Each week I summarize my portfolio positions (outrights and options) and performance in a table:
In his engrossing 2013 report The Cloud Begins with Coal (sponsored by the National Mining Association and the American Coalition for Clean Coal Electricity), Mark Mills bludgeons us with one impressive description after another of the growing energy demand from the information infrastructure.
Concerning the planned listing of a stake in the Saudi Arabian Oil Co, here’s what we know:
Each week I will summarize my portfolio positions (outrights and options) and performance in a table:
Previously I vowed to dig into the strategic stockpiles of highly enriched uranium (HEU), a secondary source of the U235 isotope that competes with uranium miners such as Cameco. HEU can be down-blended into LEU by mixing with un-enriched uranium and processed into fuel rods. In a future post I will discuss a third-source of nuclear fuel: recycling.
Some days ago I opened length in Cameco (CCJ), the Canadian uranium processor, with an initial belief that they could sustain their dividends and ride out the trough in U3O8 prices. Uranium spot prices (as quoted by Ux Consulting) have fallen from $70 per pound in 2011 (pre-Fukushima disaster) to $19 per pound recently. Cameco doesn’t deliver at these low spot prices but holds utility customers to long-term (and more expensive) supply contracts. However, these customers would understandably like to renegotiate the level for the duration of their existing deals or threaten to find a new supplier when it is time to renew. In other words, the plunging spot price does effect revenue. Continue reading Cameco and the supply of Yellow Cake
In an historic day for the oil market, the OPEC members met in Vienna in a closed door session and reached an agreement on 1.2 Mbpd of production cuts. Combined with a non-OPEC pledge to cut 600kbpd (including 300 kbpd from Russia), we will begin to see inventories slowly diminish.
Yet the language leading up to today was pessimistic. The Saudi energy minister Continue reading OPEC meeting – wrap-up and thoughts
If OPEC fails to organize a convincing accord in its meeting tomorrow, the resulting price drop of crude futures will be a great opportunity to enter long positions in Statoil (STO), British Petroleum (BP), and Transocean (RIG). If this occurs, energy investors should enter in SIZE. Continue reading OPEC meeting tomorrow
This startup consultancy anticipates the convergence of energy and data management as one seamlessly engineered solution. Energy is increasingly needed for computational work. The internet, with all of its necessary data-centers, is the largest growing consumer of power. By some estimates it consumes 8% of the electricity produced in the developed world with an expectation to double in 4 years. This conjoined sector is ripe for analysis and optimization.
Our challenge is to synthetically construct the best global energy company by constructing a long/short portfolio of 50 listed energy majors that represent a diverse mix of sectors and regions. We include European utilities, Japanese gas traders, global oil service providers, Chinese coal producers, and many more.