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Energy Sector Woes

Energy Sector Woes

RP Weekly Recap | November 2 – 6

Summary

The energy sector has emerged as the worst-performing of the United States eleven market sectors in the current year, dropping to its lowest point relative to the S&P 500 since 1931. In fact, not only is the sector the biggest market loser of 2020, but it has also now become the worst performer on the market ever. Over the past 20 years, the S&P 500 has risen more than 130% while the XLE energy ETF has fallen 3%. Things need to start changing quickly if there is any hope for the energy sector.


COVID-19 Updates

COVID-19 Statistics

  • Number of Cases (Worldwide): 48,996,342 (up from 45,271,674 last week)
  • Number of Cases (USA): 9,628,469 (up from 8,964,815 last week)
  • Statistics courtesy of Johns Hopkins

Financial & Economic Updates

US Oil Market News

  • Energy Stocks Have Not Flashed This Bearish Signal Since 1931 (Link)  
  • Energy Stocks Are Now The Worst-Ever Performers In Market History (Link)  
  • Trump Signs Order To Protect Fracking (Link)  
  • After Weeks of Builds, U.S. Crude Oil Inventories See Massive Draw (Link
  • Drilling And Fracking Accelerates Ahead U.S. Election (Link)  
  • Oil And Gas Industry Praises GOP’s Hold On Railroad Commission (Link
  • Shell To Shut Down Louisiana Refinery (Link)  
  • MPLX Starts Up A New Major Pipeline In Texas (Link)  
  • Consolidation Is Killing Jobs In The U.S. Shale Industry (Link) **INTERESTING READ** 

Global Market News

  • OPEC’s Oil Revenues Set To Plunge To 18-Year Low (Link
  • Aramco’s Profit Drop Is A Dire Warning For Saudi Arabia (Link)  
  • Iraq Surpassed OPEC+ Oil Production Quota For October (Link
  • China’s Crude Oil Imports Sink In October (Link
  • Libya Oil Output Hits 800,000 Bpd (Link)  
  • Apache To Drill New Well Offshore Suriname (Link
  • Turkey Expands Gas Drilling In The Black Sea (Link)  
  • Kurdistan Halts All Oil Exports After Attack (Link)  
  • Norway’s Supreme Court Hears Rights Challenge to Arctic Oil Drilling (Link)  

Employment Updates

  • Unemployment Rate Falls to 6.9% as Economy Adds 638,000 Jobs – payroll gains in October pushed the unemployment rate to its lowest level since the start of the pandemic as the country braces for a surge in coronavirus cases (Link)  

US Rig Count

  • UP 4 from last week for a total of 300
  • Down 63% from one year ago
  • Statistics courtesy of Baker Hughes

RARE PETRO Updates

Content UpdatesNews PulsePodcast

  • Episode 4 (Industrial Internet of Things) from our newest segment, the Modern Mobile Oilfield is available now! This series is a collaborative effort between world renowned author Geoffrey Cann and RP host Tavis Killian that will expand on topics covered in the book “Bits, Bytes, and Barrels”. This new segment is aimed at energy professionals at any level who are looking to better understand the future of a digital oilfield, and potentially implement these technologies into their company’s workflow. Be sure to watch or listen on all available platforms HERE
  • A new episode of the Periodical Podcast is available now! Be sure to check out our discussion on the bullish natural gas market that has been charging forward in recent weeks regardless of the overshadowing news of low oil prices and a highly contested election. (Link
  • This week’s Periodical investigates a market that has been overshadowed by a highly contested election, global pandemic, and historically low oil prices. In recent weeks, natural gas prices rose to prices not experienced in over a year and a half when the Henry Hub gas benchmark climbed to a 19-month high in late October. With a cold winter ahead, a historic Hurricane season in full swing, depressed oil production, and soaring LNG exports; the gas futures market remains strong and will maintain its upward momentum into the foreseeable future. Be sure to check out Bullish Natural Gas Markets HERE!  
  • Our seventh installment of The Industry Leader Spotlight Podcast is available now! Be sure to check out our interview with the featured honoree on the 2020 Forbes 30 under 30 in Energy list, Ashley Zumwalt-Forbes HERE!
  • As Always, A New Monday Madness Podcast! (Link)   

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