Category: Energy
Related News
Natural Resource-Related Stocks Show Promise: Frank Barbera The Recovery Is an Illusion: John Williams Lithium Demand Will Rise Significantly: Mansur Khan What Lies Ahead for Junior E&Ps: Bruce Edgelow Bob Moriarty: A Contrarian’s Guide to Volatile Markets Canadian Coal Moles: Jerome Hass and Jimmy Chu Small Uranium Equities Tempt Major Players: Rob Chang Catalytic Events Move Energy Stocks: Jocelyn August Marin Katusa vs. Porter Stansberry on Oil Prices |
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The Gold Report: Europe is in the headlines daily: more leftists coming to power, regional banks suffering, renewed recession appearing to take hold. What is your take on Europe?
Frank Barbera: In the headlines, Europe looks like quite the mess. Imagine being a Greek who saved over a lifetime now facing the possibility of devaluation or Greece leaving the euro.
The Gold Report: John, at the recent Casey Research Recovery Reality Check conference you described the economic recovery heralded by the Obama administration as an illusion based largely on skewed inflation data. Can you walk us through why, based on your calculations, a recovery is impossible?
John Williams: We can start with the gross domestic product (GDP), which like most economic reports is adjusted for inflation.
The Energy Report: EVs don't burn gas, but power must come from some source of fuel, such as nuclear, coal, hydro, gas, solar, geo or wind. So, what is the value of an electric vehicle (EV)? How does it help?Mansur Khan: From a societal and governmental point of view, there are a number of benefits. EVs can really help reduce carbon emissions. Their energy efficiency is very high, sometimes over three times that of conventional combustion engines.
The Energy Report: Bruce, what major changes do you see under way for junior explorers and producers (E&Ps)?Bruce Edgelow: Juniors have begun to transition from drilling moderately priced individual vertical wells to drilling much more capital-intensive resource plays. For example, in 2000 the cost to drill and complete one well in Pembina was ~$330,000. By 2010, the cost had ballooned to ~$2.75 million (M) due to horizontal drilling and more complex completion techniques.
The Gold Report: We're hearing many people these days warning that it's not a good time for investing in junior mining stocks. The TSX Venture Exchange has been experiencing some of its lowest volumes in six to nine months. What do you believe investors should do this summer?
Bob Moriarty: Anybody following my website for years will be familiar with me saying this: You can ignore technical analysis. You can ignore seasonality. You can ignore fundamentals.
The Energy Report: To get started, what differentiates Lightwater Partners from other hedge funds?Jerome Hass: Canadian hedge funds tend to be high-risk/high-return strategies primarily focused in the resource space. We focus on risk-adjusted returns, as opposed to trying to hit homeruns with individual stocks. As a consequence, we concentrate on the mid-cap space. That's our investment sweet spot, rather than the small- or micro-cap names.
The Energy Report: Fourteen months after the fact, the biggest story in uranium is still the tsunami that struck Japan and destroyed four nuclear reactors at the Fukushima Daiichi nuclear power station. Japan is attempting to eradicate its dependency on nuclear energy. Are any plants still operating? Will all reactors be shut down in the near future?Rob Chang: My numbers indicate that there are 50 reactors in Japan in total with only one still operating, and that last one is scheduled for a regular maintenance shutdown in early May.
The Energy Report: Jocelyn, you are following catalysts that affect resource stocks. What should energy resource investors be watching for?Jocelyn August: We have done an impact study for the natural resource sector and have identified many large-impact events in the energy sector. Similar to drug and device development, you can follow a timeline for the development of an energy resource project from the planning stages to exploration. The catalysts are very similar across these sectors.