer, the bets for $100 oil at the end of next year are still way above estimates and forecasts. But that hasn’t stopped some traders from shooting the moon.

After oil prices entered bull-market territory at the beginning of this week, analysts started weighing in again on the future price of oil: How much could it rise? Could the increase be sustained?

 

 

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Oil could soon overtake its 2017 highs, strategist says

Oil could soon overtake its 2017 highs, strategist says

Crude oil is on pace to wrap up a strong September, having gained a little over 9% month to date.

Some see further gains ahead as much of the commodity’s losses have been recouped.

“Investors have really gained confidence in oil, after the OPEC cuts that were originally discussed earlier in the year are starting to take shape here, and oil production is being curbed,” Phil Streible, senior market strategist at RJO Futures, said Thursday on CNBC’s “Trading Nation.”

Further fueling the commodity’s recent upside is the International Energy Agency having upped its demand outlook for the end of this year and into 2018, Streible said.

Due to this combination of production cuts and growing demand, oil could head up to its 2017 high, just above $55, or even $60 per barrel by year-end. A global supply glut has plagued the market for several years, and OPEC member countries and non-member producers have vowed to implement cuts to curb such oversupply.

 

 

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Rising Demand Will Continue To Drive The Rally In Crude Oil Prices

Rising Demand Will Continue To Drive The Rally In Crude Oil Prices

As the rally in oil prices gathers steam, it’s important to place the quoted prices in context.  The price most frequently quoted for “crude oil” is the front-month West Texas Intermediate contract.  So, today’s oil price of “$52 per barrel” is the value of the contract for delivery at the hub in Cushing, OK by November 30th, a contract that settles on October 20th. The lag between the settlement date and the delivery date represents the necessity to transport the physical commodity.

So, there’s really no “spot” price for crude in the Western world, as it doesn’t settle on a day of/cash basis.  U.S. oil producers are compensated for their output based on the value of the futures contract for the month corresponding to the delivery of the oil.  Of course those producers use futures along the forward curve to hedge production in upcoming periods.

That type of market doesn’t necessarily exist around the world.  Saudi Arabia, for instance, sells its crude to China on a price that it sets monthly with an eye on oil futures, specifically for Brent crude. Other, less-developed oil nations sell at prices that more closely resemble a true spot market price.

 

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