The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Up and Away
Global oil demand, which plunged as much as 30% during the worst of the pandemic lockdowns last March and April, is now back at about 95% of the pre-Covid high of just over 100 million barrels a day hit in 2019, according to the International Energy Agency. Together with aggressive output cuts from the OPEC+ alliance of oil exporters, that’s helped a revival in prices of more than 20% this year -- even after Thursday’s slump.
Commercial flights are back at two-thirds of comparable pre-Covid levels, the most activity since air traffic slumped a year ago, according to data from Flightradar24. In the U.S., foot traffic in airports has picked up, with a run of over 1 million daily passengers for eight straight days ending on Thursday -- something that hasn’t happened since the pandemic started.
In another indication of renewed optimism about travel, the flow of gasoline and diesel from refineries on the U.S. Gulf Coast to Mexican ports accelerated from February into March as the Latin American country’s resorts prepared for an influx of tourists over spring break, according to shipping data compiled by Bloomberg.
In China, air-passenger volumes climbed to 23.9 million trips in February, nearly three times the level of a year earlier, when the initial stages of the pandemic had grounded most of the country’s jets, according to the local civil aviation administration.
Looks like Purdue (Republican) could lose out in the Georgia run offs. Bad news if Biden takes the Senate. Means legislation concerning Oil will be easier to implement and ramifications for Canada. Might see KeystoneXL extension take a hit since he ruled against it when Vice President. US market wont like it. He might of course have second thoughts with high unemployment? I could be wrong of course. GLALTH's
I hold 768,381 shares purchased at 40/41p. i never change my stance. Quite few payed a lot more than me, based on hype from Carson/ Majid/ Heath. I investigate what could enhance the returns, or at least my money back from i3. Some people don't like what I say but I have been a shareholder of i3 a long time and I have to question why? I am hoping the appraisal of Serenity comes in good but I am far from convinced. I certainly wouldn't waste money with the Minos High or Lib West. I expect Serenity to be appraised in the spring; if unsuccessful the sp will tank. The stoiip is based on pressure testing , so nothing is going to convince me there is oil to the west until the drill finds it. It's about time these people proved themselves. I asked Graham why we weren't mining Clearwater for Heavy oil, he replied the weren't in the Oil Sands (twice), yet its promoted as part of the purchases of Toscana and Gain. Yes the differential is crap but the likes of ConocoPhilips and other majors mine and send diluted oil to the US Gulf Coast. They even use rail on a Pay or Take Contract which is more expensive than pipeline, but its guaranteed to get there. They make a good profit otherwise they wouldn't do it. Gas is forecast to increase but the market is also healthy for heavy oil from Complex Refineries such as the Gulf Coast. Majid / Heath gave themselves ATM options because Bybrook said they should. They will take up those options and receive dividends attached to the shares. This action should have been voted on. Of course whey would still have voted for them but at least the pi's would have had their say.
NEW YORK (Reuters) -Oil prices fell from multi-month highs in volatile trade on Monday as U.S. stocks eased on concerns over the outcome of runoff elections in Georgia.
The S&P 500 and the Dow also eased from record levels on the first trading day of the year as President Donald Trump travels to Georgia in a bid to keep the U.S. Senate in the hands of his Republican Party.
The market declined despite expectations the Organization of the Petroleum Exporting Countries and allies will hold off on increasing output in February and optimism over a vaccine-driven economic recovery.
The Company acquired a 100% operated interest in Licence P.1987, Block 13/23d, which contains the Liberator oil field and is adjacent to offtake infrastructure, from Dana Petroleum in December 2016
As detailed in the Company's Admission Document found at https://i3.energy/, i3's core asset is the Liberator oil discovery located in the Outer Moray Firth within the UK North Sea. The Company's independent reserve auditor, Gaffney, Cline & Associates ("GCA"), attribute 9.4 MMboe of 2C Contingent Resources to i3's 100% operated interest in Licence P.1987 in Block 13/23d (the "Liberator Licence Area" or "LLA"), with the wider Liberator Field Cluster ("LFC") containing 16.1 MMboe.
