Dow finished up 1, decliners slightly ahead of advancers & NAZ was off pocket change. Call that even. The MLP index fell 7.70 to the 383s (down an enormous 22 in just 4 trading days) & the REIT was of a fraction in the 257s.
Photo: Bloomberg
US oil output is poised to surpass Saudi Arabia’s in the next decade, making the world’s biggest fuel consumer almost self-reliant & putting it on track to become a net exporter, according to the International Energy Agency. Growing supplies of crude extracted through new technology including hydraulic fracturing of underground rock formations will transform the US into the largest producer for about 5 years starting about 2020. The US met 83% of its energy needs in H1, according to the Energy Dept. US crude imports have fallen 11% this year & is on track to produce the most oil since 1991. In a year when Iran has threatened to halt Persian Gulf oil shipments, the growing output, coupled with a gas-production boom, may help insulate the country from supply disruptions.
U.S. Oil Output to Overtake Saudi Arabia’s by 2020
There was little trading action today with many traders away on holiday. They will return tomorrow & the bears are in charge. The major story is selling in MLPs. Traditionally MLPs have a low beta, this fall ranks as eye popping. The only explanation I can think of would relate to worries about the tax advantage status. Even if there is change, the fundamentals are strong. The US needs a lot more energy infrastructure.
AMJ (Alerian MLP Index tracking fund)
Photo: Bloomberg
US oil output is poised to surpass Saudi Arabia’s in the next decade, making the world’s biggest fuel consumer almost self-reliant & putting it on track to become a net exporter, according to the International Energy Agency. Growing supplies of crude extracted through new technology including hydraulic fracturing of underground rock formations will transform the US into the largest producer for about 5 years starting about 2020. The US met 83% of its energy needs in H1, according to the Energy Dept. US crude imports have fallen 11% this year & is on track to produce the most oil since 1991. In a year when Iran has threatened to halt Persian Gulf oil shipments, the growing output, coupled with a gas-production boom, may help insulate the country from supply disruptions.
U.S. Oil Output to Overtake Saudi Arabia’s by 2020
There was little trading action today with many traders away on holiday. They will return tomorrow & the bears are in charge. The major story is selling in MLPs. Traditionally MLPs have a low beta, this fall ranks as eye popping. The only explanation I can think of would relate to worries about the tax advantage status. Even if there is change, the fundamentals are strong. The US needs a lot more energy infrastructure.
Dow Jones Industrials
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