When you think of giant oil fields you probably conjure up an image of vast areas of land or sea suitable for digging. However, Los Angeles demonstrates that oil extraction can take place right under our feet, producing as much as 100 million barrels every year. Compared to other major oil sites across the world, L.A. disguises oil diggers, sprawled across the city, as towers and buildings, so as not to look out of place. Six-story buildings and painted towers have been constructed across the city as facades to big oil diggers, extracting the black gold out of sight of daily commuters and tourists. Let’s talk more about oil boom.

With approximately 5,000 urban oil wells and 70 functioning oil fields, L.A. is a giant producer that no one talks about. There are a few other locations where extraction projects are taking place right in the center of the city, next to schools, businesses, and hospitals. Except for long-standing residents who have learned of the digging, few know about the urban oil production happening right on their doorstep.

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Source: Oil Price

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Winter temperatures below seasonal norms in the northern hemisphere have created a rally in natural gas prices from Asia to Europe. The spot liquefied natural gas (LNG) prices in north Asia jumped to record highs last week, while the key price marker in Europe, the Dutch Title Transfer Facility (TTF), rallied to the highest in more than two years.

The natural gas markets at the start of 2021 look completely different from the beginning of last year, when milder weather and the pandemic hit to demand had dragged natural gas prices down to historic lows.

This winter season, a rebound in Asian natural gas demand, supply issues at major LNG exporters, logistics issues at the Panama Channel, soaring tanker rates, and last but not least, the cold snap from Madrid to Tokyo, are pushing gas prices higher.

Even when temperatures return to seasonal norms in coming weeks and the Polar Vortex-induced cold spells in Europe end, natural gas prices will continue to be supported through the spring and summer, as buyers would look to restock, analysts say.

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Source: Oil Price

As oil prices continue to maintain the latest trajectory above the psychologically significant $50/barrel level, investors are increasingly recalibrating their investment prisms for beaten-down oil and gas companies. So what are the Best 3 Stocks to Buy Now?

WTI has rallied 12.8% over the past 30 days to trade at $53.02 per barrel while Brent is up 12.3% to $56.49, levels they last touched nearly a year ago thanks to a revamped OPEC-plus deal as well as an unexpected bonanza after Saudi Arabia announced plans to unilaterally cut its oil production by another 1M barrels.

Enter Shale 3.0.

For a sector that was supposed to be on its deathbed, U.S. shale might be the biggest beneficiary yet of the oil rally as higher crude prices offer a much-needed reprieve to strained balance sheets. The U.S. shale patch bears some of the highest production costs in the world, with most companies in the sector needing oil prices between $50 and $55 per barrel to break even.

That’s highly significant because it implies that another 5-10% climb in oil prices from here could mean the difference between bleeding cash and gushing profits for the shale sector.

But not all oil and gas companies need such high oil prices to break even, with a handful solidly in the green even at current prices.

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Source: Oil Price

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Several U.S. states will hold oil and gas lease sales via EnergyNet in January, with most of the bids due before January 20 when President-elect Joe Biden is scheduled to take office.

Biden’s energy plan favors renewables development and promises a ban on new oil and gas leases on federal lands.

Alaska, New Mexico, Texas, and North Dakota plan oil and gas lease sales this month, according to the EnergyNet schedule.

The Alaska Department of Natural Resources will be offering 284 tracts covering an estimated 867,841 acres in the Beaufort Sea area, in an online sealed bidding that ends on January 7. Alaska DNR is also offering oil and gas lease sales in the North Slope area, with bidding ending on January 7.

BLM is holding on January 14 an online sale of 37 parcels covering 6,850.72 acres in New Mexico, Texas, Oklahoma, and Kansas.

The Texas General Land Office will hold on January 19 an oil and gas lease sale, offering 66 Tracts covering 22,500.607 net mineral acres available for lease.

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Source: Oil Price

The energy sector has been one of the hardest hit by the Covid-19 pandemic, mostly due to widespread lockdowns and the resultant collapse in fuel demand. However, one corner of the energy market has actually been thriving: Clean energy. The sector’s favorite benchmark, iShares Global Clean Energy ETF (ICLN), has returned 124% YTD vs. 24% by the S&P 500. Those impressive returns appear well-deserved, though.

The International Energy Agency’s (IEA) 2020 Outlook points to the highest-ever share of newly built generation capacity for renewables. According to the energy watchdog, 200 gigawatts of renewable power have been added in the current year, with renewables expected to account for 95% of the net increase in global power capacity through 2025. The agency has projected that installed wind and solar capacity will surpass natural gas and coal in 2023 and 2024, respectively.

That said, one renewable energy entity has been on a winning streak that stretches back long before Covid-19 reared its ugly head: NextEra Energy Inc. (NYSE:NEE).

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Source: Oil Price