Canadian energy giants take out full-page newspaper ads as federal election looms
The three companies who signed the letter all market at least part of their oil in the form of non-upgraded bitumen. The letter says Canada’s energy companies produce a product that continues to be needed despite the growth of renewable energy, adding that oil and gas producers are the country’s single largest investors in clean energy technology.
Their is also a person called Biden waiting in the wings to cause upset. Biden’s climate and clean energy package is listed at $2 trillion. You should be fully aware the US is the largest export market for Canada. January 05th is the run off for Georgia and control of the Senate. If the Republicans win, it will be difficult for Biden to get his own way completely; tho' he will still be able to make Executive Orders. He has already stated that he will pull the plug on the XLKeystone extension but its also being said he has to consider employment following Covid. He has said he wants to rejoin the Paris Climate Accord which allows members to set their own emissions targets. It will involve reducing carbon emissions. What ever Biden decides concerning fossil fuels , it will affect Canada. Just to add; "We can't rely on Serenity since you seem to have been negotiating a F/O for as long as I can remember." Graham: "This speaks to the difficulty of the sector you’ve currently invested in by way of i3. We are making headway here and, as we’ve continued to publicly reiterate, believe we’re close to concluding a farm-out" Unquote.
Austin, Who said it was private? Graham has always indicated a willingness for any communications to be in the public domain. I asked him questions, he replied to some, but not all. Lets see if we acquire anymore reserves or are we reliant on Serenity?
(Freshair) We also know directors give themselves repriced options which are leaving a bitter taste (Graham) It was a Loan Noteholder condition of the restructuring of our Notes that management be aligned with these senior lenders who, prior to our recent equity issuance and this restructuring, were the effective owners of the Company given a potential default position. You will note in i3’s press release of 23rd June, “The Loan Note Instrument amendments include the requirement that the currently outstanding i3 management options will be cancelled and replacement options will be issued to i3 staff and directors which replicate the terms of the adjusted Loan Note warrants (the "New Options") in relation to the exercise price, to seek alignment between the Noteholders and management.” Unquote.
Concerning my dividend concerns. GH commented "Given recent volatility and future uncertainty in light of climate change initiatives, attracting new investment comes with the expectation that value will be returned to shareholders as and when it is created. It is becoming evermore apparent that new investment in our sector won’t be supplied purely on the expectation of equity growth"
There we go, the Lth are shafted. I need around 30p, some others need more.
I'm going to get pennies back instead of the K'000s I am down. Other companies are investing because when TransMountain is completed it will provide access to China, India and East Asia. They will still use oil and gas, even Germany will use gas for the foreseeable future.
If its so bad then why not sell up and move on?
Do I tell you what to do with your money? More to the point, are you saying my posts are not factual? Carson was involved with the rot. They chucked him out and what happened, we got Majid. What happened with the new seismic or put another way, what caused the sp to be where it is. Why is it under 5p.
The price paid by the refinery is almost unrelated to API density or grade. For example, Light Louisiana Sweet sells at a premium to WTI, but Heavy Louisiana Sweet has an even higher selling price. In fact, many medium and heavy sour grades were also purchased at premium prices, due to high demand for heavy crude in the Gulf Coast and oversupply of light oil from the Permian Basin.
Dividend? I'm against it. Returning cash to shareholders holds back the sp. Going Ex divi normally takes a month for the sp to recover whats been paid out; sometimes it doesn't. No point taking money out the company when it should be used to take on term debt; in turn using those borrowings to increase C/F by M&A. I had been expecting a company purchase by now, sadly not.
I don't believe there is anything at the Minos High. They missed the drill and said the oil must have went west. Nothing surprises me what they say. Serenity? They've had people interested for as long as I can remember. Hope I'm wrong.
Medium and heavy sour grades are often purchased at premium prices, due to high demand for heavy crude in the Gulf Coast and oversupply of light oil from the Permian Basin. As I've said previously the frackers destroyed the light oil market for Canada. There wasn't any point in paying upgraders anymore, when complex refineries were purposely built to refine heavy oil . These facilities have additional cracking, coking and hydro treating capacity, allowing them to produce more value-added final products. Another example is California heavy crude, which was sold near par with WTI, despite significant quality differences. California crude is produced adjacent to California refineries, which are designed to handle heavy/sour feedstock. Proximity to market is therefore a far more important driver of price than quality.